Amkor Technology (NasdaqGS:AMKR) - Share price, News & Analysis

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

AMKR ($15.44) is trading below our estimate of [[fair value]] ($54.03)

AMKR fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	6/6
Financial Health	6/6
Dividends	2/6

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.

Rewards

Trading at 71.4% below our estimate of its fair value

Earnings are forecast to grow 5.01% per year

Earnings grew by 76.1% over the past year

Risk Analysis

No risks detected for AMKR from our risk checks.

Amkor Technology Competitors

CMC Materials

NasdaqGS:CCMP

US$4.9b

MKS Instruments

NasdaqGS:MKSI

US$5.4b

FormFactor

NasdaqGS:FORM

US$2.7b

Nova

NasdaqGS:NVMI

US$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Amkor Technology
Historical stock prices
Current Share Price	US$15.44
52 Week High	US$29.50
52 Week Low	US$15.32
Beta	1.51
1 Month Change	-23.90%
3 Month Change	-27.55%
1 Year Change	-33.19%
3 Year Change	108.65%
5 Year Change	57.07%
Change since IPO	15.98%

Recent News & Updates

Jun 24

Amkor Technology: The Pros Outweigh The Cons

The charts have been leaning bearish for quite some time and they appear to have made a turn for the worse in recent days. Earnings are expected to take a dip after a record-setting quarter, but there is reason to believe a rebound is not that far away. Multiples for AMKR are arguably already too low and they will only get lower the more the stock keeps declining. The stock is likely heading lower in the short term, but valuations in combination with a likely second half rebound makes long AMKR worth it.

Jun 22

If EPS Growth Is Important To You, Amkor Technology (NASDAQ:AMKR) Presents An Opportunity

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

	AMKR	US Semiconductor	US Market
7D	-10.7%	-9.5%	-2.5%
1Y	-33.2%	-24.2%	-21.2%

Return vs Industry: AMKR underperformed the US Semiconductor industry which returned -20.9% over the past year.

Return vs Market: AMKR underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is AMKR's price volatile compared to industry and market?
AMKR volatility
AMKR Average Weekly Movement	7.4%
Semiconductor Industry Average Movement	8.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

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

Founded	Employees	CEO	Website
1968	30,400	Giel Rutten	https://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 Fundamentals Summary

How do Amkor Technology's earnings and revenue compare to its market cap?
AMKR fundamental statistics
Market Cap	US$3.78b
Earnings (TTM)	US$693.85m
Revenue (TTM)	US$6.41b

5.4x

P/E Ratio

0.6x

P/S Ratio

Is AMKR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMKR income statement (TTM)
Revenue	US$6.41b
Cost of Revenue	US$5.12b
Gross Profit	US$1.29b
Other Expenses	US$591.50m
Earnings	US$693.85m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.83
Gross Margin	20.06%
Net Profit Margin	10.83%
Debt/Equity Ratio	39.8%

How did AMKR perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

6%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AMKR. This is calculated by dividing AMKR's market cap by their current preferred multiple.
What is AMKR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.78b

AMKR 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/Revenue	0.6x
Enterprise Value/EBITDA	2.9x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

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

AMKR PE Ratio vs Peers

The above table shows the PE ratio for AMKR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26x
CCMP CMC Materials	44.2x	n/a	US$4.9b
MKSI MKS Instruments	9.4x	7.7%	US$5.4b
FORM FormFactor	28.5x	18.5%	US$2.7b
NVMI Nova	21.9x	8.9%	US$2.4b
AMKR Amkor Technology	5.4x	5.0%	US$3.8b

Forward PE

Price-To-Earnings vs Peers: AMKR is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: AMKR is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US Semiconductor industry average (17.4x)

Price to Earnings Ratio vs Fair Ratio

What is AMKR'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.

AMKR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.4x
Fair PE Ratio	17.5x

Price-To-Earnings vs Fair Ratio: AMKR is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

Share Price vs Fair Value

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

Below Fair Value: AMKR ($15.44) is trading below our estimate of fair value ($54.03)

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

Price to Earnings Growth Ratio

PEG Ratio: AMKR is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is Amkor Technology forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMKR's forecast earnings growth (5% per year) is above the savings rate (1.9%).

Earnings vs Market: AMKR's earnings (5% per year) are forecast to grow slower than the US market (13.6% per year).

High Growth Earnings: AMKR's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMKR's revenue (4.4% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: AMKR's revenue (4.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AMKR's Return on Equity is forecast to be low in 3 years time (18.5%).

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Past Performance

How has Amkor Technology performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

27.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AMKR has high quality earnings.

Growing Profit Margin: AMKR's current net profit margins (10.8%) are higher than last year (7.5%).

Past Earnings Growth Analysis

Earnings Trend: AMKR's earnings have grown significantly by 27.6% per year over the past 5 years.

Accelerating Growth: AMKR's earnings growth over the past year (76.1%) exceeds its 5-year average (27.6% per year).

Earnings vs Industry: AMKR earnings growth over the past year (76.1%) exceeded the Semiconductor industry 70.4%.

Return on Equity

High ROE: AMKR's Return on Equity (22.3%) is considered high.

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Financial Health

How is Amkor Technology's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AMKR's short term assets ($2.9B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: AMKR's short term assets ($2.9B) exceed its long term liabilities ($1.5B).

Debt to Equity History and Analysis

Debt Level: AMKR's net debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: AMKR's debt to equity ratio has reduced from 108% to 39.8% over the past 5 years.

Debt Coverage: AMKR's debt is well covered by operating cash flow (89.3%).

Interest Coverage: AMKR's interest payments on its debt are well covered by EBIT (16.1x coverage).

Balance Sheet

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Dividend

What is Amkor Technology current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AMKR's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: AMKR's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.3%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AMKR has been paying a dividend for less than 10 years.

Growing Dividend: AMKR's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6.3%), AMKR's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.3%), AMKR's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure

CEO

Giel Rutten (65 yo)

2yrs

Tenure

US$3,832,635

Compensation

Mr. Giel Rutten serves as President, Chief Executive Officer and Director at Amkor Technology, Inc. since June 2020 and served as its Executive Vice President since February 2020 until June 2020. Mr. Rutte...

CEO Compensation Analysis

Compensation vs Market: Giel's total compensation ($USD3.83M) is below average for companies of similar size in the US market ($USD6.90M).

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

Leadership Team

Experienced Management: AMKR's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: AMKR's board of directors are considered experienced (7.3 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31