One-glance verdict
Overvalued
$18.10 our estimate vs market $100.30
Wall Street consensus: $92.29 (409.8% higher than our fair-value estimate)
454% above our estimate, beyond the bull case
Fundamentals snapshot
Ichor Holdings, Ltd.
ICHR · NMS · Technology · Semiconductor Equipment & Materials
Current price
$100.30
52-week range
$13.12 - $113.58
Market cap
$3.50B
Balance sheet
Distressed
-5.93x Concerning
Net debt $69.58M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 1.2% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -7.4% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 6.7% to 1.1% over 3 years.
What this company does
Ichor Holdings, Ltd.
Ichor Holdings builds the highly specialized "plumbing" systems that deliver precise gases and chemicals inside the massive machines that manufacture computer chips. The company sells these essential components directly to the big equipment manufacturers, making it a key link in the semiconductor supply chain (the network of companies that contribute to creating a final product). Because of this, Ichor's business tends to perform well when the global demand for electronics is strong, as this drives the need for more chip-making machines.
How the company got here
Founded in 1999, Ichor Holdings started as a specialized maker of parts for the semiconductor industry. Over the years, it grew by developing its own technologies and buying other companies to expand its capabilities. This strategy transformed it from a simple component manufacturer into a key global supplier for the big companies that build chip-making machinery. A major turning point was its decision to become a public company, listing its stock on the NASDAQ exchange to raise money and expand its operations.
What it actually does
Think of Ichor as a high-tech plumber for the factories that make computer chips. It doesn't make the chips themselves, but it builds the complex systems that deliver ultra-pure gases and chemicals inside the chip-making machines. These delivery systems are critical because making tiny, powerful chips requires incredibly precise control over these materials. Ichor works directly with the companies that build this multi-million dollar equipment, known as original equipment manufacturers (OEMs), designing and building these essential subsystems to their exact specifications.
Fluid Delivery Subsystems
This is the company's main business, representing the vast majority of what it sells. This segment is broken into two key product types: gas delivery and chemical delivery subsystems. The gas systems handle the precise mixing and flow of specialty gases used to etch tiny circuits onto silicon wafers, while the chemical systems manage the liquids used for cleaning and polishing those wafers. The customers are the large semiconductor equipment makers who integrate these Ichor-built modules into their final products.
Precision Components and Services
Beyond complete systems, Ichor also makes and sells individual high-tech parts. This includes precision-machined metal components, expertly welded parts (called weldments), and components joined together using advanced techniques like laser welding and brazing. The company also offers special surface treatments to ensure parts are perfectly clean and durable. These components are often sold to the same equipment manufacturers who buy the full subsystems, and sometimes to companies in other high-tech fields like aerospace and defense.
What management is betting on now
Management is currently focused on a strategy called vertical integration, which means making more of the individual components for its systems in-house instead of buying them from other suppliers. By expanding its own manufacturing, especially in lower-cost locations like Mexico and Malaysia, the company aims to have more control over quality and reduce costs. This should improve its profitability, or margins (the portion of sales revenue the company keeps as profit). They are also betting that as chips become more complex for things like artificial intelligence (AI), the fluid delivery systems needed to make them will also become more advanced and valuable.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$14.64M
FY2024 Q3
$2.17M
FY2024 Q4
$-6.89M
FY2025 Q1
$496.00K
FY2025 Q2
$-14.80M
FY2025 Q3
$2.10M
FY2025 Q4
$5.92M
FY2026 Q1
$-9.98M
Revenue
$256.07M
Net income
$-2.47M
Diluted EPS
-0.07
Operating cash flow
$-2.92M
Free cash flow
$-9.98M
Fetching…
Sources
Revenue
$223.61M
Net income
$-15.96M
Diluted EPS
-0.46
Operating cash flow
$9.17M
Free cash flow
$5.92M
Fetching…
Sources
Revenue
$239.30M
Net income
$-22.85M
Diluted EPS
-0.67
Operating cash flow
$9.25M
Free cash flow
$2.10M
Fetching…
Sources
Revenue
$240.28M
Net income
$-9.41M
Diluted EPS
-0.28
Operating cash flow
$-7.51M
Free cash flow
$-14.80M
Fetching…
Sources
Revenue
$244.47M
Net income
$-4.56M
Diluted EPS
-0.13
Operating cash flow
$18.98M
Free cash flow
$496.00K
Fetching…
Sources
Revenue
$233.29M
Net income
$-3.94M
Diluted EPS
-0.11
Operating cash flow
$-2.49M
Free cash flow
$-6.89M
Fetching…
Sources
Revenue
$211.14M
Net income
$-2.78M
Diluted EPS
-0.08
Operating cash flow
$8.07M
Free cash flow
$2.17M
Fetching…
Sources
Revenue
$203.23M
Net income
$-5.11M
Diluted EPS
-0.15
Operating cash flow
$17.49M
Free cash flow
$14.64M
Fetching…
Sources
Is it cheap or expensive?
Fair value $18.10 vs current price $100.30
Wall Street consensus is the average analyst price target: $92.29 (409.8% higher than our fair-value estimate).
Our most-likely fair value is $18.10 a share — about 82.0% below today's price of $100.30, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $69.6M. Interest coverage -5.9x.
Net debt
$69.58M
Interest coverage
-5.93x
Ichor Holdings, Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
ICHR
BASELINE
Ichor Holdings, Ltd.
Total debt $158.66M Interest coverage -5.93x This is the baseline the peer rows are being compared against.
Total debt $780.40M Interest coverage 1.14x This peer still has a real interest-payment cushion, while ICHR does not.
Total debt $4.29B Interest coverage 2.48x This peer still has a real interest-payment cushion, while ICHR does not.
Total debt $683.10M Interest coverage 13.27x This peer still has a real interest-payment cushion, while ICHR does not.
Total debt $3.76B Interest coverage 4.62x This peer still has a real interest-payment cushion, while ICHR does not.
What you should know
The case for and against ICHR
2 Rewards
2 Risks
Rewards
-
Revenue grew 1.2% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Return on equity was -7.4% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 6.7% to 1.1% 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)
—
Forward P/E
37.17x
P/B
5.22x
P/S
3.65x
EV/EBITDA
131.16x
PEG ratio
1.05x
Profitability
How much profit each dollar creates
Gross margin
12.0%
Operating margin
1.1%
Net margin
-5.3%
ROE
-7.4%
ROA
-0.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.24x
Current ratio
2.82x
Quick ratio
1.16x
Total debt
$158.66M
Total cash
$89.09M
Growth
How the business has been compounding
Revenue TTM
$959.25M
Revenue 5Y CAGR
-3.6%
EPS TTM
-1.48
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$7.99M
Free CF TTM
$-6.28M
FCF margin
-0.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—