Amkor Technology, Inc. (AMKR) stock analysis

P/E below its 5-year median

Amkor Technology's P/E of 15.4 is below its own 5-year median of 16.8.

P/E below the industry

Amkor Technology's P/E of 15.4 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA above its 5-year median

Amkor Technology's EV/EBITDA of 6.8 is above its 5-year median of 5.3.

P/B below the industry

Amkor Technology's price-to-book of 1.97 is below the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $38.10 is below our fair value estimate of $67.08.

Margin of safety over 20%

The price is 43.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -21.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 101% over the last twelve months, against a 5-year average of 2.0% a year.

Growing slower than the industry

Revenue grew 15.7% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (fourth quarter 2026 Net sales, Oct 26, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 16.6% over the last twelve months, against 13.5% a year earlier.

Return on equity under 15%

Return on equity was 13.6% over the last twelve months and averaged 14.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Amkor Technology's return on equity of 13.6% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 2.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 8.3% over the last twelve months, against a 5-year average of 7.6%.

Net margin above the industry

Amkor Technology's net margin of 8.3% is above the Electronic Components and Accessories median of 2.9%.

High debt

Debt is 51.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 49.6% five years ago to 51.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 61.3% of total debt.

Interest well covered

Operating income covers interest expense 9.7 times.

Short-term assets cover short-term debts

Current assets are 2.17 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.78; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Amkor Technology paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Amkor Technology yields 0.9%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 6 fiscal years.

Covered by earnings

Dividends take 13.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.