Amkor (AMKR) AI Stock Analysis

• Market Cap: $7.25B
• Dividend Yield: 2.52%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 2.10
• Revenue Growth: -1.20%
• EPS Growth: -19.46%
• Country: US
• Employees: 28,300
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.22
• Shares Outstanding: 247,143,050
• 10 Day Avg. Volume: 2,846,673
• 30 Day Avg. Volume: 2,138,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 5.70
• Enterprise Value/Ebitda: 4.59
• 1Y Price Target: $24.86
• Price Target Upside: -14.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: $33.00 ▲(13.17% Upside)

Amkor's overall stock score reflects strong financial management and positive technical momentum, supported by strategic growth initiatives. While valuation concerns and margin constraints present challenges, the company's robust cash flow and strategic investments in advanced packaging solutions provide a solid foundation for future growth.

Positive Factors

Strong Cash Flow Management

Amkor's strong cash flow management supports operational and strategic initiatives, ensuring financial stability and enabling future investments.

Advanced Packaging Solutions

Investment in advanced packaging positions Amkor to capitalize on industry trends like 5G and IoT, enhancing its competitive edge and market position.

Improved Financial Flexibility

Strong liquidity and financial flexibility allow Amkor to navigate industry challenges, invest in growth opportunities, and weather economic fluctuations.

Negative Factors

Revenue Growth Challenges

Sustaining revenue growth is crucial for Amkor's future performance, as ongoing challenges could impact long-term profitability and market competitiveness.

Gross Margin Constraints

Gross margin constraints limit profitability, affecting Amkor's ability to reinvest in business growth and maintain competitive pricing in the market.

Underutilized Assets in Japan

Underutilized assets in Japan constrain profitability and may necessitate restructuring, impacting operational efficiency and financial performance.

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 business model that involves charging its clients for the assembly, packaging, and testing of semiconductor chips. Key revenue streams include fees for manufacturing services, which vary based on the complexity and type of packaging required, as well as testing services that ensure the functionality and quality of the semiconductor devices. Amkor has established significant partnerships with major semiconductor manufacturers and fabless companies, allowing it to secure long-term contracts and a steady flow of business. Additionally, the company benefits from increasing demand for advanced packaging solutions as the semiconductor industry evolves, particularly with the growth of 5G technology, the Internet of Things (IoT), and automotive electronics, which further solidifies its earnings potential.

Amkor Financial Statement Overview

Summary

Amkor's financials reflect a well-managed company with a solid balance sheet, effective cost management, and strong cash flow generation. Despite facing revenue growth challenges, the company maintains healthy profitability and leverage ratios. The financial stability and cash efficiency position Amkor favorably in the competitive semiconductor sector. However, sustaining revenue growth will be crucial for future performance.

Income Statement

Amkor's income statement shows stable performance in a competitive semiconductor industry. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 13.6%, with a net profit margin of 4.8%. However, the revenue has seen a slight decline from the previous year, indicating challenges in maintaining growth momentum. The EBIT margin stands at 6.4%, reflecting efficient cost management despite revenue pressures. Overall, the company maintains solid profitability, but the lack of revenue growth is a concern.

Balance Sheet

Amkor has a robust balance sheet with a debt-to-equity ratio of 0.39, indicating moderate leverage. The equity ratio is strong at 54.5%, suggesting a solid financial foundation. Return on equity is at a reasonable 7.2%, showcasing the company's ability to generate profits from shareholders' investments. The balance sheet reflects financial stability and prudent capital management, which positions the company well in the semiconductor industry.

Cash Flow

The cash flow statement highlights a positive free cash flow growth of 22.7% over the recent annual period, indicating improved cash efficiency. The operating cash flow to net income ratio is healthy at 3.2, suggesting strong cash generation relative to net income. Additionally, the free cash flow to net income ratio of 1.4 reflects efficient capital expenditure management. Overall, Amkor demonstrates strong cash flow management, which supports its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.32B	6.32B	6.50B	7.09B	6.14B	5.05B
Gross Profit	858.67M	933.21M	943.15M	1.33B	1.23B	900.81M
EBITDA	1.07B	1.09B	1.13B	1.53B	1.33B	961.25M
Net Income	303.76M	354.01M	359.81M	765.82M	643.00M	338.14M
Balance Sheet
Total Assets	7.71B	6.94B	6.77B	6.82B	6.04B	5.02B
Cash, Cash Equivalents and Short-Term Investments	2.04B	1.65B	1.59B	1.24B	1.08B	831.77M
Total Debt	1.65B	1.42B	1.35B	1.53B	1.32B	1.30B
Total Liabilities	3.47B	2.76B	2.78B	3.12B	3.07B	2.67B
Stockholders Equity	4.20B	4.15B	3.96B	3.67B	2.94B	2.33B
Cash Flow
Free Cash Flow	423.26M	345.07M	520.55M	190.46M	341.52M	217.01M
Operating Cash Flow	984.41M	1.09B	1.27B	1.10B	1.12B	770.03M
Investing Cash Flow	-731.06M	-800.32M	-951.91M	-1.01B	-943.88M	-638.71M
Financing Cash Flow	186.26M	-260.43M	-149.21M	55.60M	-30.10M	-333.72M

Amkor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 29.16 is above the 20-day moving average (MA) of 26.25, above the 50-day MA of 24.25, and above the 200-day MA of 21.83, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 71.40 is Negative, neither overbought nor oversold. The STOCH value of 80.98 is Negative, 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
UMC	78 Outperform	18.43B	15.10	12.92%	6.49%	5.46%	-26.72%
AMKR	76 Outperform	$7.25B	23.95	7.37%	2.52%	-1.20%	-19.46%
ASX	67 Neutral	24.48B	23.52	11.59%	3.11%	4.86%	6.44%
ON	67 Neutral	20.83B	46.44	5.87%	―	-17.93%	-75.83%
STM	67 Neutral	25.72B	42.31	3.66%	1.22%	-22.97%	-78.58%
GFS	54 Neutral	18.33B	-156.68	-1.01%	―	-0.65%	-114.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Amkor Corporate Events

Amkor Announces $500M Senior Notes Offering

On September 8, 2025, Amkor Technology announced the pricing of its $500 million offering of 5.875% Senior Notes due 2033. The company plans to use the proceeds to redeem its existing $400 million 6.625% Senior Notes due 2027, cover related fees, and for general corporate purposes. This strategic financial move is expected to optimize Amkor’s debt structure and potentially reduce interest expenses, thereby enhancing its financial flexibility. The offering is set to close on September 22, 2025, and is part of Amkor’s broader efforts to strengthen its market position in the semiconductor industry.

Amkor Announces $400M Senior Notes Offering

On September 8, 2025, Amkor Technology announced its plan to offer $400 million in senior notes due 2033. The proceeds will be used to redeem its existing 6.625% senior notes due 2027, enhancing its financial structure. This move is aimed at maintaining operational flexibility and potentially improving its market positioning in the semiconductor industry.

Amkor Amends Credit Facility with New Term Loans

On June 27, 2025, Amkor Technology, Inc. amended its existing senior revolving credit facility to include a new tranche of term loans, the Term A-1 Loans, amounting to $500 million. These loans will be used to refinance existing debt and for general corporate purposes, with a maturity date set for May 9, 2030. Additionally, the company announced its intention to redeem $125 million of its 6.625% Senior Notes due 2027, with the redemption scheduled for July 30, 2025, leaving $400 million of the notes outstanding.