Alright, let’s dive into the wild and wonderful world of Amkor, where chips and semiconductors do their funky dance. You might not have Amkor Technology (Nasdaq: AMKR) on your radar. I mean, seriously, who does? But trust me, these guys are shaking up the semiconductor scene like nobody’s business.
Picture this: Amkor is the big dog in OSAT—outsourced semiconductor assembly and test services. They’re like the backstage crew for tech giants, making sure everything runs without a hitch. They dabble in all sorts of industries—communications, computing, automotive, you name it.
Now, let’s talk numbers, because that’s where things get spicy. 2024 didn’t exactly go as planned. They raked in $6.3 billion in net sales, which sounds fancy until you realize it’s a 3% drop from the previous year. Ouch. Computers were on fire, but guess what? Automotive and communications decided to take a nap. Fourth quarter? A bit rough. Revenue dipped from $1.8 billion to $1.6 billion. Earnings per share skidded from $0.48 to $0.43. Not the best party ever.
But don’t count them out! The fortress that is Amkor stays strong. They made a cool $354 million in net income with a chunky free cash flow of $359 million. Management is feeling gutsy, bumping up dividends and throwing in a $0.41 special dividend. Yeah, they’ve still got faith.
Their financial backbone is no joke, either—$1.6 billion in cash and investments, stacked against $1.2 billion in debt. Like, they know what they’re doing.
Now, let’s hold our breath and peek at that stock chart. It’s like a theme park ride—hit almost $43 last July, then whoosh, down over 60% to about $16 now. That’s some whiplash for you.
Throw Amkor into The Value Meter and you’ll see something curious. Their EV/NAV ratio is chilling at 0.83, an eyebrow-raising 85% off from the usual 5.72 others are sipping on. Sounds like a bargain, right? But wait, there’s a catch: their cash conversion game isn’t as strong. Their free cash flow is only 2.08% of net assets. It’s like having a toolbox but only using one wrench—inefficient, you know?
So there you have it, readers! Amkor sits comfortably as “Appropriately Valued,” doing the cha-cha between rock-bottom asset valuations and meh cash conversion.
Got a stock you’re curious about? Drop those ticker symbols in the comments. Let’s run them through The Value Meter next!
