Ichor Holdings (NasdaqGS:ICHR) - Share price, News & Analysis

ICHR fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	1/6
Financial Health	3/6
Dividends	0/6

ICHR Stock Overview

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment.

Rewards

Price-To-Earnings ratio (16.8x) is below the Semiconductor industry average (21.7x)

Earnings are forecast to grow 18.59% per year

Earnings have grown 4.7% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Significant insider selling over the past 3 months

Ichor Holdings Competitors

Veeco Instruments

NasdaqGS:VECO

US$1.2b

ACM Research

NasdaqGM:ACMR

US$1.1b

Cohu

NasdaqGS:COHU

US$1.4b

Camtek

NasdaqGM:CAMT

US$1.3b

Price History & Performance

Summary of all time highs, changes and price drops for Ichor Holdings
Historical stock prices
Current Share Price	US$36.73
52 Week High	US$51.98
52 Week Low	US$21.08
Beta	2.07
1 Month Change	31.09%
3 Month Change	28.02%
1 Year Change	-8.40%
3 Year Change	74.74%
5 Year Change	85.98%
Change since IPO	275.95%

Recent News & Updates

Jul 18

Ichor Holdings (NASDAQ:ICHR) 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...

Shareholder Returns

	ICHR	US Semiconductor	US Market
7D	23.7%	6.6%	4.5%
1Y	-8.4%	-3.3%	-8.9%

Return vs Industry: ICHR underperformed the US Semiconductor industry which returned -4.3% over the past year.

Return vs Market: ICHR exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is ICHR's price volatile compared to industry and market?
ICHR volatility
ICHR Average Weekly Movement	10.0%
Semiconductor Industry Average Movement	8.7%
Market Average Movement	7.6%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.1%

Stable Share Price: ICHR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: ICHR's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	1,850	Jeff Andreson	https://www.ichorsystems.com

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company’s gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning.

Ichor Holdings Fundamentals Summary

How do Ichor Holdings's earnings and revenue compare to its market cap?
ICHR fundamental statistics
Market Cap	US$1.06b
Earnings (TTM)	US$62.97m
Revenue (TTM)	US$1.17b

16.8x

P/E Ratio

0.9x

P/S Ratio

Is ICHR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ICHR income statement (TTM)
Revenue	US$1.17b
Cost of Revenue	US$981.21m
Gross Profit	US$191.54m
Other Expenses	US$128.57m
Earnings	US$62.97m

Last Reported Earnings

Jul 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.19
Gross Margin	16.33%
Net Profit Margin	5.37%
Debt/Equity Ratio	56.6%

How did ICHR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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 ICHR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ICHR. This is calculated by dividing ICHR's market cap by their current preferred multiple.
What is ICHR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.06b

ICHR 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	1.2x
Enterprise Value/EBITDA	11.5x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

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

ICHR PE Ratio vs Peers

The above table shows the PE ratio for ICHR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24.7x
VECO Veeco Instruments	29.4x	18.8%	US$1.2b
ACMR ACM Research	34.7x	24.9%	US$1.1b
COHU Cohu	15.1x	-9.4%	US$1.4b
CAMT Camtek	19.6x	8.0%	US$1.3b
ICHR Ichor Holdings	16.8x	18.6%	US$1.1b

Price-To-Earnings vs Peers: ICHR is good value based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: ICHR is good value based on its Price-To-Earnings Ratio (16.8x) compared to the US Semiconductor industry average (21.7x)

Price to Earnings Ratio vs Fair Ratio

What is ICHR'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.

ICHR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.8x
Fair PE Ratio	21.3x

Price-To-Earnings vs Fair Ratio: ICHR is good value based on its Price-To-Earnings Ratio (16.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.3x).

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate ICHR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ICHR's fair value for valuation analysis.

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 less than 20% higher than the current share price.

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Future Growth

How is Ichor Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

18.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICHR's forecast earnings growth (18.6% per year) is above the savings rate (1.9%).

Earnings vs Market: ICHR's earnings (18.6% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: ICHR's revenue (6% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: ICHR's revenue (6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ICHR's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Ichor Holdings 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

4.7%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: ICHR's current net profit margins (5.4%) are lower than last year (6%).

Past Earnings Growth Analysis

Earnings Trend: ICHR's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: ICHR's earnings growth over the past year (3.1%) is below its 5-year average (4.7% per year).

Earnings vs Industry: ICHR earnings growth over the past year (3.1%) underperformed the Semiconductor industry 56.1%.

Return on Equity

High ROE: ICHR's Return on Equity (11.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Ichor Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: ICHR's short term assets ($500.5M) exceed its short term liabilities ($198.9M).

Long Term Liabilities: ICHR's short term assets ($500.5M) exceed its long term liabilities ($329.5M).

Debt to Equity History and Analysis

Debt Level: ICHR's net debt to equity ratio (48%) is considered high.

Reducing Debt: ICHR's debt to equity ratio has increased from 22.2% to 56.6% over the past 5 years.

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

Interest Coverage: ICHR's interest payments on its debt are well covered by EBIT (13x coverage).

Balance Sheet

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Dividend

What is Ichor Holdings's 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

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ICHR'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 ICHR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ICHR'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 ICHR has not reported any payouts.

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

Jeff Andreson (60 yo)

2.58yrs

Tenure

US$3,646,356

Compensation

Mr. Jeffrey S. Andreson, also known as Jeff, has been the Chief Executive Officer of Ichor Holdings, Ltd. since January 6, 2020 and has been its Executive Director since February 11, 2020. Mr. Andreson ser...

CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.65M) is about average for companies of similar size in the US market ($USD3.83M).

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

Leadership Team

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

Board Members

Experienced Board: ICHR's board of directors are considered experienced (3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: ICHR insiders have only sold shares 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	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/07/01
Annual Earnings	2021/12/31