Investors should take notice of NASDAQ:AMKR—it offers a great deal for the fundamentals it presents.

Last update: Aug 21, 2024

Our stock screener has singled out AMKOR TECHNOLOGY INC (NASDAQ:AMKR) as a stellar value proposition. NASDAQ:AMKR not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Analysis for NASDAQ:AMKR

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:AMKR has earned a 7 for valuation:

78.90% of the companies in the same industry are more expensive than AMKR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AMKR to the average of the S&P500 Index (29.62), we can say AMKR is valued slightly cheaper.
87.16% of the companies in the same industry are more expensive than AMKR, based on the Price/Forward Earnings ratio.
AMKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.91.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMKR indicates a rather cheap valuation: AMKR is cheaper than 94.50% of the companies listed in the same industry.
89.91% of the companies in the same industry are more expensive than AMKR, based on the Price/Free Cash Flow ratio.
AMKR's 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 31.03% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability for NASDAQ:AMKR?

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

AMKR has a Return On Assets of 5.48%. This is in the better half of the industry: AMKR outperforms 67.89% of its industry peers.
The Return On Equity of AMKR (9.28%) is better than 64.22% of its industry peers.
AMKR has a better Return On Invested Capital (7.66%) than 73.39% of its industry peers.
The last Return On Invested Capital (7.66%) 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.
In the last couple of years the Profit Margin of AMKR has grown nicely.
Looking at the Operating Margin, with a value of 7.50%, AMKR is in the better half of the industry, outperforming 61.47% of the companies in the same industry.
In the last couple of years the Operating Margin of AMKR has grown nicely.

Exploring NASDAQ:AMKR's Health

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 5 reflects its health status:

An Altman-Z score of 3.61 indicates that AMKR is not in any danger for bankruptcy at the moment.
AMKR has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as AMKR would need 2.30 years to pay back of all of its debts.
AMKR's Debt to FCF ratio of 2.30 is fine compared to the rest of the industry. AMKR outperforms 66.97% of its industry peers.
AMKR has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
AMKR has a Current 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

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:AMKR was assigned a score of 5 for growth:

Measured over the past years, AMKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.01% on average per year.
The Revenue has been growing by 8.54% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 31.03% 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.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.