NASDAQ:AMKR: good value for what you're paying.

Discover AMKOR TECHNOLOGY INC (NASDAQ:AMKR)—an undervalued stock our stock screener has picked out. NASDAQ:AMKR demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Assessment of NASDAQ:AMKR

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:

• 72.48% of the companies in the same industry are more expensive than AMKR, based on the Price/Earnings ratio.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of AMKR indicates a rather cheap valuation: AMKR is cheaper than 84.40% of the companies listed in the same industry.
• AMKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.54, which is the current average of the S&P500 Index.
• 94.50% of the companies in the same industry are more expensive than AMKR, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, AMKR is valued cheaper than 88.07% of the companies in the same industry.
• The decent profitability rating of AMKR may justify a higher PE ratio.
• A more expensive valuation may be justified as AMKR's earnings are expected to grow with 30.44% in the coming years.

Understanding NASDAQ:AMKR's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:AMKR has achieved a 6:

• With a decent Return On Assets value of 5.58%, AMKR is doing good in the industry, outperforming 65.14% of the companies in the same industry.
• AMKR's Return On Equity of 9.34% is fine compared to the rest of the industry. AMKR outperforms 65.14% of its industry peers.
• AMKR's Return On Invested Capital of 7.55% is fine compared to the rest of the industry. AMKR outperforms 72.48% of its industry peers.
• The 3 year average ROIC (12.46%) for AMKR is well above the current ROIC(7.55%). The reason for the recent decline needs to be investigated.
• In the last couple of years the Profit Margin of AMKR has grown nicely.
• In the last couple of years the Operating Margin of AMKR has grown nicely.

How We Gauge Health for NASDAQ:AMKR

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:AMKR, the assigned 6 reflects its health status:

• An Altman-Z score of 4.15 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.
• With a decent Debt to FCF ratio value of 2.36, AMKR is doing good in the industry, outperforming 65.14% of the companies in the same industry.
• AMKR has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 2.34 indicates that AMKR has no problem at all paying 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.

Assessing Growth Metrics 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.
• The Earnings Per Share is expected to grow by 30.44% on average over the next years. This is a very strong growth
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of AMKR contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.