ACM Research Inc (ACMR, Financial), a prominent player in the semiconductors industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by an impressive 47.01%, marking a notable gain from its previous position. As of October 10, 2023, the stock is trading at $19.23, with a market cap of $1.15 billion. This article aims to provide an in-depth analysis of ACMR's recent performance, profitability, growth, and competitive landscape.
Stock Performance Analysis
Over the past week, ACMR's stock price has seen a gain of 13.06%, contributing to the overall 47.01% increase over the past three months. The company's current GF Value stands at $56.98, significantly lower than its current stock price. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. This indicates that the stock is currently significantly undervalued. However, it's worth noting that the stock's GF Valuation three months ago was a possible value trap, suggesting investors should think twice before investing.
Company Overview
ACM Research Inc is a US-based company engaged in developing, manufacturing, and selling single-wafer wet cleaning equipment. This equipment is used by semiconductor manufacturers in numerous manufacturing steps to remove particles, contaminants, and other random defects to improve product yield in fabricating integrated circuits, or chips. The company's innovative solutions have positioned it as a key player in the semiconductors industry.
Profitability Analysis
ACMR's Profitability Rank is 8/10, indicating a high level of profitability. The company's Operating Margin is 19.00%, better than 80.19% of companies in the industry. Its ROE is 9.95%, ROA is 5.49%, and ROIC is 9.78%, all of which are better than the majority of companies in the industry. ACMR has also demonstrated profitability for 7 out of the past 10 years, better than 50.73% of companies.
Growth Analysis
ACMR's Growth Rank is 10/10, indicating a high level of growth. The company's 3-Year Revenue Growth Rate per Share is 47.00%, and its 5-Year Revenue Growth Rate per Share is 31.10%, both of which are better than the majority of companies in the industry. The company's future 3-year to 5-year total revenue growth rate estimate is 26.79%, and its 3-Year EPS without NRI Growth Rate is 21.40%, better than 44.56% of companies.
Major Stock Holders
The top two holders of ACMR stock are HOTCHKIS & WILEY, holding 911,210 shares (1.52%), and Steven Cohen (Trades, Portfolio), holding 10,100 shares (0.02%).
Competitive Landscape
ACMR operates in a competitive industry, with key competitors including Ichor Holdings Ltd (ICHR, $874.941 million market cap), Indie Semiconductor Inc (INDI, $880.729 million market cap), and Veeco Instruments Inc (VECO, $1.56 billion market cap).
Conclusion
In conclusion, ACM Research Inc's stock has shown impressive performance over the past three months, with a significant gain of 47.01%. The company's high profitability and growth ranks, coupled with its competitive position in the semiconductors industry, make it a potential candidate for value investors. However, investors should also consider the stock's current GF Valuation and past GF Valuation before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
