NASDAQ:AMKR is probably undervalued for the fundamentals it is displaying.

Last update: Jun 14, 2024

AMKOR TECHNOLOGY INC (NASDAQ:AMKR) has caught the attention of our stock screener as a great value stock. NASDAQ:AMKR excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Looking at the Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:AMKR scores a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of AMKR indicates a somewhat cheap valuation: AMKR is cheaper than 79.63% of the companies listed in the same industry.
AMKR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMKR is cheaper than 89.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.00, AMKR is valued a bit cheaper.
94.44% of the companies in the same industry are more expensive than AMKR, based on the Enterprise Value to EBITDA ratio.
90.74% of the companies in the same industry are more expensive than AMKR, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AMKR has a very decent profitability rating, which may justify a higher PE ratio.
AMKR's earnings are expected to grow with 30.44% in the coming years. This may justify a more expensive valuation.

Profitability Examination for NASDAQ:AMKR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:AMKR was assigned a score of 6 for profitability:

The Return On Assets of AMKR (5.58%) is better than 63.89% of its industry peers.
AMKR's Return On Equity of 9.34% is fine compared to the rest of the industry. AMKR outperforms 64.81% of its industry peers.
AMKR has a better Return On Invested Capital (7.55%) than 70.37% of its industry peers.
The last Return On Invested Capital (7.55%) for AMKR is well below the 3 year average (12.46%), which needs to be investigated, but indicates that AMKR had better years and this may not be a problem.
AMKR's Profit Margin has improved in the last couple of years.
In the last couple of years the Operating Margin of AMKR has grown nicely.

A Closer Look at Health for NASDAQ:AMKR

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:AMKR has earned a 6 out of 10:

An Altman-Z score of 3.89 indicates that AMKR is not in any danger for bankruptcy at the moment.
AMKR has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as AMKR would need 2.36 years to pay back of all of its debts.
AMKR has a better Debt to FCF ratio (2.36) than 63.89% of its industry peers.
AMKR has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
AMKR has a Current Ratio of 2.34. This indicates that AMKR is financially healthy and has no problem in meeting its short term obligations.
AMKR has a Quick Ratio of 2.08. This indicates that AMKR is financially healthy and has no problem in meeting its short term obligations.

What does the Growth looks like for NASDAQ:AMKR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:AMKR boasts a 5 out of 10:

The Earnings Per Share has been growing by 22.01% on average over the past years. This is a very strong growth
AMKR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.54% yearly.
Based on estimates for the next years, AMKR will show a very strong growth in Earnings Per Share. The EPS will grow by 30.44% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of AMKR

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.