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

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ICHR

Ichor Holdings

(NASDAQ:ICHR)

Rating:46Neutral
Price Target:
$15.50
▼(-8.45% Downside)
Ichor Holdings' overall stock score reflects significant financial challenges, including declining profitability and negative cash flow trends. The bearish technical indicators and negative valuation metrics further weigh on the score. Despite some positive aspects from the earnings call, such as revenue growth and strategic initiatives, the risks associated with execution and market conditions remain substantial.
Positive Factors
Design Wins
Design win momentum with a third customer adopting ICHR's proprietary internal valve system during the quarter.
Revenue Performance
Ichor reported mixed results with 2Q25 revenue beating consensus estimates by approximately $5MM.
Negative Factors
Demand and Tariff Uncertainty
Revenue is expected to be flat due to softer demand amid tariff uncertainty.
Earnings Guidance
Management guided NG EPS below consensus as ramp challenges persist for another quarter.
Gross Margin Challenges
Gross margins at the low end is disappointing.

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

Ichor Holdings Business Overview & Revenue Model

Company DescriptionIchor Holdings (ICHR) is a leading provider of advanced manufacturing solutions for the semiconductor industry. The company specializes in the design and production of critical fluid delivery systems used in various semiconductor fabrication processes. Ichor operates in the high-tech sector, focusing on providing innovative products that enhance efficiency and reliability in semiconductor manufacturing, which is vital for the production of advanced electronics.
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: -15.94%|
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 faces challenges with declining revenue and profitability, affecting its income statement negatively. 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
55
Neutral
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.
Balance Sheet
70
Positive
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.
Cash Flow
60
Neutral
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.
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
Negative
Last Price16.93
Price Trends
50DMA
19.82
Negative
100DMA
19.14
Negative
200DMA
24.90
Negative
Market Momentum
MACD
-0.77
Positive
RSI
42.01
Neutral
STOCH
56.28
Neutral
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 16.93 is below the 20-day moving average (MA) of 18.52, below the 50-day MA of 19.82, and below the 200-day MA of 24.90, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 42.01 is Neutral, neither overbought nor oversold. The STOCH value of 56.28 is Neutral, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
£509.23M27.17-2.10%2.79%3.87%-14.52%
58
Neutral
$548.63M113.030.66%5.45%0.15%-92.08%
54
Neutral
$786.56M-11.32%5.92%-746.07%
54
Neutral
$935.03M-10.09%-21.27%-207.30%
53
Neutral
$1.04B38.78-19.47%14.28%-1644.64%
48
Neutral
$1.63B-50.93%77.94%-75.13%
46
Neutral
$633.00M-2.98%15.45%49.82%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ICHR
Ichor Holdings
16.93
-13.63
-44.60%
AOSL
Alpha and Omega
26.28
-10.17
-27.90%
IMOS
ChipMOS Technologies
15.16
-7.16
-32.08%
COHU
Cohu
19.86
-6.23
-23.88%
UCTT
Ultra Clean Holdings
22.34
-15.27
-40.60%
AAOI
Applied Optoelectronics
21.93
12.90
142.86%

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: Aug 21, 2025