One-glance verdict
Overvalued
$19.33 our estimate vs market $90.46
Wall Street consensus: $75.50 (290.6% higher than our fair-value estimate)
368% above our estimate, beyond the bull case
Fundamentals snapshot
Amkor Technology, Inc.
AMKR · NMS · Technology · Semiconductor Equipment & Materials
Current price
$90.46
52-week range
$19.84 - $96.68
Market cap
$22.42B
Balance sheet
Healthy
6.20x Adequate
Net cash $231.02M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.4% last year.
- Reward Returns 10.0% on equity, ahead of 50% of its peers.
- Risk Stock trades 178.1% above its 5-year average P/E.
- Risk Operating margin compressed from 12.7% to 6.0% over 3 years.
What this company does
Amkor Technology, Inc.
Amkor Technology acts as a specialty assembly and testing service for companies that design computer chips. It provides the crucial final steps of putting the delicate, raw chips into protective casings and making sure they work correctly before they are put into devices like smartphones, cars, and computers. This makes Amkor a vital partner in the global electronics supply chain (the entire network of companies involved in creating and delivering a product from supplier to consumer).
How the company got here
Amkor was founded in 1968 with a unique idea connecting American and Korean businesses. The founder, James Kim, created a model where his US-based company would handle sales, while a partner company in South Korea would manufacture and develop the products. This allowed them to be a pioneer in the business of outsourced semiconductor assembly and test (OSAT), where chip designers hire other companies for the final steps of production. After going public on the Nasdaq stock exchange in 1998, Amkor grew by acquiring other companies to gain new technologies and expand into new regions, like Japan and Europe. Today, it's one of the largest companies in its specialized field, with factories located in key electronics manufacturing regions across Asia, Europe, and the United States.
What it actually does
Think of a semiconductor chip, the brain of all electronics, as a delicate, brilliant brain without a skull or a body. Amkor doesn't design or make the brain itself; instead, it provides the crucial service of 'packaging' it. This means they take the finished silicon chip from a wafer (a thin slice of semiconductor material) and put it into a protective casing with tiny electrical connectors that allow it to be installed in a larger device, like your smartphone or car. They also perform rigorous testing to ensure every single chip works perfectly before it gets shipped to electronics makers. Essentially, Amkor provides the critical final steps that turn a raw microchip into a usable component for everything from data centers to wearable gadgets.
Advanced Products
This is Amkor's largest and most important business, making up over 80% of its sales. This segment focuses on the newest and most complex packaging technologies, which are essential for high-performance electronics. These advanced packages are tiny, powerful, and can combine multiple chips into a single module, a technique called System-in-Package (SiP). Companies making the most powerful devices, like premium smartphones, AI data center servers, and complex car systems, pay Amkor for these cutting-edge solutions. This part of the business is growing quickly because modern electronics need more power in smaller spaces.
Mainstream Products
This segment covers more traditional and established packaging services, representing a smaller portion of the company's revenue (the money it earns from sales). These services use older, but still very important, wire-based methods to connect the chip to its protective casing. These packages are used in a huge variety of everyday electronics where the absolute highest performance isn't the main requirement, such as in home appliances, and many types of industrial and consumer devices. While not growing as fast as the advanced side, this business provides a steady, reliable foundation for the company.
What management is betting on now
Amkor's leadership is heavily investing in what's called 'advanced packaging' to support the biggest trends in technology, like artificial intelligence (AI), high-performance computing, and smarter cars. They are also making a big bet on geography by building a major new factory in Arizona, which will be the largest of its kind in the U.S., to serve customers who want a more resilient domestic supply chain (the network of companies that get a product from raw material to the final customer). This strategy aims to place Amkor at the center of the most demanding and profitable parts of the chip industry. The company is also expanding its global manufacturing footprint in places like Vietnam and Portugal to be closer to customers and diversify its operations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$58.38M
FY2024 Q3
$-31.33M
FY2024 Q4
$251.88M
FY2025 Q1
$-55.75M
FY2025 Q2
$112.27M
FY2025 Q3
$-77.93M
FY2025 Q4
$212.40M
FY2026 Q1
$-79.52M
Revenue
$1.68B
Net income
$83.35M
Diluted EPS
0.33
Operating cash flow
$145.09M
Free cash flow
$-79.52M
Fetching…
Sources
Revenue
$1.89B
Net income
$171.76M
Diluted EPS
0.68
Operating cash flow
$644.48M
Free cash flow
$212.40M
Fetching…
Sources
Revenue
$1.99B
Net income
$126.59M
Diluted EPS
0.51
Operating cash flow
$168.51M
Free cash flow
$-77.93M
Fetching…
Sources
Revenue
$1.51B
Net income
$54.42M
Diluted EPS
0.22
Operating cash flow
$258.46M
Free cash flow
$112.27M
Fetching…
Sources
Revenue
$1.32B
Net income
$21.13M
Diluted EPS
0.09
Operating cash flow
$24.15M
Free cash flow
$-55.75M
Fetching…
Sources
Revenue
$1.63B
Net income
$105.65M
Diluted EPS
0.43
Operating cash flow
$537.61M
Free cash flow
$251.88M
Fetching…
Sources
Revenue
$1.86B
Net income
$122.57M
Diluted EPS
0.49
Operating cash flow
$164.19M
Free cash flow
$-31.33M
Fetching…
Sources
Revenue
$1.46B
Net income
$66.90M
Diluted EPS
0.27
Operating cash flow
$224.76M
Free cash flow
$58.38M
Fetching…
Sources
Is it cheap or expensive?
Fair value $19.33 vs current price $90.46
Wall Street consensus is the average analyst price target: $75.50 (290.6% higher than our fair-value estimate).
Our most-likely fair value is $19.33 a share — about 78.6% below today's price of $90.46, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $231.0M - more cash than debt. Interest coverage 6.2x.
Net debt
$-231.02M
Interest coverage
6.20x
Amkor Technology, Inc.'s profit covers its interest bill about 6.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
AMKR
BASELINE
Amkor Technology, Inc.
Total debt $1.62B Interest coverage 6.20x This is the baseline the peer rows are being compared against.
Total debt $8.08B Interest coverage 6.89x +11% vs AMKR Has roughly the same debt cushion as AMKR.
Total debt $31.89M Interest coverage 115.35x +1,762% vs AMKR Carries about 18.6x more debt cushion than AMKR.
Total debt $39.79M Interest coverage -293.99x -100% vs AMKR This peer has almost no interest-payment cushion compared with AMKR.
Total debt $82.40M Interest coverage 100.59x +1,524% vs AMKR Carries about 16.2x more debt cushion than AMKR.
Total debt $330.08M Interest coverage -29.03x -100% vs AMKR This peer has almost no interest-payment cushion compared with AMKR.
What you should know
The case for and against AMKR
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.4% last year.
-
Returns 10.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 178.1% above its 5-year average P/E.
-
Operating margin compressed from 12.7% to 6.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
51.99x
Forward P/E
36.89x
P/B
4.95x
P/S
3.17x
EV/EBITDA
17.79x
PEG ratio
0.76x
Profitability
How much profit each dollar creates
Gross margin
14.4%
Operating margin
6.0%
Net margin
6.2%
ROE
10.0%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.35x
Current ratio
2.01x
Quick ratio
1.70x
Total debt
$1.62B
Total cash
$1.85B
Growth
How the business has been compounding
Revenue TTM
$7.07B
Revenue 5Y CAGR
2.2%
EPS TTM
1.74
EPS 5Y CAGR
-21.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.22B
Free CF TTM
$190.99M
FCF margin
2.7%
Dividend
Shareholder payout
Yield
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Payout ratio
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Last ex-div date
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