Amkor Technology, Inc. (NASDAQ: AMKR)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0001047127
Market Cap 11.99 Bn
P/B 4.39
P/E 21.67
P/S 2.07
ROIC (Qtr) 5.68
Div Yield % 0.49
Rev 1y % (Qtr) 6.74
Total Debt (Qtr) 1.89 Bn
Debt/Equity (Qtr) 0.44

About

Amkor Technology, Inc. (AMKR) is a prominent player in the global semiconductor industry, specializing in outsourced packaging and test services. With a rich history of innovation, Amkor has established itself as a trusted provider of high-quality and reliable solutions to its customers. Amkor's primary business activities revolve around providing a broad array of packaging and test services to the semiconductor industry. The company's offerings encompass flip chip, wafer-level processing, and wirebond packaging, as well as advanced probe and final...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 988.73M provides robust 0.52x coverage of total debt 1.89B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.56B provide 2.72x coverage of short-term debt 572.11M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 988.73M provides exceptional 616.03x coverage of minority interest expenses 1.60M, showing strong core operations.
  • Operating cash flow of 988.73M provides exceptional 13.75x coverage of interest expenses 71.93M, showing strong debt service capability.
  • Operating cash flow of 988.73M provides strong 53.82x coverage of stock compensation 18.37M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 988.73M barely covers its investment activities of (853.09M), with a coverage ratio of -1.16, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (853.09M) provide weak support for R&D spending of 172.86M, which is -4.94x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 988.73M provides thin coverage of dividend payments of (181.71M) with a -5.44 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 1.40B relative to inventory of 399.89M (3.50 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 234.50M provides weak coverage of capital expenditures of 754.23M, with a 0.31 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 545.55 Bn 81.60 25.80 3.18 Bn
2 LRCX Lam Research Corp 270.12 Bn 366.11 84.92 4.48 Bn
3 AMAT Applied Materials Inc /De 260.74 Bn 38.58 9.28 6.56 Bn
4 KLAC Kla Corp 207.40 Bn 64.64 19.12 5.89 Bn
5 TER Teradyne, Inc 47.70 Bn 421.67 28.58 0.27 Bn
6 ENTG Entegris Inc 15.99 Bn 199.19 14.79 3.91 Bn
7 NVMI Nova Ltd. 12.80 Bn 52.23 15.01 0.88 Bn
8 AMKR Amkor Technology, Inc. 11.99 Bn 21.67 2.07 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.51 3.68
EV to Cash from Ops. EV/CFO 12.80 27.99
EV to Debt EV to Debt 6.55 2,137.46
EV to EBIT EV/EBIT 18.67 47.14
EV to EBITDA EV/EBITDA 10.12 30.10
EV to Free Cash Flow [EV/FCF] EV/FCF 61.18 68.49
EV to Market Cap EV to Market Cap 1.03 0.93
EV to Revenue EV/Rev 2.14 55.25
Price to Book Value [P/B] P/B 4.39 11.74
Price to Earnings [P/E] P/E 21.67 58.42
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.69 0.93
Dividend Payout Ratio % Div Payout % (Qtr) 58.90 667.25
Dividend per Basic Share Div per Share (Qtr) 0.74 0.62
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 77.66 8.52
Interest Coverage Int. cover (Qtr) 6.52 86.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -10.28 -57.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 62.14 21.17
Dividend Growth (1y) % Div 1y % (Qtr) 133.97 6.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -13.06 -69.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.34 -68.67
EBIT Growth (1y) % EBIT 1y % (Qtr) -7.52 -68.41
EBT Growth (1y) % EBT 1y % (Qtr) -10.53 -76.59
EPS Growth (1y) % EPS 1y % (Qtr) -15.54 -164.09
FCF Growth (1y) % FCF 1y % (Qtr) -46.85 70.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.83 43.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.79 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.10 0.04
Cash Ratio Cash Ratio (Qtr) 0.69 1.52
Current Ratio Curr Ratio (Qtr) 1.77 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.44 0.30
Interest Cover Ratio Int Coverage (Qtr) 6.52 86.73
Times Interest Earned Times Interest Earned (Qtr) 6.52 86.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.00 -1,802.55
EBIT Margin % EBIT Margin % (Qtr) 7.28 -1,926.38
EBT Margin % EBT Margin % (Qtr) 6.16 -1,932.94
Gross Margin % Gross Margin % (Qtr) 13.50 22.58
Net Profit Margin % Net Margin % (Qtr) 4.80 -2,101.05