At the current price of $37, what is the market’s view of Amkor Technology’s future operating performance? Amkor Technology’s common shares will need to reach $62 to achieve average annual stock market performance of 9.0% over the next 6 years. Upper quartile performance will require a $73 Amkor Technology stock price by 2029.
Executive Summary
- Price Target Research identifies Amkor Technology as having: high financial strength, high expected growth, high profitability, and instability.
- High valuation, average shareholder returns. Current valuation levels are high relative to the Amkor Technology Peer Group. Recent market returns have tracked the Amkor Technology Peer Group. Total shareholder returns expected to significantly beat the overall equity market. Based on current investor expectations, Amkor Technology shares should reach a level of $89 by 2029 — an 16.4% per year total shareholder return. A 2029 stock price of $62 would reflect median performance and a price of $73 would be required to reach upper quartile performance.
- Amkor Technology’s past growth is average. Historical growth has been average relative to the Amkor Technology Peer Group and forecasted growth is relatively very high. Equity Growth has been superior. EPS Growth has lagged. Amkor Technology’s historical income statement growth and balance sheet growth have diverged. Revenue growth has paralleled asset growth; earnings growth has fallen short of equity growth driving erosion in return on equity.
- Pretax ROA, and Asset Turnover are group leading. These factors have strengthened market perceptions of Amkor Technology. The company has high excess cash and will have to work to reinvest at attractive returns to support profitability and valuation.
- Amkor Technology’s risk profile is neutral. Overall variability has been only average with only average revenue variability, relatively low E.P.S. variability, and above average stock price volatility. Financial Strength is relatively very high and earnings’ expectations are relatively very high. The debt/capital ratio has declined very significantly.
Be the first to comment