AAC Technologies (AACAY) AI Stock Analysis

• Market Cap: $5.81B
• Dividend Yield: 0.61%
• Average Volume (3M): 659.00
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.22
• Revenue Growth: 31.23%
• EPS Growth: 90.72%
• Country: US
• Employees: 37,273
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.11
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 1,480
• 30 Day Avg. Volume: 659
• PEG Ratio: 0.15
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 13.86
• Enterprise Value/Market Cap: 7.92
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: 9.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $5.50 ▲(12.24% Upside)

AAC Technologies' overall stock score reflects strong financial performance and positive earnings call insights, offset by bearish technical indicators and moderate valuation. The company's strategic focus on growth sectors like automotive and AI, alongside robust revenue and profit growth, supports a positive outlook. However, technical analysis suggests caution due to current bearish momentum.

Positive Factors

Revenue Growth

AAC Technologies' strong revenue growth of 18.4% YoY indicates robust demand for its products, driven by increased market share and strategic expansion, particularly in optics and automotive sectors. This growth trend supports long-term business sustainability and market competitiveness.

Optics Business Expansion

The expansion in the optics business, with a 19.7% YoY revenue increase, highlights AAC's successful innovation and market penetration in high-value segments. This growth strengthens its competitive position and enhances profitability through improved gross margins.

Automotive Acoustics Growth

The automotive acoustics segment's 14.2% revenue growth reflects AAC's strategic focus on diversifying and strengthening its product offerings in emerging markets. This positions the company well for sustained growth as the automotive industry increasingly integrates advanced acoustics.

Negative Factors

Gross Profit Margin Pressure

The decline in gross profit margins in the acoustics segment, due to new product ramp-up, suggests potential short-term challenges in cost management. This could impact overall profitability if not addressed, although stabilization is expected by year-end.

Microphone Margin Decline

The decline in microphone gross profit margins, attributed to lower margins of outsourced MEMS microphones, indicates a need for improved cost efficiency. This margin pressure could affect the profitability of AAC's MEMS segment if not mitigated.

Initial Yield Challenges

Challenges with initial yields for new acoustics products indicate potential inefficiencies in production processes. This can lead to increased costs and reduced margins, impacting long-term profitability unless production efficiencies are improved.

AAC Technologies Business Overview & Revenue Model

Company Description

AAC Technologies Holdings Inc. is a leading provider of advanced acoustic and optical solutions, primarily serving the mobile communications and consumer electronics markets. The company specializes in the design and manufacture of miniature components such as speakers, microphones, and haptic devices, as well as optical products, including camera modules and lenses. With a strong focus on innovation, AAC Technologies aims to enhance the user experience in mobile devices, wearables, and other electronic products.

How the Company Makes Money

AAC Technologies generates revenue through the sale of its acoustic and optical components to major smartphone manufacturers and consumer electronics brands. The company primarily earns money by supplying high-performance audio components that enhance sound quality and user interaction in devices. Key revenue streams include the sale of miniature speakers, microphones, and haptic feedback devices, as well as optical products like camera modules. Strategic partnerships with leading technology companies and manufacturers bolster its market position, allowing AAC to secure long-term contracts and collaborations that stabilize and grow its revenue base. Additionally, AAC Technologies benefits from ongoing demand in the growing segments of IoT devices and smart technology, which further diversifies its earnings sources.

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, enabling it to fund its operations and growth initiatives effectively. While leverage is moderate, careful management of debt levels will be crucial to 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	29.40B	27.33B	20.42B	20.63B	17.67B	17.14B
Gross Profit	6.38B	6.04B	3.45B	3.78B	4.36B	4.23B
EBITDA	4.98B	5.55B	4.18B	4.25B	4.02B	3.65B
Net Income	2.14B	1.80B	740.37M	821.30M	1.32B	1.51B
Balance Sheet
Total Assets	47.03B	46.70B	38.91B	40.34B	42.02B	38.91B
Cash, Cash Equivalents and Short-Term Investments	7.76B	7.54B	6.83B	7.15B	6.05B	7.54B
Total Debt	11.12B	10.45B	9.58B	10.42B	10.50B	9.21B
Total Liabilities	23.27B	23.58B	16.54B	18.15B	19.52B	17.09B
Stockholders Equity	23.29B	22.75B	21.88B	21.66B	21.81B	21.16B
Cash Flow
Free Cash Flow	2.14B	2.93B	3.09B	2.45B	-1.17B	-656.62M
Operating Cash Flow	4.17B	5.20B	4.63B	4.37B	2.18B	3.59B
Investing Cash Flow	-2.50B	-3.49B	-1.51B	-2.35B	-4.25B	-3.26B
Financing Cash Flow	-1.71B	-1.02B	-3.17B	-1.44B	632.55M	2.58B

AAC Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACAY, the sentiment is Neutral. The current price of 4.9 is above the 20-day moving average (MA) of 4.90, below the 50-day MA of 5.08, and below the 200-day MA of 5.31, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 71.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AACAY.

AAC Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDC	70 Outperform	$4.57B	20.63	18.41%	0.17%	13.42%	31.28%
AACAY	67 Neutral	$5.81B	19.40	9.39%	0.61%	31.23%	90.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LITE	61 Neutral	$22.71B	225.37	13.42%	―	33.62%	―
COMM	60 Neutral	$3.94B	-142.23	―	―	9.86%	99.11%
EXTR	59 Neutral	$2.23B	264.57	17.08%	―	14.31%	―
PI	56 Neutral	$5.01B	-391.99	-7.49%	―	4.24%	-141.83%

AAC Technologies Corporate Events

AAC Technologies Reports Strong Growth in 2025 Interim Results

AAC Technologies Holdings Inc., a leading provider of advanced miniaturized technology solutions in the consumer electronics sector, has reported its interim financial results for the first half of 2025. The company, known for its innovative acoustic, optics, and electromagnetic products, operates primarily in the smartphone and smart device markets.