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ICHR STOCK WRITE UP


ICHR (ICHOR HOLDINGS, INC)

  • P/E: 24.2
  • GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: N/A
  • SECTOR: ELECTRONIC TECHNOLOGY
  • ASSETS-LIABILITIES: 2
  • DIVIDEND: none

Ichor is a recent IPO that went public 12/9/2016, founded in 1999, and re-incorporated in 2012. The company is producing semiconductor equipment, process equipment for LED lights, flat panel displays, and alternative energy systems. Their revenue is growing rapidly, and the company is already profitable.
In the most recent quarter, it is impossible to track GAAP y-o-y growth as the company did not have shares utilized to calculate EPS. However, the company did double their net sales from $64 to $131 million and maintain a gross profit rate of 16.3%. Obviously, the company doubled its cash pile after their IPO. The company increased R&D by 60%, and long-term debt borrowings were also decreased from the comparable quarter of last year.
Tom Rohr, the company's CEO, has 27 years of executive experience in technology, working at Applied Materials from 1997-2004. He has been CEO since Ichor's re-incorporation in 2012. Rohr has a BS and MBA. Therefore, he is educated and experienced in the field.
As US oil production climbs, so will demand for companies providing subsystems for the transportation of gas, such as Ichor. The company's rapidly growing trend of revenue will increase if Ichor can capitalize on the increase in oil production. After going public at $9, the company has risen to $21 as of the time I am writing this analysis. However, their price-to-earnings multiple is only 24.2, meaning that if the company capitalizes on growing oil production and continues to grow at the rate it grew in the last quarter, ICHR will be grossly undervalued.
Wall street may boost the share price to match these expectations backed by market data and company track record. The company reports AMC 5/11/17, and Wall street will analyze whether or not earnings coincide with expectations. 1 Analyst covering the company has predicted $.56 EPS.







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