Amkor (AMKR) AI Stock Analysis

• Market Cap: $5.03B
• Dividend Yield: 1.56%
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 2.25
• Revenue Growth: -2.85%
• EPS Growth: -1.90%
• Country: US
• Employees: 28,700
• Sector: Technology
• Sector Strength: 48
• Industry: Semiconductors and Equipment
• EPS (TTM): 1.43
• Shares Outstanding: 246,731,690
• 10 Day Avg. Volume: 1,983,412
• 30 Day Avg. Volume: 1,928,813
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.78
• Price to Cash Flow (P/CF): 7.60
• 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: $29.66
• Price Target Upside: 43.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Amkor's overall score reflects strong financial management and strategic initiatives in advanced packaging, offset by revenue declines and market challenges. Technical indicators suggest a cautious approach, while valuation metrics indicate a fairly valued stock amid industry headwinds.

Positive Factors

Market Position and Growth

Amkor is poised to benefit from the semiconductor recovery and is well-positioned to outpace industry growth by driven by its differentiated advanced technology/IP portfolio, continued outsourcing demand trends, customer share gains, and geographical positioning.

Technology and Product Differentiation

Amkor’s strong technology/product differentiation in advanced packaging solutions is leveraged to the fast-growing AI market.

Negative Factors

Revenue Decline and Market Weakness

Amkor reported slightly lower revenues, reflecting challenging macro demand trends combined with the impact of content loss for the iPhone 16.

Amkor Business Overview & Revenue Model

Company Description

Amkor Technology, Inc. (AMKR) is a leading global provider in the semiconductor industry, specializing in outsourced semiconductor packaging and test services. The company operates in sectors such as communications, consumer electronics, computing, automotive, and industrial. Amkor offers a wide range of advanced packaging and test solutions, including chip-scale packaging, wafer-level packaging, and system-in-package technologies, catering to the growing demand for miniaturization and performance enhancement in electronic devices.

How the Company Makes Money

Amkor makes money by offering semiconductor packaging and testing services to integrated device manufacturers, fabless semiconductor companies, and contract foundries. The company generates revenue from the fees charged for its packaging services, which involve the assembly of semiconductor devices into packages that protect them from physical damage and facilitate their integration into electronic systems. Additionally, Amkor provides testing services to ensure the functionality and performance of semiconductor devices before they are integrated into final products. Key revenue streams include advanced packaging technologies, such as system-in-package and wafer-level packaging, which are critical for modern, high-performance electronics. The company also benefits from partnerships and collaborations with major semiconductor companies, which enhance its service offerings and expand its market reach.

Amkor Financial Statement Overview

Summary

Amkor demonstrates solid financial health with a strong balance sheet and effective cash flow management, despite a decline in revenue. The stable net profit margin and improved debt-to-equity ratio highlight financial resilience, while challenges in revenue and operational margins are noted.

Income Statement

Amkor's income statement shows a decline in total revenue from $7.09 billion in 2022 to $6.32 billion in 2024. The gross profit margin slightly decreased, indicating pressure on cost management. The net profit margin remained stable at around 5.6%, showing resilience in profitability despite revenue declines. The EBIT and EBITDA margins have seen reductions, reflecting operational challenges. However, the company maintains a solid profitability position compared to industry norms.

Balance Sheet

Amkor's balance sheet is robust with an improving equity position, as stockholders' equity increased from $3.67 billion in 2022 to $4.15 billion in 2024. The debt-to-equity ratio improved, signaling better leverage management, while the equity ratio has increased to 59.8%, showing a strong capital structure. Return on equity remains steady, reflecting consistent shareholder value creation.

Cash Flow

Amkor's cash flow statement highlights a strong operating cash flow of $1.09 billion in 2024, ensuring liquidity and operational efficiency. Free cash flow has improved significantly, reflecting prudent capital expenditure management. The operating cash flow to net income ratio demonstrates efficient conversion of profits into cash, underpinning financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.51B	6.32B	6.50B	7.09B	6.14B	5.05B
	Gross Profit
1.26B	933.21M	943.15M	1.33B	1.23B	900.81M
	EBIT
816.69M	438.45M	470.29M	897.19M	763.43M	457.25M
	EBITDA
1.42B	1.09B	1.13B	1.53B	1.33B	961.25M
	Net Income Common Stockholders
692.82M	354.01M	359.81M	765.82M	643.00M	338.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.57B	1.65B	1.59B	1.24B	1.08B	831.77M
	Total Assets
6.69B	6.94B	6.77B	6.82B	6.04B	5.02B
	Total Debt
1.28B	1.30B	1.35B	1.38B	1.29B	1.24B
	Net Debt
166.08M	166.33M	231.85M	420.00M	459.42M	540.76M
	Total Liabilities
2.65B	2.76B	2.78B	3.12B	3.07B	2.67B
	Stockholders Equity
4.00B	4.15B	3.96B	3.67B	2.94B	2.33B
Cash Flow		Free Cash Flow
280.86M	345.07M	520.55M	190.46M	341.52M	217.01M
	Operating Cash Flow
1.13B	1.09B	1.27B	1.10B	1.12B	770.03M
	Investing Cash Flow
-1.15B	-800.32M	-951.91M	-1.01B	-943.88M	-638.71M
	Financing Cash Flow
62.71M	-260.43M	-149.21M	55.60M	-30.10M	-333.72M

Amkor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMKR, the sentiment is Negative. The current price of 20.72 is below the 20-day moving average (MA) of 22.32, below the 50-day MA of 24.26, and below the 200-day MA of 29.53, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 14.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMKR.

Amkor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRCX	81 Outperform	$98.12B	23.23	50.42%	1.13%	13.21%	27.25%
TSM	79 Outperform	$790.22B	25.55	29.96%	1.02%	29.98%	35.76%
ASX	70 Outperform	$21.68B	21.31	10.03%	2.36%	-0.62%	-1.08%
TXN	70 Outperform	$177.37B	37.50	28.25%	2.73%	-10.72%	-26.60%
KLAC	69 Neutral	$92.89B	29.40	96.81%	0.90%	12.19%	20.80%
AMKR	65 Neutral	$5.03B	14.28	8.53%	1.56%	-2.85%	-1.90%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%

Amkor Corporate Events

Amkor Expands Board with John Liu Appointment

Amkor Technology has appointed John Liu to its Board of Directors, expanding the board to eleven members. Liu brings extensive global experience in finance and strategic advisory roles, which is expected to contribute to Amkor’s focus on building long-term stakeholder value. Liu’s past roles include CEO of Essex Equity Capital Management and managing partner at Richmond Hill Investments, as well as holding significant positions at Greenhill & Co. and serving as an independent director at Whirlpool Corporation.