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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