AAC Technologies (AACAY) AI Stock Analysis

• Market Cap: $6.10B
• Dividend Yield: 0.61%
• Average Volume (3M): 626.00
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.41
• Revenue Growth: 32.02%
• EPS Growth: 142.56%
• Country: US
• Employees: 37,273
• Sector: Technology
• Sector Strength: 91
• Industry: Communication Equipment
• EPS (TTM): 0.15
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 1,878
• 30 Day Avg. Volume: 626
• PEG Ratio: -0.60
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.43
• 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: $5.50
• Price Target Upside: 5.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $5.50 ▲(5.16%Upside)

AAC Technologies' strong financial performance is a significant strength, driven by robust revenue growth and efficient operations. However, mixed technical indicators and a high P/E ratio limit the stock's attractiveness. The absence of earnings call details and notable corporate events reduces the impact of qualitative factors in the assessment.

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 makes money primarily through the sale of its components to major global manufacturers of consumer electronics and mobile devices. The company's revenue model is driven by the production and supply of high-quality micro acoustic components, such as speakers and receivers, as well as haptic feedback devices and RF modules. Key revenue streams include contracts with leading smartphone and electronics brands that integrate AAC's products into their devices. Additionally, AAC Technologies capitalizes on strategic partnerships and collaborations with technology firms to innovate and expand its product offerings, thereby sustaining its competitive edge in the market. The company's earnings are also supported by its ability to adapt to industry trends and maintain a robust supply chain to meet the demands of its clients.

AAC Technologies Financial Statement Overview

Summary

AAC Technologies showcases strong revenue and profit growth with efficient operations and a stable balance sheet. Notable factors include a robust gross profit margin of 22.1% and a net profit margin of 6.6%. The balance sheet is sound with a debt-to-equity ratio of 0.46, though careful debt management is advised. Cash flow is strong, with a free cash flow of 2.9 billion, suggesting good cash generation and coverage for net income.

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	7.54B	7.54B	6.83B	7.15B	6.05B	7.54B
Total Debt	9.21B	10.45B	9.58B	10.42B	10.50B	9.21B
Total Liabilities	17.09B	23.58B	16.54B	18.15B	19.52B	17.09B
Stockholders Equity	21.16B	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: 5.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 5.23 is above the 20-day moving average (MA) of 5.12, above the 50-day MA of 4.96, and above the 200-day MA of 4.93, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 58.49 is Neutral, 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
CRDO	76 Outperform	$16.02B	350.16	8.54%	―	126.34%	―
CIEN	73 Outperform	$11.21B	109.28	3.71%	―	2.86%	-29.92%
AACAY	69 Neutral	$6.10B	24.16	8.06%	0.61%	32.02%	142.56%
LITE	64 Neutral	$6.28B	―	-42.79%	―	3.58%	-22.74%
Sector *	63 Neutral	$34.16B	5.78	-11.85%	1.82%	5.31%	-18.32%
VIAV	61 Neutral	$2.30B	492.86	0.71%	―	3.34%	―
SATS	47 Neutral	$9.39B	―	-1.08%	―	-23.85%	88.39%