Amkor Technology Inc (AMKR-Q)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The outlook for AMKR in 2024 is generally positive, as it operates in the semiconductor space and can benefit from rising chip demand, AI adoption, and other emerging technologies. Analysts expect sales of $6.86B in FY2024, a 6.6% year-over-year increase, and EPS of $2.16, a 55% increase for the year. 

AMKR pays a small yield of 1%, and has demonstrated good sales growth, although somewhat lumpy, but good profit margin expansion. For a company in the semiconductor space, it trades at a reasonable valuation of 1.1X forward sales and 16.7X forward P/E. It has a strong balance sheet, a good cash position, and for a moderately growing semi stock with a conservative balance sheet, we think it looks good. We do not expect significant price appreciation from the name, but it has strong fundamentals and its balance sheet can provide some downside protection. We would be comfortable buying the name here, or slightly lower in the high $20's range.
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Very volatile. Treat as a trading stock. Was hit based on poor guidance and poor margins. 8 X earnings.