NasdaqGM:ACMR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.1%

ACMR

2.9%

US Semiconductor

1.3%

US Market


1 Year Return

579.0%

ACMR

42.6%

US Semiconductor

14.9%

US Market

Return vs Industry: ACMR exceeded the US Semiconductor industry which returned 42.6% over the past year.

Return vs Market: ACMR exceeded the US Market which returned 14.9% over the past year.


Shareholder returns

ACMRIndustryMarket
7 Day26.1%2.9%1.3%
30 Day63.2%4.4%4.7%
90 Day173.7%21.7%17.1%
1 Year579.0%579.0%45.4%42.6%17.3%14.9%
3 Yearn/a84.3%74.6%38.9%29.9%
5 Yearn/a204.3%174.9%71.3%52.8%

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?

99.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACMR ($107.55) is trading above our estimate of fair value ($15.04)

Significantly Below Fair Value: ACMR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACMR is poor value based on its PE Ratio (99.4x) compared to the US Semiconductor industry average (38x).

PE vs Market: ACMR is poor value based on its PE Ratio (99.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ACMR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ACMR is overvalued based on its PB Ratio (19.8x) compared to the US Semiconductor industry average (3.4x).


Next Steps

Future Growth

How is ACM Research forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

47.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACMR's forecast earnings growth (47.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ACMR's earnings (47.2% per year) are forecast to grow faster than the US market (22.3% per year).

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

Revenue vs Market: ACMR's revenue (35.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ACMR's revenue (35.2% 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 (22.6%)


Next Steps

Past Performance

How has ACM Research performed over the past 5 years?

67.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACMR has high quality earnings.

Growing Profit Margin: ACMR's current net profit margins (16.8%) are higher than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: ACMR's earnings have grown significantly by 67% per year over the past 5 years.

Accelerating Growth: ACMR's earnings growth over the past year (67%) is below its 5-year average (67% per year).

Earnings vs Industry: ACMR earnings growth over the past year (67%) exceeded the Semiconductor industry -5.9%.


Return on Equity

High ROE: ACMR's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is ACM Research's financial position?


Financial Position Analysis

Short Term Liabilities: ACMR's short term assets ($198.5M) exceed its short term liabilities ($50.8M).

Long Term Liabilities: ACMR's short term assets ($198.5M) exceed its long term liabilities ($8.0M).


Debt to Equity History and Analysis

Debt Level: ACMR's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ACMR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ACMR's debt is well covered by operating cash flow (421.7%).

Interest Coverage: ACMR's interest payments on its debt are well covered by EBIT (288.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.14%

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?

9.6yrs

Average management tenure


CEO

David Hui Wang (59 yo)

22.58yrs

Tenure

US$598,694

Compensation

Dr. David Hui Wang 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 Chairman. ...


CEO Compensation Analysis

Compensation vs Market: David Hui's total compensation ($USD598.69K) is below average for companies of similar size in the US market ($USD4.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Hui Wang
Founder22.58yrsUS$598.69k10.62%
$ 182.8m
Mark McKechnie
CFO, Executive VP0.75yrUS$683.65kno data
Jian Wang
Vice President of Research & Development - ACM Research (Shanghai)9.58yrsUS$430.03k0.75%
$ 12.9m
Sotheara Cheav
Vice President of Manufacturing - ACM Research (Shanghai)9.58yrsUS$427.05k0.24%
$ 4.2m

9.6yrs

Average Tenure

57yo

Average Age

Experienced Management: ACMR's management team is seasoned and experienced (9.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Hui Wang
Founder22.58yrsUS$598.69k10.62%
$ 182.8m
Lip-Bu Tan
Member of Advisory Board3.58yrsno datano data
Chenming Hu
Independent Non-Employee Director & Member of Advisory Board3.58yrsUS$119.00k0.043%
$ 748.8k
Sun-Hai Chiao
Member of Advisory Board3.67yrsno datano data
Haiping Dun
Lead Independent Directorno dataUS$156.94k2.7%
$ 46.5m
Tracy Dong Liu
Independent Non-Employee Director3.92yrsUS$154.94k0.21%
$ 3.5m
Srini Raghavan
Member of Advisory Board4.25yrsno datano data
Yinan Xiang
Independent Dircector2.75yrsUS$18.00kno data
Zhengfan Yang
Independent Director2.58yrsUS$18.00kno data

3.6yrs

Average Tenure

60yo

Average Age

Experienced Board: ACMR's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ACMR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.5%.


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$1.722b
  • Shares outstanding: 17.95m
  • Website: https://www.acmrcsh.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACMRNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDNov 2017
813DB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2017

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 Analysis2020/08/04 00:18
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.