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ACMR

ACM Research NasdaqGM:ACMR Stock Report

Last Price

US$17.62

Market Cap

US$1.0b

7D

-8.0%

1Y

-37.0%

Updated

18 Aug, 2022

Data

Company Financials +
ACMR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance1/6
Financial Health5/6
Dividends0/6

ACMR Stock Overview

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.

ACM Research Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ACM Research
Historical stock prices
Current Share PriceUS$17.62
52 Week HighUS$39.71
52 Week LowUS$11.23
Beta0.62
1 Month Change6.34%
3 Month Change27.40%
1 Year Change-37.00%
3 Year Change259.10%
5 Year Changen/a
Change since IPO773.72%

Recent News & Updates

Aug 15

ACM Research Is Still Facing Unresolved Issues

ACM Research staged a strong recovery in its latest report, putting it back on track after getting derailed in Q1 due to COVID-19 lockdowns. The stock has rallied in recent weeks after a major decline, but there is reason to believe further gains will be harder to come by. ACMR is a lot more affordable than in the past, but there are also a number of unresolved issues weighing on the company. ACMR has gotten some things done, but there is still a lot to be done to make a long position in ACMR truly worth it. ACM Research (ACMR) made huge strides in its latest earnings report, far surpassing expectations. While some might have been taken by surprise, most shouldn’t be. For starters, the base was lowered with ACMR suffering big declines in Q1. In addition, the Q1 results were primarily the result of COVID-19 lockdowns in China. So it stood to reason that ACMR would recover along with the lifting of restrictions in China. Nevertheless, the Q2 numbers were much better than expected. However, ACMR still faces a number of unresolved issues. Why will be covered next. ACMR comes roaring back If there’s one thing ACMR can agree with, it’s that COVID-19 can have a huge impact on quarterly results, especially if it involves resorting to lockdowns to combat the spread of COVID-19. Unfortunately for ACMR, China has decided to stick with lockdowns when it comes to dealing with COVID-19 outbreaks. These lockdowns resulted in ACMR falling into the red in Q1. Revenue fell by as much as 55.7% QoQ. However, the subsequent lifting of restrictions put ACMR in a position to make up for lost sales, if only in part. In fact, the top and the bottom line far surpassed consensus estimates in Q2. Q2 revenue increased by 147% QoQ and 94% YoY to $104.4M. GAAP EPS increased by 80% YoY to $0.18 and non-GAAP EPS increased by 266.7% YoY to $0.22. In comparison, consensus estimates expected revenue of $72.3M and non-GAAP EPS of just $0.03. Note that the 362.6% YoY increase in GAAP operating income is much more than the 86.3% YoY increase in net income. This is because of an unrealized gain of $3.78M due to the trading of securities in Q2 FY2021, which boosted GAAP earnings in that quarter. In contrast, there was a $0.42M unrealized loss due to the trading of securities in Q2 FY2022, skewing the quarterly comparisons. The table below shows the numbers for Q2 FY2022. (GAAP) Q2 FY2022 Q1 FY2022 Q2 FY2021 QoQ YoY Revenue $104.395M $42.186M $53.864M 147.46% 93.81% Gross margin 42.3% 46.7% 40.2% (440bps) 210bps Income (loss) from operations $20.035M ($9.306M) $4.331M - 362.60% Net income (loss) $12.236M ($5.786M) $6.567M - 86.33% EPS $0.18 ($0.09) $0.10 - 80.00%. (Non-GAAP) Revenue $104.395M $42.186M $53.864M 147.46% 93.81% Gross margin 42.4% 46.9% 40.5% (450bps) 190bps Income (loss) from operations $22.004M ($7.932M) $5.666M - 288.35% Net income (loss) $14.628M ($0.554M) $4.119M - 255.13% EPS $0.22 ($0.01) $0.06 - 266.67% Source: ACMR Form 8-K ACMR shipped 13 tools in Q2 that were originally supposed to be shipped in Q1. The rebound in Q2 offset the losses suffered in Q1, putting ACMR on track to hit the goals set at the start of FY2022. Guidance still calls for FY2022 revenue of $365-405M, an increase of 48% YoY at the midpoint. From the Q2 earnings call: “I will now provide our outlook. We have a strong order through year end. Due to a tight supply chain environment, we are keeping our outlook unchanged in the range of $365 million to $405 million. The range of our outlook consider among other factors, continued expansion of production and shipping operation in Shanghai.” A transcript of the Q2 FY2022 earnings call can be found here. Valuations are down ACMR looks to be back on track. In addition, ACMR used to trade at extremely high multiples as mentioned in an older article, but they have come down quite a bit. Multiples used to reach into the triple digits in the past. Granted, they are not as low as they used to be a few months ago after the recent rally in the stock, but they are much lower on average. For instance, the stock is valued at 1.76 times book value. In comparison, the 5-year average is 7.16x. The table below shows the multiples for ACMR. ACMR Market cap $1.16B Enterprise value $900.98M Revenue ("ttm") $308.7M EBITDA $45.5M Trailing P/E 40.54 Forward P/E 28.31 PEG ratio 8.65 Price/sales 3.71 Price/book 1.76 EV/sales 2.92 Trailing EV/EBITDA 19.79 Forward EV/EBITDA 15.94 Source: SeekingAlpha Why ACMR is still not in the clear Earnings have recovered and valuations are more reasonable than before. Some might see this as justification for going long ACMR. However, ACMR still faces a number of pitfalls. For instance, the numbers in Q2 were much better than in Q1 due to the absence of severe COVID-19 lockdowns in China, but there’s always the possibility of another bout of tough restrictions popping up. As long as China stays committed to using lockdowns to fight COVID-19, earnings are at risk of being hammered. There are other potential problems out there that have yet to be resolved. For instance, ACMR has been listed as one of the companies that could be delisted by the U.S. government for not abiding by U.S. accounting regulations. “I'm pleased with the progress with our new auditor. On May 19, we appointed PCAOB compliant auditor, Armanino as our independent public accounting firm for our first year 2022 audit. On June 30, this was ratified by our shareholders. Following our 2022 annual auditing and filing of the 10-K, we expect to be removed from this published by the SEC pursuing to the U.S. holding foreign company accountable factor.” ACMR has responded by appointing a new auditor, which it believes will result in getting removed from the list of companies that could be delisted. On the other hand, it’s worth pointing out that China and the U.S. have yet to come to an agreement on the issue. A number of Chinese companies have recently decided to leave the NYSE due to this issue. The threat of delisting remains out there for ACMR. It’s also worth mentioning that short interest spiked in the aftermath of ACMR being added to the list of companies facing delisting. Short interest rose in early March after the SEC mentioned ACMR and it now stands at 6.7M or 15.2% of the share float, roughly 6 times more than where it was before ACMR was added to the list of companies to be delisted. The stock has hit resistance The delisting news had another consequence. The stock fell off a cliff in early March, resulting in ACMR losing half of its value in a couple of days. On the other hand, while ACMR is still down 31% YTD, the stock has recouped some of its losses in recent months. The chart below shows how the stock has recovered to a certain degree. Source: finviz.com However, the rally has come to a standstill in recent days. The stock seems to have hit resistance. Note how the stock has problems breaking through the upper trendline in the chart above. The resistance imposed by this trendline has been in place for all of 2022. It's not impossible for the stock to move higher, but if the trend holds, the stock is likely to move lower. Note that the stock is back to where it used to be in the summer of 2020. In other words, anyone who invested in ACMR back in the summer of 2020 has nothing to show for the last two years. It’s true the stock rallied at certain points, but, whatever gains were made, were lost as quickly as they were won. Investor takeaways ACMR has recovered lost ground with its latest quarterly results. ACMR suffered a significant setback in Q1 with sales falling to just $42M, putting it in danger of missing out on its FY2022 target of $365-405M in annual revenue. However, ACMR managed to surpass expectations with a quick rebound. Sales grew 147% sequentially to $104.4M. ACMR got derailed in Q1 by COVID-19 lockdowns, but it’s now back on track when it comes to hitting its targets set at the start of FY2022.

Aug 04

ACM Research Q2 2022 Earnings Preview

ACM Research (NASDAQ:ACMR) is scheduled to announce Q2 earnings results on Friday, August 5th, before market open. The consensus EPS Estimate is $0.03 (-84.2% Y/Y) and the consensus Revenue Estimate is $72.28M (+34.3% Y/Y). Over the last 2 years, ACMR has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 4 downward. Revenue estimates have seen 0 upward revisions and 7 downward.

Shareholder Returns

ACMRUS SemiconductorUS Market
7D-8.0%2.4%1.4%
1Y-37.0%-3.2%-8.4%

Return vs Industry: ACMR underperformed the US Semiconductor industry which returned -4.2% over the past year.

Return vs Market: ACMR underperformed the US Market which returned -9% over the past year.

Price Volatility

Is ACMR's price volatile compared to industry and market?
ACMR volatility
ACMR Average Weekly Movement9.4%
Semiconductor Industry Average Movement8.6%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: ACMR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ACMR's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998877David Wanghttps://www.acmrcsh.com

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. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the Ultra C brand name through direct sales force and third-party representatives.

ACM Research Fundamentals Summary

How do ACM Research's earnings and revenue compare to its market cap?
ACMR fundamental statistics
Market CapUS$1.04b
Earnings (TTM)US$32.17m
Revenue (TTM)US$308.74m

32.5x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACMR income statement (TTM)
RevenueUS$308.74m
Cost of RevenueUS$169.76m
Gross ProfitUS$138.97m
Other ExpensesUS$106.80m
EarningsUS$32.17m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.54
Gross Margin45.01%
Net Profit Margin10.42%
Debt/Equity Ratio3.5%

How did ACMR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ACMR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACMR?

Other financial metrics that can be useful for relative valuation.

ACMR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA17.4x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does ACMR's PE Ratio compare to its peers?

ACMR PE Ratio vs Peers
The above table shows the PE ratio for ACMR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.1x
CAMT Camtek
19.6x8.0%US$1.4b
ICHR Ichor Holdings
16.5x18.6%US$1.0b
UCTT Ultra Clean Holdings
18.9x53.2%US$1.5b
VECO Veeco Instruments
29.4x18.8%US$1.2b
ACMR ACM Research
32.5x24.9%US$1.0b

Price-To-Earnings vs Peers: ACMR is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does ACMR's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: ACMR is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the US Semiconductor industry average (19.3x)


Price to Earnings Ratio vs Fair Ratio

What is ACMR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACMR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.5x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: ACMR is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.6x).


Share Price vs Fair Value

What is the Fair Price of ACMR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACMR ($17.62) is trading below our estimate of fair value ($33.75)

Significantly Below Fair Value: ACMR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


24.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACMR's forecast earnings growth (24.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ACMR's earnings (24.9% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: ACMR's revenue (23.3% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ACMR's revenue (23.3% 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 low in 3 years time (12.3%).


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Past Performance

How has ACM Research performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


47.4%

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 (10.4%) are lower than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: ACMR has become profitable over the past 5 years, growing earnings by 47.4% per year.

Accelerating Growth: ACMR's earnings growth over the past year (10.2%) is below its 5-year average (47.4% per year).

Earnings vs Industry: ACMR earnings growth over the past year (10.2%) underperformed the Semiconductor industry 56.1%.


Return on Equity

High ROE: ACMR's Return on Equity (5%) is considered low.


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Financial Health

How is ACM Research's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ACMR's short term assets ($900.6M) exceed its short term liabilities ($252.7M).

Long Term Liabilities: ACMR's short term assets ($900.6M) exceed its long term liabilities ($31.6M).


Debt to Equity History and Analysis

Debt Level: ACMR has more cash than its total debt.

Reducing Debt: ACMR's debt to equity ratio has reduced from 23.4% to 3.5% over the past 5 years.

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

Interest Coverage: ACMR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.21%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ACMR has not reported any payouts.


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Management

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

11.6yrs

Average management tenure


CEO

David Wang (61 yo)

24.58yrs

Tenure

US$398,876

Compensation

Dr. Hui Wang, also known as David, 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...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD398.88K) is below average for companies of similar size in the US market ($USD3.83M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ACMR's management team is seasoned and experienced (11.6 years average tenure).


Board Members

Experienced Board: ACMR's board of directors are considered experienced (5.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: ACM Research, Inc.
  • Ticker: ACMR
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Implied Market Cap: US$1.044b
  • Shares outstanding: 59.27m
  • Website: https://www.acmrcsh.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.