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

Last update: Jan 28, 2025

Our stock screening tool has pinpointed AMKOR TECHNOLOGY INC (NASDAQ:AMKR) as an undervalued stock. NASDAQ:AMKR maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Assessment of NASDAQ:AMKR

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:AMKR, the assigned 7 reflects its valuation:

84.26% of the companies in the same industry are more expensive than AMKR, based on the Price/Earnings ratio.
AMKR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, AMKR is valued cheaper than 90.74% of the companies in the same industry.
AMKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.37.
Based on the Enterprise Value to EBITDA ratio, AMKR is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMKR is valued cheaper than 94.44% 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 21.61% in the coming years.

Profitability Analysis for NASDAQ:AMKR

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:AMKR, the assigned 6 is noteworthy for profitability:

AMKR has a better Return On Assets (5.21%) than 64.81% of its industry peers.
The Return On Equity of AMKR (8.79%) is better than 62.96% of its industry peers.
AMKR's Return On Invested Capital of 7.25% is fine compared to the rest of the industry. AMKR outperforms 71.30% of its industry peers.
The 3 year average ROIC (12.46%) for AMKR is well above the current ROIC(7.25%). The reason for the recent decline needs to be investigated.
In the last couple of years the Profit Margin of AMKR has grown nicely.
With a decent Operating Margin value of 7.18%, AMKR is doing good in the industry, outperforming 60.19% of the companies in the same industry.
In the last couple of years the Operating Margin of AMKR has grown nicely.

Health Insights: NASDAQ:AMKR

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:AMKR scores a 5 out of 10:

An Altman-Z score of 3.11 indicates that AMKR is not in any danger for bankruptcy at the moment.
The Debt to FCF ratio of AMKR is 2.70, which is a good value as it means it would take AMKR, 2.70 years of fcf income to pay off all of its debts.
AMKR's Debt to FCF ratio of 2.70 is fine compared to the rest of the industry. AMKR outperforms 69.44% of its industry peers.
AMKR has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
AMKR has a Current Ratio of 2.06. This indicates that AMKR is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Growth for NASDAQ:AMKR

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:AMKR has received a 5 out of 10:

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.
Measured over the past years, AMKR shows a quite strong growth in Revenue. The Revenue has been growing by 8.54% on average per year.
The Earnings Per Share is expected to grow by 21.61% on average over the next years. This is a very strong growth

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

Keep in mind

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.