ACM Research (ACMR) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.75
• Revenue Growth: 17.53%
• EPS Growth: 27.74%
• Country: US
• Employees: 2,023
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.54
• Shares Outstanding: 59,159,153
• 10 Day Avg. Volume: 3,130,874
• 30 Day Avg. Volume: 2,182,108
• PEG Ratio: 0.31
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 13.42
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 9.54
• 1Y Price Target: $43.66
• Price Target Upside: 7.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Neutral
• Price Target: $48.00 ▲(18.64% Upside)

ACM Research's strong financial performance and technical momentum are key strengths, though cash flow challenges and valuation concerns temper the outlook. The earnings call provided a cautiously optimistic view, but highlighted areas needing attention such as shipment growth and operating expenses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for ACM's products and successful market penetration, supporting long-term business expansion.

Innovative Product Developments

Innovative upgrades enhance product competitiveness, potentially increasing market share and supporting sustained revenue growth.

Backlog Growth

A growing backlog reflects strong future demand and revenue visibility, providing a solid foundation for continued business growth.

Negative Factors

Cash Flow Challenges

Challenges in cash flow generation can limit investment in growth initiatives and strain financial flexibility, impacting long-term stability.

Increased Operating Expenses

Rising operating expenses can pressure profit margins, potentially affecting profitability and requiring cost management strategies.

High Long-term Borrowings

Increased borrowings may lead to higher interest obligations, reducing financial flexibility and increasing risk in a rising rate environment.

ACM Research Business Overview & Revenue Model

Company Description

ACM Research, Inc. (ACMR) is a leading provider of semiconductor production equipment, specializing in advanced cleaning and other critical processes used in the manufacturing of integrated circuits. The company operates primarily in the semiconductor equipment sector, focusing on developing innovative technologies that enhance the efficiency and effectiveness of semiconductor fabrication. ACM Research's core products include wet cleaning equipment, which is vital for removing contaminants from silicon wafers, as well as other related technologies that support semiconductor production.

How the Company Makes Money

ACM Research generates revenue primarily through the sale of its semiconductor production equipment, particularly its advanced wet cleaning systems. The company earns money from direct sales of these systems to semiconductor manufacturers, as well as from providing spare parts, maintenance services, and support for its equipment. Key revenue streams include initial equipment sales, recurring revenue from parts and maintenance contracts, and potentially revenue from collaborative partnerships with semiconductor manufacturers and research institutions. Strategic partnerships with major players in the semiconductor industry, including joint ventures and collaborative development projects, also contribute to its earnings by enhancing its product offerings and market reach.

ACM Research Financial Statement Overview

Summary

ACM Research shows strong revenue growth and profitability with healthy margins and a solid equity position. However, challenges in cash flow generation and increased debt levels are concerns that need addressing.

Income Statement

ACM Research demonstrates strong revenue growth, with a TTM increase of 60.7%. The company maintains healthy profit margins, with a gross profit margin of 49.4% and a net profit margin of 13.8% in the TTM. EBIT and EBITDA margins are also robust at 20.9% and 21.9%, respectively. However, there is a slight decline in gross profit margin from the previous year, indicating potential cost pressures.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.29, indicating moderate leverage. Return on equity is healthy at 12.0%, reflecting efficient use of equity capital. The equity ratio stands at 48.4%, suggesting a strong equity base relative to total assets. However, the increase in total debt over the past year warrants monitoring.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow growth of -119.5% in the TTM. The operating cash flow to net income ratio is low at 0.25, indicating potential issues in converting income into cash. Despite these challenges, the free cash flow to net income ratio is positive at 0.54, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	815.17M	782.12M	557.72M	388.83M	259.75M	156.62M
Gross Profit	402.66M	391.55M	276.21M	183.62M	114.86M	69.60M
EBITDA	181.82M	180.42M	126.99M	74.38M	41.05M	22.55M
Net Income	112.12M	103.63M	77.35M	39.26M	37.76M	18.78M
Balance Sheet
Total Assets	2.04B	1.86B	1.49B	1.24B	1.05B	341.26M
Cash, Cash Equivalents and Short-Term Investments	505.02M	444.10M	283.93M	338.65M	592.05M	100.00M
Total Debt	287.37M	188.78M	99.10M	79.50M	39.14M	50.01M
Total Liabilities	848.03M	759.82M	564.75M	423.33M	240.51M	133.09M
Stockholders Equity	986.45M	904.63M	767.39M	674.86M	676.20M	141.15M
Cash Flow
Free Cash Flow	-17.64M	69.99M	-139.66M	-154.71M	-49.80M	-69.03M
Operating Cash Flow	60.89M	152.45M	-75.32M	-62.19M	-40.09M	-13.55M
Investing Cash Flow	-75.14M	-11.96M	-6.75M	-265.67M	-11.28M	-69.95M
Financing Cash Flow	145.20M	92.48M	18.53M	45.87M	538.77M	32.83M

ACM Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACMR, the sentiment is Positive. The current price of 40.46 is above the 20-day moving average (MA) of 36.66, above the 50-day MA of 31.11, and above the 200-day MA of 25.06, indicating a bullish trend. The MACD of 3.36 indicates Negative momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 53.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACMR.

ACM Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	78 Outperform	$2.72B	17.10	16.19%	―	-19.38%	-33.03%
ACMR	70 Neutral	$2.68B	24.55	12.32%	―	17.53%	27.74%
VECO	70 Neutral	$1.78B	29.34	7.83%	―	-0.19%	-28.72%
FORM	67 Neutral	$3.28B	69.01	4.53%	―	8.30%	-63.69%
KLIC	64 Neutral	$2.17B	526.71	0.66%	2.05%	-9.54%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UCTT	55 Neutral	$1.33B	38.78	-19.47%	―	14.28%	-1644.64%

ACM Research Corporate Events

ACM Research Reports Strong Q2 Revenue Growth

On August 12, 2025, ACM Research (Shanghai), Inc. conducted an earnings call to discuss its financial performance for the first half of 2025. The company reported nearly 40% sequential revenue growth in Q2, driven by increased equipment sales and robust customer demand in the logic and memory segments. ACM Shanghai also announced a significant increase in its long-term sales target, raising its estimate of the SAM in China from USD 5.0 billion to USD 7.0 billion, based on updated market projections and trends in China’s semiconductor industry. The company is fully booked with orders for Q3 and expects the same for Q4, with plans to expand production capacity at its Lingang facility.

ACM Research Gains Approval for Share Offering

On June 28, 2025, ACM Research (Shanghai), Inc. received approval from the China Securities Regulatory Commission for a private offering of ordinary shares to qualified buyers. The offering, which can proceed within 12 months, involves issuing up to 44.1 million shares, potentially raising RMB 4.5 billion (approximately $625 million), reflecting updates from recent employee stock option exercises.

ACM Research Stockholders Approve Board and Auditor

On June 12, 2025, ACM Research held its Annual Meeting of Stockholders where holders of Class A and Class B common stock voted on two key proposals. The stockholders elected four nominees to the board of directors and ratified the appointment of Ernst & Young Hua Ming LLP as the independent auditor for the fiscal year ending December 31, 2025.

ACM Research Approves Dividend and 2025 Budget Plan

On June 12, 2025, ACM Research (Shanghai), Inc., a subsidiary of ACM Research, Inc., held its Annual Stockholder Meeting in Shanghai, China, where stockholders approved a proposed dividend of approximately RMB 288.3 million and a 2025 financial budget plan forecasting revenue growth of 16%-26% and R&D expense growth of 15%-35%. The dividend payment, expected by the end of 2025, may impact the company’s operations and financial results, as ACM Shanghai contributes a substantial majority of the consolidated revenue and net income of ACM Research, Inc.