ACM Research appears to exhibit relatively low volatility over a three-month investment horizon. ACM Research has a Sharpe Ratio (or Efficiency) of 0.095, indicating that the company has generated a 0.095% return per unit of risk over the past three months. Our approach to predicting a stock's volatility involves using all available market data in conjunction with stock-specific technical indicators that cannot be diversified away. We have identified twenty-seven technical indicators for ACM Research, which can be utilized to assess the company's future volatility. We recommend using ACM Research's Risk Adjusted Performance of 0.0789, mean deviation of 3.17, and Downside Deviation of 3.12 to verify if our risk estimates align with your expectations.
Progressive assessment
ACM Research (NASDAQ:ACMR), a notable player in the Semiconductor Equipment & Materials industry, has recently seen a surge in its stock price, prompting a closer look at its fundamental indicators. The company's
financial health is evident in its strong balance sheet, with a significant
Working Capital of $567.59M and a low Debt to Equity ratio of 0.039%, indicating a robust financial structure and low risk of bankruptcy, despite a Probability Of Bankruptcy at 8.52%. ACM's profitability is also noteworthy, with a Return On Asset of 4.02% and an Operating Margin of 0.18%, although these figures are relatively modest. The company's Net Income From Continuing Ops stands at
$48.7M, reflecting a healthy profit margin. Investor confidence in ACM is high, with
55.93% of its shares owned by institutions. This high institutional ownership often indicates strong market trust in the company. However, the company's Price to Sales ratio of 1.59X, slightly above the industry average, suggests that the stock may be slightly overvalued. In conclusion, while ACM Research's recent stock surge may raise concerns about overvaluation, its strong balance sheet, profitability, and high institutional ownership suggest that it could still be a potential investment opportunity. Investors should, however, keep an eye on the company's operating margin and return on assets, as these could be key indicators of its
future performance.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Acm Research income statement, its balance sheet, and the statement of cash flows. Potential Acm Research investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Acm Research investors may use each financial statement separately, they are all related. The changes in Acm Research's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Acm Research's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Acm Research
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Acm Research performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Acm Research shares is the value that is considered the true value of the share. If
the intrinsic value of Acm is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Acm Research. Please read more on our
fundamental analysis page.
How effective is Acm Research in utilizing its assets?
Acm Research reports assets on its Balance Sheet. It represents the amount of Acm resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Acm Research aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Semiconductors & Semiconductor Equipment space. To get a better handle on how balance sheet or income statements item affect Acm volatility, please check the breakdown of all its
fundamentals.
Are Acm Research Earnings Expected to grow?
The
future earnings power of Acm Research involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Acm Research factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Acm Research
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Acm
expected earnings.
Acm Research Gross Profit
Acm Research Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Acm Research previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Acm Research Gross Profit growth over the last 10 years. Please check Acm Research's
gross profit and other
fundamental indicators for more details.
Breaking it down
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Acm Research is not uncomon. Institutional investors typically avoid acquiring a high percentage of Acm Research stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Acm is distributed among investors.
Ownership Allocation
Acm Research retains a total of 54.85 Million outstanding shares. Over half of Acm Research outstanding shares are owned by
other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these
institutional investors. class="underlinedLink" href="/invest/ratio/ACMR/Shares-Owned-by-Institutions">institutions are subject to different rules and regulation than regular investors in Acm Research. Please watch out for any change in the
institutional holdings of Acm Research as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors21.73% | Insiders22.34% | Institutions55.93% |
| Retail Investors | 21.73 |
| Insiders | 22.34 |
| Institutions | 55.93 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Acm Research has an asset utilization ratio of 31.47 percent. This connotes that the company is making $0.31 for each dollar of assets. An increasing asset utilization means that Acm Research is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets1 B | Assets Non Current293.1 M | | |
| Current Assets | 1.04 Billion | 77.0 |
| Assets Non Current | 293.14 Million | 21.71 |
| Goodwill | 10.73 Million | 0.79 |
| Tax Assets | 6.75 Million | 0.5 |
ACM Research (NASDAQ: ACMR), a key player in the Semiconductor Equipment & Materials industry, has seen a recent surge in its stock price, prompting investors to take a closer look at its
financial health and potential as a long-term investment. The company boasts a healthy current ratio of
3.56X, indicating its ability to cover short-term liabilities. ACMR's revenue stands at a robust
$388.83M, with a gross profit of $183.62M, reflecting solid profitability. The company's operating income is at a promising $59M, which, when coupled with a diluted EPS of 0.8, paints a positive picture. However, a deeper look into the company's financials reveals a net borrowing of $46.8M and a significant change in cash amounting to a loss of $314.6M. This, along with a free cash flow of -$154.7M, suggests a high cash burn rate that could potentially affect the company's financial stability. The company's shares are primarily held by institutions, with a holding of 55.93%, while insiders own 22.34%. The company's PE ratio stands at 15.925, which is considered reasonable in the technology sector. However, the company's debt to equity ratio is extremely low at 0.039%, indicating the company's minimal reliance on debt for operations. In conclusion, while ACM Research shows promising profitability and minimal debt, its high cash burn rate could be a concern for potential investors. Therefore, a careful analysis of the company's future plans and cash flow management is advisable before making an investment decision.
Can Acm Research build up on the latest spike?
ACM Research (ACMR) recently suffered a maximum drawdown of 24.38%, representing a significant decline from its peak. This could potentially alarm some investors, but it also offers an opportunity for those who have faith in the company's long-term prospects. If ACMR can utilize its strengths and take advantage of the recent spike, it might be able to bounce back from this drawdown and yield considerable returns. However, investors should thoughtfully assess the associated risks and keep a close eye on the stock's performance. ACM Research has demonstrated above-average downside volatility for the chosen time horizon. We advise investors to examine ACM Research in more depth and ensure that all
market timing and asset allocation strategies align with the forecast of ACM Research's future alpha. Understanding varying
market volatility trends can often assist investors in timing the market. Proper utilization of volatility indicators allows traders to gauge ACM Research's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect ACM Research's stock price, adding stress for investors as they witness their share values plummet.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, ACM Research presents a promising investment opportunity. The company has seen a strong advance in the market today, and the analyst overall consensus is a 'Buy'. The analyst target price estimated value stands at
$19.116, with the highest estimated target price reaching up to
$32. This suggests a potential upside from the current valuation market value of $12.29. However, investors should also consider the possible downside price of $8.38. The valuation real value of $15.53 also indicates that the stock may be undervalued. Therefore, with careful consideration of these factors, ACM Research could potentially offer a lucrative investment opportunity. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Acm Research. Please refer to our
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