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AMKR

Amkor Technology NasdaqGS:AMKR Stock Report

Last Price

US$17.07

Market Cap

US$4.2b

7D

-5.7%

1Y

-36.9%

Updated

24 Sep, 2022

Data

Company Financials +
AMKR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends2/6

AMKR Stock Overview

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the rest of the Asia Pacific.

Amkor Technology, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Amkor Technology
Historical stock prices
Current Share PriceUS$17.07
52 Week HighUS$27.21
52 Week LowUS$14.89
Beta1.53
1 Month Change-22.16%
3 Month Change-1.27%
1 Year Change-36.87%
3 Year Change91.80%
5 Year Change61.80%
Change since IPO28.22%

Recent News & Updates

Sep 09

Amkor Technology: There Is More To Like Than Not To Like

Summary AMKR has been on a roller coaster ride in recent months, driven by changing headlines as to where the industry is heading. The sector is being pressured by weak forecasts from industry heavyweights, which is fueling perceptions that the industry is heading for a downturn. The stock has nonetheless outperformed in a tough year with the aid of growth that has held up and valuations that may be too negative on AMKR. AMKR may not be right for the short term, but it’s worth considering at current valuations with an eye towards the long term. Amkor Technology (AMKR) has seen lots of volatility lately. The stock is getting dragged around by forces that hold opposing views. On the one hand, the stock is facing downward pressure from the perception that semiconductor demand is getting weaker, especially with recent downgrades in earnings outlooks from industry heavyweights. On the other hand, the stock is benefiting from trading at low valuations and strong guidance with AMKR doing a good job managing the various headwinds out there, in part with the aid of rising industry interest in advanced packaging. There is still a case to be made in favor of long AMKR. Why will be covered next. AMKR is getting bounced around AMKR has seen its stock drop this year, similar to most companies out there. However, it’s worth mentioning that AMKR has done better than most semis in this regard. For instance, the iShares PHLX Semiconductor ETF (SOXX) has lost 33% YTD. In comparison, AMKR has lost 24% YTD. AMKR has outperformed in that sense. Still, the stock has been very volatile lately. The stock lost about 25% in June, only to gain it all back and then some with an almost 50% gain in July. However, the stock has reversed course and it is now heading lower once more. The stock has lost close to 20% since early August. All this happened in the span of about three months as shown in the chart below. Source: finviz.com The stock is bouncing around, held hostage to changing headlines. For instance, the stock suffered when COVID-19 lockdowns were imposed in China, something that would make its way back to AMKR’s earnings reports. The stock rebounded with the lifting of the restrictions, giving AMKR a chance to return business activities to normal and an improvement in quarterly results. However, the most recent decline in the stock coincided with weak forecasts from industry heavyweights like Micron (MU) and Nvidia (NVDA). Both cited weakening chip demand as justification for lowering their earnings outlook. The double whammy caused semis to sell off, AMKR included. The belief is that reduced demand for semiconductors will result in reduced demand for OSAT services from the likes of AMKR. On the other hand, it’s worth pointing out that while it is admittedly harder, individual names can still prosper in an environment where overall demand for semiconductors is down. Not all companies rely on OSAT services after all. Some companies rely on their own in-house test and packaging for their products. For instance, a shift in consumer demand towards products from fabless designers utilizing OSAT services and away from IDMs that depend on insourcing could create additional business opportunities for a company like AMKR. This is where something like advanced packaging could come in and make a difference. AMKR can create added value to entice customers to make the switch in order to benefit. AMKR is not necessarily doomed if or when a downturn arrives. It depends on how severe conditions get, assuming they even get there in the first place. Earnings growth is holding up at AMKR Part of the reason why AMKR has not sold off as much as some of the other semiconductor names out there is because AMKR has yet to report a significant deterioration in its earnings outlook like the semis mentioned earlier. On the contrary, growth is expected to pick up. The lifting of restrictions in China and a return to normal output levels in Q3 helps in this regard. However, the numbers in Q2 did take a hit from lockdowns in China. Q2 revenue declined by 5.8% QoQ, but it increased by 7% YoY to $1,505M, a new high for the second quarter. Note that AMKR missed expectations for the top line, but this was due to AMKR resuming production later than expected in China, resulting in revenue that was less than expected. Margins declined mostly due to a lower utilization rate as a result of production facilities being shut down in China. Nevertheless, EPS remained unchanged YoY at $0.51, thanks to contributions from non-operating income. EBITDA was $302M in Q2 FY2022, up from $295M in Q2 FY2021. AMKR finished with $1.1B in cash and short-term investments, offset by $1.1B in total debt. The ratio of debt to EBITDA was 0.8x. The table below shows the numbers from Q2 FY2022. (GAAP) Q2 FY2022 Q1 FY2022 Q2 FY2021 QoQ YoY Net sales $1,505M $1,597M $1,407M (5.76%) 6.97% Gross margin 16.6% 20.4% 19.4% (380bps) (280bps) Operating margin 9.5% 13.2% 11.0% (370bps) (150bps) Operating income $143M $210M $155M (31.90%) (7.74%) Net income (attributable to AMKR) $125M $171M $126M (26.10%) (0.79%) EPS $0.51 $0.69 $0.51 (26.09%) - (Non-GAAP) EBITDA $302M $363M $295M (16.80%) 2.37% Source: AMKR Form 8-K The Q2 numbers were negatively impacted by lockdowns in China, but the outlook sees a return to normal. Guidance calls for Q3 FY2022 revenue of $1,880-1,980M, an increase of 14.8% YoY at the midpoint. The forecast expects GAAP EPS of $0.82-1.02, an increase of 24.3% YoY at the midpoint. Both represent new all-time highs at the midpoint. (GAAP) Q3 FY2022 (guidance) Q3 FY2021 YoY Revenue $1,880-1,980M $1,681M 11.84-17.79% Gross margin 19.0-21.0% 19.3% (30bps)-170bps Net income $200-250M $181M 10.50-38.12% EPS $0.82-1.02 $0.74 10.81-37.84% While AMKR acknowledges the reports of weakness in certain segments of the semiconductor market, demand remains healthy, thanks in large part to advanced packaging. From the Q2 earnings call: “Demand for our technology and services remains robust, driven by our leadership position in advanced packaging supporting 5G, automotive, high performance computing and IoT. Although, we observe microeconomic headwinds and some weaker market forecast in some segments, we believe the long-term growth drivers for the semiconductor industry remain in place. And we have confident our strategic focus and leadership position in key semiconductor markets will continue to drive future growth.” A transcript of the Q2 FY2022 earnings call can be found here. AMKR is on sale Another reason why AMKR has not sold off as much as other semis has to do with valuations. Unlike other names with valuations that are up in the skies, AMKR trades at a discount, whether in comparison to the sector median and to its own 5-year average. For instance, current analyst estimates project FY2022 EPS of $2.92-3.10 and FY2023 EPS of $3.10-3.30. AMKR thus trades at 6 times forward earnings with a trailing P/E of 7. AMKR is currently trading at significantly lower multiples than it usually does. The 5-year averages are 23x and 15x respectively. In terms of the sector median, it’s 21x and 22x respectively. AMKR trades at lower valuations than most semis out there. AMKR Market cap $4.70B Enterprise value $4.98B Revenue ("ttm") $6,507.3M EBITDA $1,408.2M Trailing P/E 6.69 Forward P/E 6.27 PEG ratio 0.14 P/S 0.71 P/B 1.44 EV/sales 0.77 Trailing EV/EBITDA 3.54 Forward EV/EBITDA 3.27

Sep 01

Amkor Technology goes ex-dividend tomorrow

Amkor Technology (NASDAQ:AMKR) had declared $0.05/share quarterly dividend, in line with previous. Payable Sept. 26; for shareholders of record Sept. 6; ex-div Sept. 2. See AMKR Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 29
Amkor Technology (NASDAQ:AMKR) Seems To Use Debt Quite Sensibly

Amkor Technology (NASDAQ:AMKR) Seems To Use Debt Quite Sensibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 17
Is There An Opportunity With Amkor Technology, Inc.'s (NASDAQ:AMKR) 26% Undervaluation?

Is There An Opportunity With Amkor Technology, Inc.'s (NASDAQ:AMKR) 26% Undervaluation?

Does the August share price for Amkor Technology, Inc. ( NASDAQ:AMKR ) reflect what it's really worth? Today, we will...

Shareholder Returns

AMKRUS SemiconductorUS Market
7D-5.7%-6.0%-5.2%
1Y-36.9%-29.7%-23.0%

Return vs Industry: AMKR underperformed the US Semiconductor industry which returned -29.7% over the past year.

Return vs Market: AMKR underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is AMKR's price volatile compared to industry and market?
AMKR volatility
AMKR Average Weekly Movement6.8%
Semiconductor Industry Average Movement8.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: AMKR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AMKR's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196830,400Giel Ruttenhttps://amkor.com

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the rest of the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, and test and drop shipment services. The company also provides flip chip-scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip-chip stacked chip-scale packages that are used to stack memory on top of digital baseband, and as applications processors in mobile devices; and flip-chip ball grid array packages for various networking, storage, computing, and consumer applications.

Amkor Technology, Inc. Fundamentals Summary

How do Amkor Technology's earnings and revenue compare to its market cap?
AMKR fundamental statistics
Market CapUS$4.18b
Earnings (TTM)US$692.82m
Revenue (TTM)US$6.51b

6.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMKR income statement (TTM)
RevenueUS$6.51b
Cost of RevenueUS$5.25b
Gross ProfitUS$1.26b
Other ExpensesUS$568.86m
EarningsUS$692.82m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.83
Gross Margin19.39%
Net Profit Margin10.65%
Debt/Equity Ratio34.4%

How did AMKR perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

7%

Payout Ratio