Ichor Holdings (ICHR) AI Stock Analysis

• Market Cap: $758.27M
• Dividend Yield: N/A
• Average Volume (3M): 338.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.31
• Revenue Growth: 4.68%
• EPS Growth: 55.72%
• Country: US
• Employees: 1,820
• Sector: Technology
• Sector Strength: 42
• Industry: Semiconductors
• EPS (TTM): -0.65
• Shares Outstanding: 34,003,242
• 10 Day Avg. Volume: 277,705
• 30 Day Avg. Volume: 338,551
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.07
• Price to Cash Flow (P/CF): -90.90
• P/FCF Ratio: 0.00
• 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: $45.60
• Price Target Upside: 155.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Ichor Holdings is currently facing profitability challenges, reflected in its negative net income and EBIT. However, the company is showing signs of financial stability with effective debt management and improving cash flow. Technical indicators suggest a mild upward trend, but valuation metrics highlight significant concerns. The latest earnings call offers a positive outlook for revenue growth and demand but also underscores margin pressures and rising expenses, adding to the mixed outlook.

Positive Factors

Demand for components

ICHR has added headcount in anticipation of higher demand for components in CY25.

NAND market demand

Improved visibility on NAND market demand is seen as a positive factor for ICHR.

Revenue growth

Revenue growth is accelerating, outpacing analyst and consensus expectations.

Negative Factors

Gross margin pressures

Near-term gross margin pressures from inventory charges and higher labor costs could weigh on ICHR's financial results.

Product mix and costs

The suboptimal product mix and non-recurring inventory write-offs are factors driving a lower gross margin and earnings per share.

Year-end inventory charges

ICHR reported a lower GM for C4Q due to year-end inventory charges and unfavorable mix, impacting EPS.

Ichor Holdings Business Overview & Revenue Model

Company Description

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. It also manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products for use in fluid delivery systems. The company primarily markets its products directly and through resellers to equipment OEMs in the semiconductor equipment market in the United States, the United Kingdom, Singapore, Malaysia, Korea, Mexico, and internationally. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.

How the Company Makes Money

Ichor Holdings generates revenue primarily through the sale of its fluid delivery subsystems and components to semiconductor equipment manufacturers. These products are essential in the semiconductor fabrication process, as they ensure precise and reliable delivery of critical gases and chemicals. Ichor's revenue model is largely based on long-term partnerships and contracts with leading semiconductor equipment companies, benefiting from the consistent demand for advanced semiconductor fabrication technology. Additionally, the company invests in research and development to expand its product offerings and maintain a competitive edge in the market.

Ichor Holdings Financial Statement Overview

Summary

Ichor Holdings faces profitability challenges with negative net income and EBIT, impacting its financial performance. While revenue shows modest growth, the company is effectively managing its debt and improving cash flow generation. Overall, the financial stability is supported by a strong equity base, though profitability remains a concern.

Income Statement

Ichor Holdings shows declining profitability with a negative EBIT and net income in the latest TTM period, indicating operational challenges. The gross profit margin stands at 11.67%, and net profit margin is negative, reflecting ongoing issues in cost management and revenue generation. However, there is a slight revenue growth of 4.68% from the previous year, which is a positive sign.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 70.15%. The debt-to-equity ratio has improved due to reduced total debt, indicating better leverage management. However, the return on equity is negative due to negative net income, highlighting profitability concerns.

Cash Flow

Operating cash flow is positive, and free cash flow is growing, indicating improvements in cash management. The operating cash flow to net income ratio is negative due to the net loss, but the free cash flow to net income ratio is positive, suggesting potential for future profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
849.04M	811.12M	1.28B	1.10B	914.24M
	Gross Profit
103.33M	103.40M	211.86M	177.48M	124.89M
	EBIT
-7.64M	-10.89M	85.82M	81.01M	41.55M
	EBITDA
-7.64M	22.88M	121.49M	106.20M	65.28M
	Net Income Common Stockholders
-20.82M	-42.98M	72.80M	70.90M	33.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
108.67M	79.95M	86.47M	75.50M	252.90M
	Total Assets
995.56M	938.48M	1.08B	1.02B	774.17M
	Total Debt
53.18M	286.33M	341.74M	322.74M	210.67M
	Net Debt
-55.49M	206.38M	255.27M	247.25M	-42.23M
	Total Liabilities
297.23M	373.80M	496.25M	520.16M	362.48M
	Stockholders Equity
698.34M	564.68M	587.50M	500.71M	411.69M
Cash Flow		Free Cash Flow
10.24M	42.14M	2.02M	-5.31M	27.96M
	Operating Cash Flow
27.88M	57.63M	31.45M	15.53M	38.26M
	Investing Cash Flow
-17.64M	-15.50M	-28.93M	-289.85M	-14.60M
	Financing Cash Flow
18.47M	-48.65M	8.46M	96.91M	168.62M

Ichor Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICHR, the sentiment is Negative. The current price of 17.85 is below the 20-day moving average (MA) of 25.35, below the 50-day MA of 28.39, and below the 200-day MA of 31.09, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 30.57 is Neutral, neither overbought nor oversold. The STOCH value of 10.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICHR.

Ichor Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMAT	76 Outperform	$118.34B	19.06	35.19%	1.10%	4.45%	-10.01%
VECO	72 Outperform	$1.18B	16.67	10.43%	―	7.63%	―
ONTO	70 Outperform	$6.06B	30.89	11.01%	―	21.01%	65.27%
MKSI	65 Neutral	$5.41B	28.56	7.93%	1.10%	-0.99%	―
ICHR	58 Neutral	$758.27M	―	-3.30%	―	4.68%	55.72%
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
UCTT	55 Neutral	$947.78M	42.32	2.77%	―	20.92%	―