AAC Technologies (AACAY) AI Stock Analysis

• Market Cap: $6.66B
• Dividend Yield: 0.55%
• Average Volume (3M): 651.00
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.42
• Revenue Growth: 32.02%
• EPS Growth: 142.56%
• Country: US
• Employees: 37,273
• Sector: Technology
• Sector Strength: 98
• Industry: Communication Equipment
• EPS (TTM): 0.15
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 656
• 30 Day Avg. Volume: 651
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.81
• Enterprise Value/Ebitda: 1.99
• 1Y Price Target: $5.50
• Price Target Upside: 1.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $5.50 ▲(1.29% Upside)

AAC Technologies demonstrates strong financial performance with significant revenue and profit growth, supporting a high score. However, technical analysis and valuation scores are moderate, reflecting limited stock momentum and slightly high valuation. The absence of earnings call insights and corporate events data does not impact the score. The overall outlook is positive, driven by financial strength, yet tempered by technical and valuation considerations.

AAC Technologies Business Overview & Revenue Model

Company Description

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. It operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, and Micro Electro-Mechanical System (MEMS) Components segments. The Acoustics Product segment provides acoustics products for smartphone and automotive, as well as wearables, tablets, and notebook markets. The Electromagnetic Drives and Precision Mechanics segment manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, smart glasses, game controllers, virtual reality/augmented reality (AR) controllers, and bone conduction headphones. This segment also offers precision mechanics comprising metal casing, bottom and parts for tablets, wearables, and notebooks products. The Optics Products segment provides plastic, front-view, surround-view, and occupant monitoring system and driver monitoring system vehicle lenses; camera modules; and voice coil motor and optical image stabilizer solutions. The MEMS Business segment offers MEMS microphone products for true wireless stereo earphones, smart speakers, tablets, and automotive markets. The company also offers research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services. AAC Technologies Holdings Inc. has a strategic partnership with Dispelix for providing AR and mixed reality solutions. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

AAC Technologies generates revenue primarily through the sale of its miniaturized technology components to major consumer electronics manufacturers. Its key revenue streams include acoustic components such as speakers and receivers, electromagnetic drives used in haptics and vibrational applications, and optics products including camera lenses. The company also earns from MEMS components like microphones and sensors. A significant portion of its revenue is derived from partnerships with large smartphone manufacturers, who integrate AAC's components into their devices. AAC Technologies' emphasis on research and development, coupled with strategic partnerships, helps maintain its competitive edge and contributes to its financial performance.

AAC Technologies Financial Statement Overview

Summary

AAC Technologies presents a solid financial performance with strong revenue and profit growth, supported by efficient operations and a stable balance sheet. The company maintains a healthy cash flow, but careful management of debt levels is crucial for sustaining financial stability.

Income Statement

AAC Technologies has shown strong revenue growth, with a significant increase of 33.8% from 2023 to 2024. The gross profit margin is robust at 22.1% and the net profit margin improved to 6.6% in 2024, indicating efficient cost management and profitability. The EBIT and EBITDA margins are healthy, standing at 8.4% and 20.3% respectively, showcasing operational efficiency. However, EBIT margin could be improved further to enhance profitability.

Balance Sheet

The company's balance sheet reflects a sound financial position, with a debt-to-equity ratio of 0.46, indicating moderate leverage. The return on equity (ROE) is commendable at 7.9%, suggesting effective use of shareholders' capital. The equity ratio stands at 48.7%, showing a balanced capital structure. Although the company maintains a solid equity base, the relatively high total debt requires careful monitoring to avoid financial strain.

Cash Flow

AAC Technologies demonstrates a strong cash flow position with a free cash flow of 2.9 billion in 2024, marking a recovery from previous years. The operating cash flow to net income ratio is positive, indicating good cash generation relative to profits. The free cash flow to net income ratio is 1.63, showing adequate cash coverage for net income. The company has consistently improved its cash flow generation, but continued focus on capital expenditure efficiency will be beneficial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.42B	27.33B	20.42B	20.63B	17.67B	17.14B
Gross Profit	3.45B	6.04B	3.45B	3.78B	4.36B	4.23B
EBITDA	3.13B	5.55B	4.18B	4.25B	4.02B	3.65B
Net Income	740.37M	1.80B	740.37M	821.30M	1.32B	1.51B
Balance Sheet
Total Assets	38.91B	46.70B	38.91B	40.34B	42.02B	38.91B
Cash, Cash Equivalents and Short-Term Investments	6.83B	7.54B	6.83B	7.15B	6.05B	7.54B
Total Debt	9.58B	10.45B	9.58B	10.42B	10.50B	9.21B
Total Liabilities	16.54B	23.58B	16.54B	18.15B	19.52B	17.09B
Stockholders Equity	21.88B	22.75B	21.88B	21.66B	21.81B	21.16B
Cash Flow
Free Cash Flow	3.27B	2.93B	3.09B	2.45B	-1.17B	-656.62M
Operating Cash Flow	4.63B	5.20B	4.63B	4.37B	2.18B	3.59B
Investing Cash Flow	-1.51B	-3.49B	-1.51B	-2.35B	-4.25B	-3.26B
Financing Cash Flow	-3.17B	-1.02B	-3.17B	-1.44B	632.55M	2.58B

AAC Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACAY, the sentiment is Positive. The current price of 5.43 is above the 20-day moving average (MA) of 5.22, above the 50-day MA of 5.10, and above the 200-day MA of 5.05, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 89.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AACAY.

AAC Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AACAY	73 Outperform	$6.66B	26.38	8.06%	0.55%	32.02%	142.56%
CRDO	73 Outperform	$20.67B	432.04	8.54%	―	126.34%	―
CIEN	71 Outperform	$13.44B	132.41	3.71%	―	2.86%	-29.92%
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
LITE	65 Neutral	$8.07B	―	-42.79%	―	3.58%	-22.74%
VIAV	58 Neutral	$2.44B	71.16	4.76%	―	8.39%	―
SATS	46 Neutral	$7.79B	―	-1.60%	―	-35.86%	85.81%