Ichor Holdings (ICHR) AI Stock Analysis

• Market Cap: $775.11M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.35
• Revenue Growth: 15.45%
• EPS Growth: 49.82%
• Country: US
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.03
• Shares Outstanding: 34,327,354
• 10 Day Avg. Volume: 916,400
• 30 Day Avg. Volume: 1,061,219
• PEG Ratio: 0.87
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 100.32
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 44.63
• 1Y Price Target: $23.75
• Price Target Upside: 5.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 58 Neutral
• Price Target: $23.50 ▲(4.31% Upside)

Ichor Holdings' overall stock score is primarily impacted by its financial performance challenges, including declining profitability and negative cash flow trends. Despite these issues, the stock benefits from positive technical indicators, suggesting potential short-term momentum. The valuation is weak due to a negative P/E ratio and lack of dividend yield, while the earnings call highlights both opportunities and risks. The company's strategic initiatives and revenue growth provide some optimism, but execution risks remain a concern.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Ichor's products, suggesting effective market positioning and potential for continued expansion.

Product Qualification Success

Successful product qualifications enhance Ichor's competitive edge, potentially leading to increased sales and market share in the semiconductor industry.

Expansion in Proprietary Components

Expansion in proprietary components strengthens Ichor's product portfolio, driving long-term growth through innovation and customer diversification.

Negative Factors

Gross Margin Challenges

Persistent gross margin challenges can erode profitability, indicating potential issues in cost management and operational efficiency.

Hiring and Retention Issues

Hiring and retention issues may hinder production capacity, affecting Ichor's ability to meet demand and potentially limiting growth.

Slight Revenue Pullback

A projected revenue pullback could signal market saturation or reduced demand, impacting future growth prospects and financial stability.

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 systems and components, which are essential for semiconductor fabrication. The company has established key revenue streams from both new product sales and aftermarket services, including maintenance and support for its systems. Significant partnerships with major semiconductor manufacturers and technology firms further bolster its earnings, as Ichor's products are integral in the production processes of cutting-edge chips. Additionally, the company benefits from ongoing demand in the semiconductor market, driven by trends in technology such as 5G, artificial intelligence, and the Internet of Things (IoT).

Ichor Holdings Financial Statement Overview

Summary

Ichor Holdings faces significant challenges with declining profitability and negative cash flow trends. While the balance sheet remains relatively strong with low leverage, the negative return on equity and cash flow issues highlight potential risks. The company needs to address its cost structure and improve cash generation to stabilize its financial position.

Income Statement

Ichor Holdings has experienced a decline in profitability, with negative net and EBIT margins in the TTM period. Although revenue has grown by 4.15% in the TTM, the company is struggling with negative net income, indicating challenges in cost management or market conditions. The gross profit margin has also decreased compared to previous years, reflecting pressure on profitability.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.071 in the TTM, indicating a conservative leverage position. However, the return on equity is negative, reflecting the impact of net losses on shareholder returns. The equity ratio remains stable, suggesting a solid capital structure despite recent performance challenges.

Cash Flow

Cash flow analysis reveals a concerning trend with negative free cash flow growth and a negative free cash flow to net income ratio in the TTM. Operating cash flow has decreased, and the company is not generating sufficient cash to cover its net losses, which could impact liquidity if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	929.18M	849.04M	811.12M	1.28B	1.10B	620.84M
Gross Profit	110.51M	103.33M	103.40M	211.86M	177.48M	86.36M
EBITDA	16.61M	21.96M	22.88M	121.49M	106.20M	36.84M
Net Income	-20.69M	-20.82M	-42.98M	72.80M	70.90M	10.73M
Balance Sheet
Total Assets	985.07M	995.56M	938.48M	1.08B	1.02B	566.55M
Cash, Cash Equivalents and Short-Term Investments	92.22M	108.67M	79.95M	86.47M	75.50M	60.61M
Total Debt	49.28M	174.21M	286.33M	341.74M	322.74M	192.63M
Total Liabilities	290.92M	297.23M	373.80M	496.25M	520.16M	345.14M
Stockholders Equity	694.15M	698.34M	564.68M	587.50M	500.71M	221.42M
Cash Flow
Free Cash Flow	-19.02M	10.24M	42.14M	2.02M	-5.57M	36.66M
Operating Cash Flow	17.05M	27.88M	57.63M	31.45M	15.27M	57.15M
Investing Cash Flow	-36.07M	-17.64M	-15.50M	-28.93M	-289.58M	-20.49M
Financing Cash Flow	-3.11M	18.47M	-48.65M	8.46M	96.91M	-19.88M

Ichor Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICHR, the sentiment is Positive. The current price of 22.53 is above the 20-day moving average (MA) of 19.91, above the 50-day MA of 18.45, and above the 200-day MA of 22.00, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICHR.

Ichor Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LAES	61 Neutral	$1.19B	―	-45.62%	―	-44.30%	16.42%
IMOS	60 Neutral	$757.26M	158.50	0.66%	4.00%	0.15%	-92.08%
ICHR	58 Neutral	$775.11M	―	-2.98%	―	15.45%	49.82%
SKYT	58 Neutral	$766.00M	―	-34.11%	―	-10.53%	36.86%
BZAI	53 Neutral	$533.94M	―	-1405.64%	―	―	-3299.52%
SQNS	49 Neutral	$20.18M	―	416.14%	―	31.78%	―

Ichor Holdings Corporate Events

Ichor Holdings Announces Leadership Changes in August 2025

On August 15, 2025, Ichor Holdings announced that Christopher Smith will step down as Chief Commercial Officer to become a Strategic Advisor to the CEO, effective September 2, 2025. David Lee, with 30 years of experience in the semiconductor manufacturing equipment industry, has been appointed as Senior Vice President, Sales and Marketing, starting August 29, 2025.

Ichor Holdings Announces CEO Transition Plan

On August 3, 2025, Ichor Holdings announced a CEO transition plan where Jeffrey Andreson will step down, and a search for his successor will commence. Andreson will remain CEO until a successor is appointed and will then serve as an Executive Advisor until August 2026. This transition aims to ensure a seamless leadership change while Andreson assists with onboarding the new CEO and supports various company operations. The transition is amicable, with no disagreements between Andreson and the company, and reflects Ichor’s strategic focus on maintaining its leadership position in the industry.