Amkor Technology Inc. (NASDAQ: AMKR) – Stock Analysis
1. Executive Summary
- Company Name: Amkor Technology Inc.
- Ticker: AMKR
- Sector: Semiconductor Packaging & Testing (OSAT)
- Investment Recommendation: Hold – Solid financials and global presence, but recent revenue decline and stock pullback limit near-term upside.
2. Company Overview
- Business Model: Provides outsourced semiconductor assembly and test (OSAT) services globally; partners with major semiconductor firms worldwide.
- Industry Position: Among top global OSAT providers; leading market share across advanced and mainstream packaging solutions.
- Key Products/Services: Flip chip, wafer-level packaging, system-in-package (SiP), power modules.
- Management: Giel Rutten (CEO).
3. Financial Analysis
- Revenue Growth: FY2024 revenue: $6.32 billion, down 2.85% YoY; Q1 2025 revenue: $1.32 billion, down 18.88% QoQ.
- Profitability: FY2024 net income: $354 million, down 1.61% YoY.
- EPS: FY2024 diluted EPS: $1.43; Q1 2025 net income: $21.13 million.
- Balance Sheet: Total assets: $4.19 billion; total liabilities: $1.40 billion → debt ratio: 0.33.
- Cash Flow: Cash & equivalents: $1.56 billion; net cash: $160 million.
4. Stock Performance
- Current Price: $18.07 (as of May 5, 2025).
- 52-Week Range: $14.03 – $44.86.
- Market Cap: ~$4.48 billion.
- Beta: 1.89 → higher volatility than market.
- Recent Trend: Stock down ~40% over the past year; slight rebound after Q1 earnings.
5. Valuation Analysis
- P/E Ratio: ~14.17x, near industry average.
- P/S Ratio: ~0.71x, indicates undervaluation relative to revenue.
- P/B Ratio: ~1.08x, fair asset valuation.
- DCF Analysis: Price near intrinsic value.
- Peer Comparison: Financially solid, with strong global customer base vs. peers.
6. Industry & Market Analysis
- Industry Trends: Growing semiconductor demand driven by AI, EVs, 5G fuels packaging/testing services.
- Market Share: Maintains leading OSAT market position; expanding share via customer partnerships.
- Macroeconomic Factors: Supply chain risks, geopolitical factors mitigated by diversified global operations.
7. Risk Analysis
- Market Risk: Semiconductor cycle volatility could affect revenue.
- Financial Risk: Recent declines in revenue/profitability raise margin concerns.
- Regulatory Risk: Exposure to global trade policies and export controls.
- Geopolitical Risk: Tensions or disruptions may impact operations.
8. Growth Catalysts
- New Products/Services: Advanced packaging for AI, EV, 5G drives long-term growth.
- Expansion Plans: Expanding manufacturing in Vietnam to boost capacity.
- M&A Activity: No major recent acquisitions.
- Industry Trend: Outsourced advanced packaging demand rising with tech innovation.
9. Analyst Sentiment
- Consensus Rating: 4 Buy; 3 Hold; 1 Sell (out of 8 analysts).
- Target Price: Average $23.00 → ~27% upside from current price.
- Recent News: Some target price downgrades post-Q1 earnings; cautious short-term outlook.
10. Conclusion
Amkor Technology Inc. offers solid global positioning, stable financials, and exposure to AI/EV/5G growth,
✅ but faces short-term headwinds from declining revenue and macro risks.
👉 Investment Recommendation: Hold – Better suited for long-term investors; monitor for semiconductor cycle recovery and customer demand improvements.
11. Appendix
- Stock Chart: ~40% decline over past year; peaked at $44.86.
- Financial Summary:
- FY2024 revenue: $6.32B
- Net income: $354M
- EPS: $1.43
- Cash: $1.56B
- Debt ratio: 0.33
- Ownership: ~80% institutional ownership.