ACM Research Inc (ACMR, Financial), a leading player in the semiconductors industry, has seen a significant shift in its stock performance over the past three months. The company's market cap stands at $1.15 billion, with its stock price currently at $19.22. Over the past week, the stock has seen a slight dip of -3.34%, but the overall trend over the past three months has been positive, with a substantial gain of 49.37%.
GF Value Indicates Undervaluation
According to the GF Value, a measure defined by GuruFocus.com that calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, ACM Research Inc's stock is significantly undervalued. The current GF Value stands at $57.73, a decrease from the past GF Value of $64.6. This shift from a possible value trap to a significantly undervalued status indicates a potential opportunity for investors.
ACM Research Inc: A Brief Overview
ACM Research Inc is a US-based company engaged in the semiconductors industry. The company's business involves developing, manufacturing, and selling single-wafer wet cleaning equipment, which 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.
Profitability Analysis
ACM Research Inc's Profitability Rank stands at 8/10, indicating a high level of profitability. The company's Operating Margin is 19.00%, better than 80.06% of companies in the industry. The 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. The company has been profitable for 7 out of the past 10 years, better than 50.79% of companies.
Growth Prospects
ACM Research Inc's Growth Rank is 9/10, indicating strong growth. The company's 3-year and 5-year revenue growth rates per share are 47.00% and 31.10% respectively, both of which are better than the majority of companies in the industry. The future 3-year to 5-year total revenue growth rate estimate is 26.79%, better than 91.61% of companies. The 3-year EPS without NRI growth rate is 21.40%, better than 44.49% of companies.
Top Holders of ACM Research Inc's Stock
The top two holders of ACM Research Inc's stock are HOTCHKIS & WILEY, holding 911210 shares (1.52%), and Steven Cohen (Trades, Portfolio), holding 10100 shares (0.02%).
Competitors in the Semiconductors Industry
ACM Research Inc's main competitors in the semiconductors industry are Ichor Holdings Ltd (market cap: $760.563 million), Indie Semiconductor Inc (market cap: $820.618 million), and Veeco Instruments Inc (market cap: $1.43 billion).
Conclusion
In conclusion, ACM Research Inc's stock performance, profitability, and growth prospects indicate a promising future for the company. Despite the recent dip, the stock's significant gain over the past three months, coupled with its undervalued status according to the GF Value, presents a potential opportunity for investors. The company's high profitability and growth ranks, along with its strong performance in terms of operating margin, ROE, ROA, and ROIC, further underscore its potential. However, investors should also consider the competitive landscape in the semiconductors industry.
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.
