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Ichor Holdings (ICHR)
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Ichor Holdings (ICHR) AI Stock Analysis

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ICHR

Ichor Holdings

(NASDAQ:ICHR)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
$20.00
▲(0.96% Upside)
Ichor Holdings' overall stock score is primarily impacted by its financial performance challenges, including declining profitability and negative cash flow trends. While technical analysis shows some positive momentum, the valuation remains unattractive due to a negative P/E ratio. The earnings call highlighted both opportunities and risks, but its weight was excluded from the final score calculation.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for Ichor's products, suggesting a solid market position and potential for continued expansion in the semiconductor industry.
Product Qualification Success
Successful product qualification enhances Ichor's competitive advantage, potentially leading to increased sales and stronger customer relationships in the long term.
Expansion in Proprietary Components
Expanding proprietary components strengthens Ichor's product portfolio, supporting revenue diversification and resilience against market fluctuations.
Negative Factors
Gross Margin Challenges
Persistent gross margin challenges could hinder profitability, affecting Ichor's ability to reinvest in growth and maintain competitive pricing.
Hiring and Retention Issues
Ongoing hiring and retention issues may limit operational efficiency and capacity, potentially constraining Ichor's ability to meet demand.
Negative Cash Flow Trends
Negative cash flow trends could impact liquidity and financial flexibility, posing risks to Ichor's ability to fund operations and strategic initiatives.

Ichor Holdings (ICHR) vs. SPDR S&P 500 ETF (SPY)

Ichor Holdings Business Overview & Revenue Model

Company DescriptionIchor 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 MoneyIchor 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 Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong revenue growth and product qualification successes offset by gross margin challenges and hiring issues. The company faces execution risks but remains optimistic about its strategic initiatives.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth in H1 2025
Second quarter revenues of $240 million came in at the upper end of expectations, with first half revenues up 20% year-over-year, outperforming overall WFE growth for 2025.
New Product Qualification Success
Achieved a major milestone with the successful qualification of a flow control product at a key end user, marking the first end-user qualification for this product line.
Continued Expansion in Proprietary Components
Secured a third customer qualification for the valve product line and began shipping valves in production volumes this quarter.
Negative Updates
Gross Margin Challenges
Q2 gross margin of 12.5% was at the lower end of expectations due to hiring challenges limiting output of machine components.
Hiring and Retention Issues
Continued hiring and retention challenges have impacted output volumes, affecting the company's ability to meet strong customer demand.
Slight Revenue Pullback in H2 2025
Projected revenue in the second half of 2025 is slightly down due to factors like slowing EUV build and reduced investments by a major U.S. semiconductor manufacturer.
Company Guidance
During Ichor's second quarter 2025 earnings call, the company provided guidance indicating that third-quarter revenues are expected to range from $225 million to $245 million, with gross margins between 12.5% and 13.5%. This follows Q2 revenues of $240 million, which were at the upper end of expectations, though gross margins for the quarter were slightly lower at 12.5% due to hiring challenges. Operating expenses are projected to be approximately $23.7 million in Q3. The company is focused on ramping up its internal supply capabilities, particularly in its U.S. machining operations, to meet strong customer demand and support its proprietary component products. Despite some challenges, Ichor remains confident in its strategy to achieve stronger gross margins and expects its revenue growth to outperform the overall wafer fab equipment (WFE) industry growth for 2025. The company is also dealing with tariff impacts, particularly related to Section 232, and continues to pass these costs on to customers. Looking ahead, Ichor is taking a conservative view on hiring and gross margin forecasts but anticipates potential sequential improvements in gross margins in the fourth quarter.

Ichor Holdings Financial Statement Overview

Summary
Ichor Holdings is facing significant financial challenges, with declining profitability and negative cash flow trends. Despite a strong balance sheet 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
45
Neutral
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
60
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue929.18M849.04M811.12M1.28B1.10B914.24M
Gross Profit110.51M103.33M103.40M211.86M177.48M124.89M
EBITDA16.61M21.96M22.88M121.49M106.20M65.28M
Net Income-20.69M-20.82M-42.98M72.80M70.90M33.28M
Balance Sheet
Total Assets985.07M995.56M938.48M1.08B1.02B774.17M
Cash, Cash Equivalents and Short-Term Investments92.22M108.67M79.95M86.47M75.50M252.90M
Total Debt49.28M174.21M286.33M341.74M322.74M210.67M
Total Liabilities290.92M297.23M373.80M496.25M520.16M362.48M
Stockholders Equity694.15M698.34M564.68M587.50M500.71M411.69M
Cash Flow
Free Cash Flow-19.02M10.24M42.14M2.02M-5.57M27.96M
Operating Cash Flow17.05M27.88M57.63M31.45M15.27M38.26M
Investing Cash Flow-36.07M-17.64M-15.50M-28.93M-289.58M-14.60M
Financing Cash Flow-3.11M18.47M-48.65M8.46M96.91M168.63M

Ichor Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.81
Price Trends
50DMA
17.90
Positive
100DMA
18.61
Positive
200DMA
22.75
Negative
Market Momentum
MACD
0.12
Negative
RSI
62.89
Neutral
STOCH
51.34
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 19.81 is above the 20-day moving average (MA) of 17.39, above the 50-day MA of 17.90, and below the 200-day MA of 22.75, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICHR.

Ichor Holdings Risk Analysis

Ichor Holdings disclosed 36 risk factors in its most recent earnings report. Ichor Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ichor Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$696.96M143.155.76%4.25%0.15%-92.08%
60
Neutral
$583.46M-8.30-27.23%-44.30%16.42%
58
Neutral
$921.12M-55.63-36.45%-10.53%36.86%
51
Neutral
$680.02M-2.98%15.45%49.82%
50
Neutral
$351.99M-1.613171.89%-3299.52%
49
Neutral
$24.96M128.13%32.23%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ICHR
Ichor Holdings
19.81
-11.49
-36.71%
IMOS
ChipMOS Technologies
19.34
-3.09
-13.78%
SQNS
Sequans Communications S A
9.78
-18.72
-65.68%
SKYT
SkyWater Technology
19.12
10.56
123.36%
BZAI
Blaize Holdings
3.43
-7.89
-69.70%
LAES
SEALSQ Corp
3.99
3.56
827.91%

Ichor Holdings Corporate Events

Executive/Board Changes
Ichor Holdings Announces Leadership Changes in August 2025
Neutral
Aug 15, 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.

Executive/Board ChangesBusiness Operations and Strategy
Ichor Holdings Announces CEO Transition Plan
Neutral
Aug 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 02, 2025