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Ichor Holdings (ICHR)
NASDAQ:ICHR
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Ichor Holdings
(NASDAQ:ICHR)
Rating:52Neutral
Price Target:
$16.00
▼( -2.50% Downside)
Positive Factors
Demand Growth
ICHR is unique among peers in being the first to note stronger demand into the coming year, indicating a potential competitive advantage.
Market Recovery
Management expects that ICHR will grow faster than WFE, and that gross margin will be around 16% for the year.
Product Development
Continued qualification of next gen gas panels with 4th customer win.
Negative Factors
Demand Uncertainty
Management guided lower than the Street on both the top and bottom lines due to slowing demand across several business areas.
Gross Margin Pressure
Near-term gross margin pressures from inventory charges and higher labor costs could weigh on ICHR's financial results.
Tariff Impact
Analyst remains cautious due to the tariff impacts on both demand and GM, maintaining a hold recommendation.
Ichor Holdings (ICHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$570.83M
Dividend YieldN/A
Average Volume (3M)451.70K
Price to Earnings (P/E)―
Beta (1Y)2.20
Revenue Growth13.41%
EPS Growth72.56%
CountryUS
Employees1,820
SectorTechnology
Sector Strength75
IndustrySemiconductors
Share Statistics
EPS (TTM)0.12
Shares Outstanding34,119,880
10 Day Avg. Volume433,946
30 Day Avg. Volume451,702
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)0.81
Price to Sales (P/S)0.00
P/FCF Ratio54.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.17Price Target Upside77.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
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 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 challenges with declining revenue and profitability, negatively impacting its income statement. However, the balance sheet remains strong with lower leverage and a solid equity base. Cash flow generation is stable, though profitability issues persist. The company needs to address operational inefficiencies and improve revenue growth to enhance overall financial health.Income Statement
Ichor Holdings has experienced a decline in revenue and profitability over recent periods. The Gross Profit Margin for TTM is approximately 11.97%, indicating cost pressures. Net Profit Margin is negative due to persistent losses, reflecting challenges in achieving sustainable profitability. Revenue growth has been negative, with a notable decrease from 2022 to 2025. EBIT and EBITDA margins also show a declining trend, signaling operational inefficiencies.55
Neutral
Balance Sheet
The balance sheet shows a strong equity base with an Equity Ratio of approximately 69.6% for TTM, suggesting financial stability. The Debt-to-Equity Ratio has improved, indicating reduced leverage risk. However, Return on Equity is negative due to recent losses, highlighting the need for improved profitability.70
Positive
Cash Flow
The company's operating cash flow has shown growth, which is a positive sign. However, the Free Cash Flow growth is modest, and the Free Cash Flow to Net Income Ratio is not meaningful due to negative net income in the TTM period. The Operating Cash Flow to Net Income Ratio is positive, indicating decent cash generation relative to accounting losses.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 892.12M | 849.04M | 811.12M | 1.28B | 1.10B | 914.24M | Gross Profit |
| 106.78M | 103.33M | 103.40M | 211.86M | 177.48M | 124.89M | EBIT |
| -5.07M | -7.64M | -10.89M | 85.82M | 81.01M | 41.55M | EBITDA |
| 17.21M | -7.64M | 22.88M | 121.49M | 106.20M | 65.28M | Net Income Common Stockholders |
| -16.39M | -20.82M | -42.98M | 72.80M | 70.90M | 33.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 68.84M | 108.67M | 79.95M | 86.47M | 75.50M | 252.90M | Total Assets |
| 1.04B | 995.56M | 938.48M | 1.08B | 1.02B | 774.17M | Total Debt |
| 340.40M | 174.21M | 286.33M | 341.74M | 322.74M | 210.67M | Net Debt |
| 271.57M | 65.54M | 206.38M | 255.27M | 247.25M | -42.23M | Total Liabilities |
| 446.69M | 297.23M | 373.80M | 496.25M | 520.16M | 362.48M | Stockholders Equity |
| 593.46M | 698.34M | 564.68M | 587.50M | 500.71M | 411.69M |
| Cash Flow | Free Cash Flow | ||||
| 10.43M | 10.24M | 42.14M | 2.02M | -5.31M | 27.96M | Operating Cash Flow |
| 42.05M | 27.88M | 57.63M | 31.45M | 15.53M | 38.26M | Investing Cash Flow |
| -31.63M | -17.64M | -15.50M | -28.93M | -289.85M | -14.60M | Financing Cash Flow |
| -3.27M | 18.47M | -48.65M | 8.46M | 96.91M | 168.62M |
Ichor Holdings Technical Analysis
Negative
16.41
Price Trends
20.39
Negative
25.39
Negative
27.88
Negative
Market Momentum
-0.94
Positive
37.76
Neutral
7.91
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 16.41 is below the 20-day moving average (MA) of 18.42, below the 50-day MA of 20.39, and below the 200-day MA of 27.88, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 7.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $691.74M | 19.08 | 4.64% | 4.57% | -0.41% | -47.27% | |
62 Neutral | $825.89M | ― | -9.87% | ― | -30.75% | -3668.44% | |
61 Neutral | $11.41B | 10.19 | -7.05% | 2.95% | 7.46% | -10.52% | |
59 Neutral | $915.17M | 32.81 | 3.30% | ― | 20.20% | ― | |
52 Neutral | $570.83M | ― | -2.35% | ― | 13.41% | 72.56% | |
51 Neutral | $628.23M | ― | -2.55% | ― | 3.57% | -134.36% | |
48 Neutral | $978.14M | ― | -68.45% | ― | 50.30% | -111.11% |
* Technology Sector Average
Performance Comparison
ICHR
Ichor Holdings
16.73
-22.01
-56.81%
AOSL
Alpha and Omega
21.11
-7.23
-25.51%
IMOS
ChipMOS Technologies
18.77
-7.85
-29.49%
COHU
Cohu
16.96
-14.70
-46.43%
UCTT
Ultra Clean Holdings
19.93
-25.17
-55.81%
AAOI
Applied Optoelectronics
17.61
5.07
40.43%
Ichor Holdings Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -21.26%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook. While there is strong revenue growth and significant achievements in component qualifications, challenges remain with gross margin performance, tariff impacts, and supply chain issues. The exit of the Scotland business and reduced revenue guidance add to the concerns.Q1-2025 Updates
Positive Updates
Revenue Growth
First quarter revenues were up 5% sequentially from Q4 and grew 21% over the same period last year, indicating strong year-over-year growth.
Significant Component Qualifications
Achieved a significant number of new component qualifications in 2024, with expectations to convert these into more meaningful internal supply within the gas panel business through 2025.
Strong Cash Position
Cash and equivalents totaled $109 million at the end of the quarter, with $19 million generated in cash flow from operations.
Global Expansion Plans
Planned CapEx investments for 2025 are expected to be above historical average, supporting global expansion of machining and non-semi-business capabilities.
Negative Updates
Gross Margin Challenges
Gross margin for the quarter was 12.4%, below the forecast of 14.5%, primarily due to slower transition from externally supplied products to internally manufactured products.
Tariff and Supply Chain Concerns
Recent tariff announcements and supply chain uncertainties could have transitory impacts on gross margins as costs are mitigated or passed on.
Exit of Refurbishment Business in Scotland
Decision to exit the refurbishment business in Scotland due to low demand, causing a slight impact on both revenue and gross margin in Q1.
Lower Revenue Guidance
Revenue guidance for Q2 is $10 million lower than what visibility indicated a quarter ago, attributed to several small factors including customer demand shifts and tariff uncertainties.
Company Guidance
During Ichor's first quarter 2025 earnings call, the company provided guidance indicating modest revenue growth expectations for the year, projecting second-quarter revenues between $225 million and $245 million, slightly lower than previously anticipated due to various small demand shifts and external factors such as tariffs. First quarter revenues were $244.5 million, up 5% sequentially and 21% year-over-year. Gross margins were 12.4%, below expectations due to challenges in transitioning to internally sourced components, resulting in an increased reliance on external supplies. Despite these hurdles, Ichor remains confident in its strategy to improve gross margins through increased internal sourcing, targeting a reduction of external supply to approximately 75% of the bill of materials by the end of 2025. The company also highlighted ongoing tariff negotiations, which could impact gross margins, and noted that its non-GAAP operating expenses for the second quarter are expected to be approximately $23.5 million, with a full-year increase of 4% to 6% compared to 2024.Ichor Holdings Corporate Events
Shareholder Meetings
Ichor Holdings Holds Annual Shareholders Meeting in Fremont
Neutral
May 14, 2025
On May 14, 2025, Ichor Holdings, Ltd. held its Annual General Meeting of Shareholders in Fremont, California, where 32,265,278 outstanding ordinary shares were represented by proxy. During the meeting, shareholders elected directors to serve until the 2026 annual meeting, approved the 2025 Omnibus Incentive Plan, endorsed executive compensation, and ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 26, 2025.
The most recent analyst rating on (ICHR) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Ichor Holdings stock, see the ICHR Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.