NasdaqGM:ACMR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$1.8b

Last Updated

2021/08/01 22:34 UTC

Data Sources

Company Financials +

Executive Summary

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. More Details


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has ACM Research's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACMR is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: ACMR's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

6.1%

ACMR

2.3%

US Semiconductor

-0.4%

US Market


1 Year Return

-3.2%

ACMR

55.6%

US Semiconductor

35.9%

US Market

Return vs Industry: ACMR underperformed the US Semiconductor industry which returned 55.6% over the past year.

Return vs Market: ACMR underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

ACMRIndustryMarket
7 Day6.1%2.3%-0.4%
30 Day-7.7%-0.2%-0.3%
90 Day19.1%11.0%3.1%
1 Year-3.2%-3.2%57.6%55.6%38.0%35.9%
3 Year530.0%530.0%129.6%118.2%62.9%52.7%
5 Yearn/a298.9%261.9%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is ACM Research's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ACM Research undervalued compared to its fair value and its price relative to the market?

12.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACMR ($92.86) is trading below our estimate of fair value ($105.99)

Significantly Below Fair Value: ACMR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACMR is poor value based on its PE Ratio (75.8x) compared to the US Semiconductor industry average (34.6x).

PE vs Market: ACMR is poor value based on its PE Ratio (75.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ACMR is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ACMR is overvalued based on its PB Ratio (11.9x) compared to the US Semiconductor industry average (4.7x).


Future Growth

How is ACM Research forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACMR's forecast earnings growth (29.4% per year) is above the savings rate (2%).

Earnings vs Market: ACMR's earnings (29.4% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACMR's revenue (30.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: ACMR's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACMR's Return on Equity is forecast to be high in 3 years time (23.9%)


Past Performance

How has ACM Research performed over the past 5 years?

59.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACMR has a high level of non-cash earnings.

Growing Profit Margin: ACMR's current net profit margins (12.8%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: ACMR's earnings have grown significantly by 59.3% per year over the past 5 years.

Accelerating Growth: ACMR's earnings growth over the past year (20.3%) is below its 5-year average (59.3% per year).

Earnings vs Industry: ACMR earnings growth over the past year (20.3%) underperformed the Semiconductor industry 55.6%.


Return on Equity

High ROE: ACMR's Return on Equity (11.9%) is considered low.


Financial Health

How is ACM Research's financial position?


Financial Position Analysis

Short Term Liabilities: ACMR's short term assets ($286.6M) exceed its short term liabilities ($128.0M).

Long Term Liabilities: ACMR's short term assets ($286.6M) exceed its long term liabilities ($28.5M).


Debt to Equity History and Analysis

Debt Level: ACMR's debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: ACMR's debt to equity ratio has reduced from 198.4% to 19.8% over the past 5 years.

Debt Coverage: ACMR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ACMR's interest payments on its debt are well covered by EBIT (52.8x coverage).


Balance Sheet


Dividend

What is ACM Research current dividend yield, its reliability and sustainability?

0.072%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ACMR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACMR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACMR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACMR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACMR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.5yrs

Average management tenure


CEO

David Hui Wang (60 yo)

23.5yrs

Tenure

US$5,369,089

Compensation

Dr. David Hui Wang, Ph.D., serves as Chairman of ACM Research (Shanghai), Inc. Dr. Wang has been Chief Executive Officer, President and Director at ACM Research, Inc. since January 1998 and serves as its C...


CEO Compensation Analysis

Compensation vs Market: David Hui's total compensation ($USD5.37M) is above average for companies of similar size in the US market ($USD3.71M).

Compensation vs Earnings: David Hui's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ACMR's management team is seasoned and experienced (10.5 years average tenure).


Board Members

Experienced Board: ACMR's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

Company Information

ACM Research, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ACM Research, Inc.
  • Ticker: ACMR
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$1.763b
  • Shares outstanding: 18.98m
  • Website: https://www.acmrcsh.com

Number of Employees


Location

  • ACM Research, Inc.
  • 42307 Osgood Road
  • Suite I
  • Fremont
  • California
  • 94539
  • United States

Listings


Biography

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:34
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.