Amkor (AMKR) AI Stock Analysis

• Market Cap: $10.10B
• Dividend Yield: 0.81%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): 32.9
• Beta (1Y): 1.97
• Revenue Growth: 0.13%
• EPS Growth: -16.17%
• Country: US
• Employees: 28,300
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.51
• Shares Outstanding: 247,193,440
• 10 Day Avg. Volume: 3,801,387
• 30 Day Avg. Volume: 3,348,578
• PEG Ratio: -13.06
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 18.35
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 7.97
• Enterprise Value/Ebitda: 6.33
• 1Y Price Target: $38.00
• Price Target Upside: -7.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $49.00 ▲(19.92% Upside)

Amkor's overall stock score reflects a stable financial position with strong cash flow generation and strategic investments. The bullish technical indicators suggest positive momentum, though caution is advised due to overbought signals. The high P/E ratio indicates a relatively expensive valuation, while the earnings call highlights both strong performance and existing challenges. The recent corporate event positively impacts the capital structure.

Positive Factors

Strategic Arizona Investment

The $7 billion investment in Arizona enhances Amkor's technology leadership and supply chain resilience, crucial for long-term growth in advanced packaging.

Strong Cash Flow Generation

Robust cash flow growth supports Amkor's ability to invest in growth opportunities and manage financial obligations, strengthening its financial position.

CEO Succession Plan

The CEO succession plan ensures strategic continuity and focus on high-growth markets, supporting Amkor's long-term business objectives.

Negative Factors

Profitability Margins Under Pressure

Pressure on profitability margins suggests challenges in cost management, potentially affecting long-term earnings and competitiveness.

Consumer Segment Decline

Declining consumer segment revenue indicates potential weakness in this market, impacting overall growth and diversification efforts.

Higher Manufacturing Costs

Increased manufacturing costs can erode margins, limiting profitability and reducing financial flexibility over the long term.

Amkor Business Overview & Revenue Model

Company Description

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the rest of the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, and test and drop shipment services. The company also provides flip chip-scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip-chip stacked chip-scale packages that are used to stack memory on top of digital baseband, and as applications processors in mobile devices; and flip-chip ball grid array packages for various networking, storage, computing, and consumer applications. In addition, it offers wafer-level CSP packages that are used in power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages for use in ICs; and silicon wafer integrated fan-out technology, which replaces a laminate substrate with a thinner structure. Further, the company provides lead frame packages that are used in electronic devices for low to medium pin count analog and mixed-signal applications; substrate-based wirebond packages, which are used to connect a die to a substrate; micro-electro-mechanical systems (MEMS) packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules, which are used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. It primarily serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. Amkor Technology, Inc. was founded in 1968 and is headquartered in Tempe, Arizona.

How the Company Makes Money

Amkor generates revenue primarily through its semiconductor packaging and testing services. The company operates on a fee-for-service model, charging clients for the design, manufacturing, and testing of semiconductor packages. Key revenue streams include sales of packaging services, testing services, and engineering services. Additionally, Amkor benefits from long-term contracts with major semiconductor manufacturers, which provide a stable revenue base. Strategic partnerships with leading technology firms enhance its market position and drive growth, allowing Amkor to expand its capabilities and service offerings in the fast-evolving semiconductor landscape.

Amkor Financial Statement Overview

Summary

Amkor demonstrates a stable financial performance with strengths in cash flow generation and a conservative balance sheet. However, profitability margins are under pressure, and revenue growth is modest. The company is well-positioned to manage its financial obligations and invest in growth opportunities, but improving profitability remains a key focus area.

Income Statement

Amkor's income statement shows a moderate performance with a slight revenue growth of 1.98% in the TTM period. The gross profit margin stands at 13.58%, indicating some pressure on cost management. The net profit margin is relatively low at 4.80%, reflecting challenges in translating revenue into profit. EBIT and EBITDA margins are at 7.16% and 16.85%, respectively, suggesting decent operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.39, indicating a conservative leverage approach. Return on equity is modest at 7.29%, showing limited returns on shareholder investments. The equity ratio is not explicitly calculated but suggests a balanced asset structure. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Amkor's cash flow statement highlights strong free cash flow growth of 72.13% in the TTM period, a positive indicator of cash generation capabilities. The operating cash flow to net income ratio is 0.51, suggesting efficient cash conversion. The free cash flow to net income ratio of 0.43 indicates a solid ability to generate cash relative to net income, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.45B	6.32B	6.50B	7.09B	6.14B	5.05B
Gross Profit	870.68M	933.21M	943.15M	1.33B	1.23B	900.81M
EBITDA	1.10B	1.09B	1.13B	1.53B	1.33B	961.25M
Net Income	307.78M	354.01M	359.81M	765.82M	643.00M	338.14M
Balance Sheet
Total Assets	8.19B	6.94B	6.77B	6.82B	6.04B	5.02B
Cash, Cash Equivalents and Short-Term Investments	2.11B	1.65B	1.59B	1.24B	1.08B	831.77M
Total Debt	1.89B	1.42B	1.38B	1.53B	1.37B	1.31B
Total Liabilities	3.84B	2.76B	2.78B	3.12B	3.07B	2.67B
Stockholders Equity	4.31B	4.15B	3.96B	3.67B	2.94B	2.33B
Cash Flow
Free Cash Flow	476.92M	345.07M	520.55M	190.46M	341.52M	217.01M
Operating Cash Flow	988.73M	1.09B	1.27B	1.10B	1.12B	770.03M
Investing Cash Flow	-853.09M	-800.32M	-951.91M	-1.01B	-943.88M	-638.71M
Financing Cash Flow	465.76M	-260.43M	-149.21M	55.60M	-30.10M	-333.72M

Amkor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMKR, the sentiment is Positive. The current price of 40.86 is below the 20-day moving average (MA) of 41.27, above the 50-day MA of 36.10, and above the 200-day MA of 25.13, indicating a neutral trend. The MACD of 1.56 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 23.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMKR.

Amkor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ON	73 Outperform	$22.41B	72.67	3.87%	―	-16.13%	-81.06%
UMC	71 Outperform	$20.02B	15.45	10.97%	6.06%	5.87%	-20.93%
AMKR	69 Neutral	$10.10B	32.93	7.27%	0.81%	0.13%	-16.17%
ASX	69 Neutral	$32.54B	29.89	11.17%	2.29%	8.01%	10.41%
GFS	63 Neutral	$19.89B	-429.14	-0.38%	―	0.25%	-106.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$23.21B	45.82	3.00%	1.28%	-17.33%	-76.71%

Amkor Corporate Events

John Liu Resigns from Amkor Board, Transitioning Roles

On October 28, 2025, John Liu resigned from Amkor Technology, Inc.’s Board of Directors, with no disagreements cited regarding company operations or policies. Following his resignation, the Board reduced its size from eleven to ten members. Liu will transition to the role of Executive Vice President, Corporate Development and Strategy on November 3, 2025.

Amkor Announces Q3 2025 Financial Results and CEO Succession

On October 27, 2025, Amkor Technology announced its financial results for the third quarter of 2025, reporting net sales of $1.99 billion and a net income of $127 million. The company also revealed a CEO succession plan, with Mr. Kevin Engel set to replace Mr. Giel Rutten as President and CEO effective January 1, 2026. This transition aims to maintain Amkor’s strategic focus on advanced packaging and high-growth markets, ensuring continued collaboration with leading semiconductor companies.

Amkor Completes $500M Senior Notes Offering

On September 22, 2025, Amkor Technology, Inc. announced the completion of its offering of $500 million in 5.875% Senior Notes due 2033. The company also issued a notice for the redemption of all $400 million of its outstanding 6.625% Senior Notes due 2027, effective October 9, 2025. The proceeds from the 2033 Notes will be used to fund the redemption of the 2027 Notes, cover related fees, and support general corporate purposes. This strategic financial maneuver is expected to optimize Amkor’s capital structure and support its ongoing operations.