AAC Technologies (AACAY) AI Stock Analysis

• Market Cap: $8.03B
• Dividend Yield: 0.16%
• Average Volume (3M): 12.97K
• Price to Earnings (P/E): 50.5
• Beta (1Y): 1.73
• Revenue Growth: 5.80%
• EPS Growth: 77.38%
• Country: US
• Employees: N/A
• Sector: Technology
• Sector Strength: 47
• Industry: Hardware & Equipment
• EPS (TTM): 0.13
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 15,451
• 30 Day Avg. Volume: 12,970
• PEG Ratio: 0.65
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.92
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

AAC Technologies' overall stock score is supported by a solid financial foundation, particularly in cash flow and balance sheet strength. However, the technical analysis reflects only moderate bullish momentum, and valuation appears stretched with a high P/E ratio. The lack of detailed guidance or sentiment from the earnings call adds uncertainty to the near-term outlook. Improvements in revenue growth and profitability are necessary to enhance the stock's appeal.

AAC Technologies Business Overview & Revenue Model

Company Description

AAC Technologies Holdings Inc. (AACAY) is a leading global provider of advanced miniaturized technology components. The company operates primarily in the consumer electronics sector, offering a wide range of products including acoustic components, electromagnetic drives, and precision mechanics. AAC Technologies is renowned for its innovative solutions in microelectronics, providing essential components for smartphones, wearables, tablets, and other smart devices.

How the Company Makes Money

AAC Technologies makes money through the design, manufacture, and sale of high-performance components used in consumer electronics. Its key revenue streams include acoustic components such as speakers and microphones, haptic and vibration motors, optics products, and RF antennas. The company collaborates closely with major global electronics manufacturers, supplying them with critical components required for a variety of devices. This strong customer base, coupled with its continuous innovation and expansion into new technology areas like optics, ensures a steady flow of revenue. Furthermore, AAC Technologies benefits from strategic partnerships and investments in research and development to maintain its competitive edge and address evolving market demands.

AAC Technologies Financial Statement Overview

Summary

AAC Technologies shows a balanced financial position with strengths in cash flow management and a solid equity base. However, challenges persist in revenue growth and net profitability. The company maintains a conservative leverage profile, contributing to its financial stability. Continuous focus on improving operational efficiency and revenue growth could enhance future financial performance.

Income Statement

The income statement shows mixed results. The gross profit margin for 2023 is 16.9%, indicating decent profitability. The net profit margin for the same period is 3.6%, which is relatively low, suggesting challenges in cost management. Revenue growth has been negative in recent years, with a decline of 1% from 2022 to 2023. The EBIT margin is 2.2%, and the EBITDA margin is 20.5% for 2023, highlighting strong operational earnings relative to revenue, but the EBIT margin suggests pressure on core profitability.

Balance Sheet

The balance sheet reflects a stable position with a debt-to-equity ratio of 0.44, indicating a conservative approach to leverage. Return on equity is 3.4% for 2023, which is modest and implies room for improved efficiency in using equity capital. The equity ratio is 56.2%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals positive trends. The operating cash flow to net income ratio is 6.3 in 2023, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio is 4.2, reflecting efficient cash conversion. However, free cash flow growth has been volatile, with a notable increase of 26.4% from 2022 to 2023, demonstrating improvement in cash flow management.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
20.42B	20.63B	17.67B	17.14B	17.88B
	Gross Profit
3.45B	3.78B	4.36B	4.23B	5.11B
	EBIT
457.10M	745.40M	1.49B	1.35B	2.47B
	EBITDA
4.18B	4.25B	4.02B	3.65B	4.52B
	Net Income Common Stockholders
740.37M	821.30M	1.32B	1.51B	2.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.83B	7.15B	6.05B	7.54B	5.51B
	Total Assets
38.91B	40.34B	42.02B	38.91B	34.21B
	Total Debt
9.58B	10.42B	10.50B	9.21B	8.82B
	Net Debt
2.76B	3.61B	4.45B	1.67B	3.31B
	Total Liabilities
16.54B	18.15B	19.52B	17.09B	14.85B
	Stockholders Equity
21.88B	21.66B	21.81B	21.16B	19.35B
Cash Flow		Free Cash Flow
3.09B	2.45B	-1.17B	-656.62M	1.03B
	Operating Cash Flow
4.63B	4.37B	2.18B	3.59B	3.84B
	Investing Cash Flow
-1.51B	-2.35B	-4.25B	-3.26B	-3.39B
	Financing Cash Flow
-3.17B	-1.44B	632.55M	2.58B	255.00M

AAC Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACAY, the sentiment is Positive. The current price of 6.7 is above the 20-day moving average (MA) of 6.41, above the 50-day MA of 5.79, and above the 200-day MA of 4.50, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 62.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AACAY.

AAC Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	76 Outperform	$172.86B	16.70	41.96%	2.12%	12.13%	36.17%
AVGO	75 Outperform	$895.91B	91.90	14.85%	1.14%	40.30%	-22.79%
ADI	71 Outperform	$102.12B	65.66	4.43%	1.79%	-19.28%	-44.00%
AACAY	68 Neutral	$8.03B	50.54	5.18%	0.16%	5.80%	77.38%
TXN	65 Neutral	$164.40B	34.77	28.25%	2.94%	-10.72%	-26.60%
SWKS	63 Neutral	$11.39B	21.72	8.34%	4.06%	-12.91%	-42.12%
Sector *	58 Neutral	$21.91B	10.52	-19.51%	2.38%	4.81%	-25.47%