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ACM Research (ACMR)
NASDAQ:ACMR
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ACM Research
(NASDAQ:ACMR)
81Outperform
Positive Factors
Earnings
ACM again reported another strong, upside quarter with record sales and guided to growth in 2025.
Financial Performance
ACMR closed 2024 with 40% revenue growth and 63% shipment growth.
Revenue Guidance
ACM's 2025 Revenue Guidance Projects 18% Year-Over-Year Growth.
Negative Factors
Entity List
Now that the company has been added to the entity list, management thinks it might stay there for a while.
Sustainability Concerns
Such a bullish outlook reflects management's high confidence in 2025, but could raise more questions regarding the sustainability.
ACM Research (ACMR) vs. S&P 500 (SPY)
Market Cap
$1.70B
Dividend YieldN/A
Average Volume (3M)1.91M
Price to Earnings (P/E)17.7
Beta (1Y)2.00
Revenue Growth40.23%
EPS Growth29.40%
CountryUS
Employees1,590
SectorTechnology
Sector Strength49
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)1.52
Shares Outstanding58,107,895
10 Day Avg. Volume1,654,542
30 Day Avg. Volume1,908,293
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)N/A
Price to Sales (P/S)2.33
Price to Cash Flow (P/CF)35.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.66Price Target Upside25.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
ACM Research Business Overview & Revenue Model
Company DescriptionACM Research, Inc. (ACMR) is a leading provider of advanced, innovative wafer processing solutions for the semiconductor industry. The company specializes in developing and manufacturing equipment that improves the manufacturing processes of semiconductor devices, with a focus on cleaning technologies. Their core products include single-wafer wet cleaning equipment used in advanced semiconductor fabrication processes, such as TSV, MEMS, and CIS, which are integral to the production of chips used across various technology sectors.
How the Company Makes MoneyACM Research generates revenue primarily through the sale of its semiconductor processing equipment. The company designs and sells a range of custom equipment tailored to meet the specific needs of semiconductor manufacturers, enabling them to enhance the efficiency and quality of their production processes. Key revenue streams include the sale of single-wafer wet cleaning machines and related services such as spare parts, service contracts, and support. Additionally, ACM Research benefits from strategic partnerships with semiconductor foundries and manufacturers, which help to secure repeat business and expand its market presence. The company's financial performance is significantly influenced by the capital expenditure cycles of its customers, the global demand for semiconductors, and technological advancements in the semiconductor industry.
ACM Research Financial Statement Overview
Summary
ACM Research demonstrates robust financial performance with strong revenue and profitability growth. Income statement highlights include a significant revenue increase and improved profit margins. The balance sheet shows strong equity and low leverage, while cash flow has improved despite past challenges.Income Statement
ACM Research has demonstrated strong revenue growth, with a significant increase from $107.5M in 2019 to $782.1M in 2024. The gross profit margin improved to 50.1%, indicating efficient cost management. Net profit margin rose to 13.2%, reflecting improved profitability. Both EBIT and EBITDA margins are strong at 19.3%, showing effective operational performance.85
Very Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.04, indicating low leverage and financial risk. The equity ratio of 48.7% signifies strong equity financing. Return on equity is robust at 11.5%, showcasing effective utilization of equity.78
Positive
Cash Flow
ACM Research has improved its free cash flow from negative in earlier years to $69.99M in 2024, indicating better cash generation. The operating cash flow to net income ratio is 1.47, showing efficient conversion of income to cash. However, past negative free cash flow highlights previous cash management challenges.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 782.12M | 557.72M | 388.83M | 259.75M | 156.62M | Gross Profit |
| 391.55M | 276.21M | 183.62M | 114.86M | 69.60M | EBIT |
| 151.00M | 95.84M | 59.03M | 38.70M | 6.65M | EBITDA |
| 180.42M | 126.99M | 74.38M | 41.05M | 22.55M | Net Income Common Stockholders |
| 103.63M | 77.35M | 39.26M | 37.76M | 18.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 444.10M | 283.93M | 338.65M | 592.57M | 100.00M | Total Assets |
| 1.86B | 1.49B | 1.24B | 1.05B | 341.26M | Total Debt |
| 38.79M | 99.10M | 79.50M | 39.14M | 50.10M | Net Debt |
| -368.66M | -82.99M | -168.45M | -523.93M | -21.67M | Total Liabilities |
| 759.82M | 564.75M | 423.33M | 240.51M | 133.09M | Stockholders Equity |
| 904.63M | 767.39M | 674.86M | 676.20M | 141.15M |
| Cash Flow | Free Cash Flow | |||
| 69.99M | -139.66M | -154.71M | -49.80M | -69.03M | Operating Cash Flow |
| 152.45M | -75.32M | -62.19M | -40.09M | -13.55M | Investing Cash Flow |
| -11.96M | -6.75M | -265.67M | -11.28M | -69.95M | Financing Cash Flow |
| 92.48M | 18.53M | 45.87M | 538.77M | 32.83M |
ACM Research Technical Analysis
Positive
26.87
Price Trends
22.97
Positive
20.04
Positive
20.04
Positive
Market Momentum
1.50
Positive
53.38
Neutral
42.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACMR, the sentiment is Positive. The current price of 26.87 is above the 20-day moving average (MA) of 26.84, above the 50-day MA of 22.97, and above the 200-day MA of 20.04, indicating a bullish trend. The MACD of 1.50 indicates Positive momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 42.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACMR.
ACM Research Risk Analysis
ACM Research disclosed 61 risk factors in its most recent earnings report. ACM Research reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ACM Research Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.70B | 17.65 | 12.40% | ― | 40.23% | 29.40% | |
78 Outperform | $97.35B | 23.05 | 50.42% | 1.13% | 13.21% | 27.25% | |
77 Outperform | $93.88B | 29.71 | 96.81% | 0.89% | 12.19% | 20.80% | |
76 Outperform | $123.59B | 19.90 | 35.19% | 1.05% | 4.45% | -10.01% | |
76 Outperform | $278.60B | 34.39 | 48.13% | 0.80% | 2.53% | -3.33% | |
73 Outperform | $14.15B | 26.35 | 20.29% | 0.55% | 5.52% | 16.59% | |
58 Neutral | $21.98B | 10.49 | -19.42% | 2.40% | 4.77% | -25.28% |
* Technology Sector Average
Performance Comparison
ACMR
ACM Research
26.87
-3.29
-10.91%
AMAT
Applied Materials
152.12
-54.60
-26.41%
ASML
ASML Holding
716.22
-255.76
-26.31%
KLAC
KLA
706.49
12.95
1.87%
LRCX
Lam Research
75.84
-20.24
-21.07%
TER
Teradyne
87.51
-20.96
-19.32%
ACM Research Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 17.13% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial growth and operational achievements, including revenue and profit increases, expansion of the product portfolio, and opening of new facilities. Despite these positives, challenges related to the addition to the Entity List and regulatory hurdles present concerns. However, the company's proactive measures to localize the supply chain and its optimistic outlook for future growth contribute to a generally positive sentiment.Highlights
Strong Revenue Growth
For the fourth quarter of 2024, ACM Research delivered $223 million in revenue, up 31%. For the fiscal year, revenue reached $782 million, up 40%.
Gross Margin Improvement
Gross margin was 49.8% for the fourth quarter and 50.4% for the full year. The gross margin target range was updated to 42% to 48% from the prior range of 40% to 45%.
Increased Operating Profit
Operating profit increased by 46% in the fourth quarter and 63% for the full year.
Cash Position and Dividends
The company ended the year with $259 million in net cash and time deposits. ACM Shanghai announced its intention to pay a dividend of 25% to 30% of net earnings over the next three years.
Expanding Product Portfolio
ACM Research expanded its product portfolio, addressing an $18 billion global market opportunity, with significant growth in cleaning and plating product lines.
New Facility Openings
ACM Research opened new production and R&D centers in Lingang and Oregon, enhancing their production capabilities and global customer base.
Lowlights
Entity List Addition
ACM Shanghai and ACM Korea were added to the U.S. Department of Commerce's Entity List, which may impact their ability to obtain components from the U.S.
Regulatory Challenges
The new U.S. Department of Commerce rules could restrict exports to ACM Shanghai and ACM Korea, potentially affecting operations in Mainland China.
Company Guidance
During the ACM Research Fiscal Fourth Quarter and Fiscal Year 2024 Earnings Conference Call held on February 26, 2025, the company provided an optimistic outlook for the upcoming year. They projected revenue for 2025 to be between $850 million and $950 million, representing a year-over-year growth of 15% at the midpoint. In 2024, ACM achieved a 40% increase in revenue, reaching $782.1 million, with $223.5 million coming in the fourth quarter alone. Their gross margin for 2024 was 50.4%, and they have updated their 2025 gross margin target range to 42%-48%. The company ended 2024 with $259 million in net cash and saw shipments grow by 63% to $973 million. ACM's impressive performance was driven by robust growth in their Single Wafer Cleaning, Tahoe, and Semi-Critical Cleaning product lines, and an enhanced market presence in Mainland China and globally. They also announced a dividend policy for ACM Shanghai, expecting dividends of 25%-30% of net earnings over the next three years. Despite challenges from U.S. export restrictions, the company remains confident about their supply chain localization efforts and ongoing global customer expansion.ACM Research Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
ACM Research Appoints Charlie Pappis to Board
Positive
Mar 18, 2025
ACM Research, Inc. announced the appointment of Charlie Pappis to its Board of Directors, effective March 15, 2025. Mr. Pappis, a veteran in the semiconductor industry with over 40 years of experience, will bring valuable insights to ACM’s growth strategy as the company aims to expand its investments and business operations in the U.S. His expertise aligns with ACM’s mission to become a key supplier of capital equipment to major global semiconductor companies, enhancing the company’s leadership and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.