Ichor Holdings (ICHR) AI Stock Analysis

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Ichor Holdings

(NASDAQ:ICHR)

Rating:52Neutral

Price Target:

$16.00

▼(-16.36%Downside)

Ichor Holdings' overall stock score is impacted mainly by its financial performance and valuation. The company's strong balance sheet offers stability, but declining profitability and negative P/E ratio present significant risks. Technical analysis further indicates bearish momentum. The mixed earnings call outlook adds some optimism but is overshadowed by ongoing operational challenges.

Positive Factors

Competitive Advantage

ICHR is unique among peers in being the first to note stronger demand into the coming year, indicating a potential competitive advantage.

Growth Strategy

ICHR is expected to outgrow the wafer fab equipment market as it recovers.

Market Demand

Improved visibility on NAND market demand is seen as a positive factor for ICHR.

Negative Factors

Cost Pressures

Near-term gross margin pressures from inventory charges and higher labor costs could weigh on ICHR's financial results.

Financial Performance

ICHR's preliminary results showed lower gross margins and EPS than previously guided.

Operational Challenges

Gross margin outlook is lowered, mainly due to inventory write-downs and higher direct labor costs.

Ichor Holdings (ICHR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$656.47M

Dividend YieldN/A

Average Volume (3M)475.65K

Price to Earnings (P/E)―

Beta (1Y)2.25

Revenue Growth13.41%

EPS Growth72.56%

CountryUS

Employees1,820

SectorTechnology

Sector Strength84

IndustrySemiconductors

Share Statistics

EPS (TTM)0.12

Shares Outstanding34,119,880

10 Day Avg. Volume565,826

30 Day Avg. Volume475,647

Financial Highlights & Ratios

PEG Ratio8.85

Price to Book (P/B)1.31

Price to Sales (P/S)0.00

P/FCF Ratio381.25

Enterprise Value/Market Cap1.56

Enterprise Value/Revenue0.30

Enterprise Value/Gross Profit9.42

Enterprise Value/Ebitda11.37

Forecast

1Y Price Target

$29.17

Price Target Upside52.48% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Ichor Holdings Business Overview & Revenue Model

Company DescriptionIchor Holdings, Ltd. (ICHR) is a leading provider of fluid delivery subsystems and components for semiconductor capital equipment. The company operates primarily in the semiconductor industry, supplying essential infrastructure that facilitates the manufacturing of integrated circuits. Ichor's core products include gas and chemical delivery systems, which are critical components in the semiconductor fabrication process, ensuring precision and efficiency in the delivery of gases and chemicals used in chip production.

How the Company Makes MoneyIchor Holdings generates revenue through the sale of its fluid delivery subsystems and components to semiconductor capital equipment manufacturers. The company's key revenue streams include the design, engineering, and manufacturing of gas and chemical delivery systems, which are sold to original equipment manufacturers (OEMs) in the semiconductor industry. Ichor's earnings are significantly influenced by the demand for semiconductor manufacturing equipment, which is driven by the cyclical nature of the semiconductor industry and technological advancements. Partnerships with leading OEMs and the company's ability to provide customized, high-performance solutions contribute to its revenue generation. Additionally, Ichor may engage in long-term contracts and collaborations to ensure a consistent revenue flow.

Ichor Holdings Earnings Call Summary

Earnings Call Date:May 05, 2025

(Q1-2025)

% Change Since: -8.21%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed outlook. While there is strong revenue growth and significant achievements in component qualifications, challenges remain with gross margin performance, tariff impacts, and supply chain issues. The exit of the Scotland business and reduced revenue guidance add to the concerns.

Q1-2025 Updates

Positive Updates

Revenue Growth

First quarter revenues were up 5% sequentially from Q4 and grew 21% over the same period last year, indicating strong year-over-year growth.

Significant Component Qualifications

Achieved a significant number of new component qualifications in 2024, with expectations to convert these into more meaningful internal supply within the gas panel business through 2025.

Strong Cash Position

Cash and equivalents totaled $109 million at the end of the quarter, with $19 million generated in cash flow from operations.

Global Expansion Plans

Planned CapEx investments for 2025 are expected to be above historical average, supporting global expansion of machining and non-semi-business capabilities.

Negative Updates

Gross Margin Challenges

Gross margin for the quarter was 12.4%, below the forecast of 14.5%, primarily due to slower transition from externally supplied products to internally manufactured products.

Tariff and Supply Chain Concerns

Recent tariff announcements and supply chain uncertainties could have transitory impacts on gross margins as costs are mitigated or passed on.

Exit of Refurbishment Business in Scotland

Decision to exit the refurbishment business in Scotland due to low demand, causing a slight impact on both revenue and gross margin in Q1.

Lower Revenue Guidance

Revenue guidance for Q2 is $10 million lower than what visibility indicated a quarter ago, attributed to several small factors including customer demand shifts and tariff uncertainties.

Company Guidance

During Ichor's first quarter 2025 earnings call, the company provided guidance indicating modest revenue growth expectations for the year, projecting second-quarter revenues between $225 million and $245 million, slightly lower than previously anticipated due to various small demand shifts and external factors such as tariffs. First quarter revenues were $244.5 million, up 5% sequentially and 21% year-over-year. Gross margins were 12.4%, below expectations due to challenges in transitioning to internally sourced components, resulting in an increased reliance on external supplies. Despite these hurdles, Ichor remains confident in its strategy to improve gross margins through increased internal sourcing, targeting a reduction of external supply to approximately 75% of the bill of materials by the end of 2025. The company also highlighted ongoing tariff negotiations, which could impact gross margins, and noted that its non-GAAP operating expenses for the second quarter are expected to be approximately $23.5 million, with a full-year increase of 4% to 6% compared to 2024.

Ichor Holdings Financial Statement Overview

Summary

Ichor Holdings faces declining revenue and profitability, impacting the income statement negatively. Despite these challenges, the balance sheet remains strong with lower leverage and a solid equity base. Cash flow generation is stable, though profitability issues persist. The company needs to address operational inefficiencies and improve revenue growth to enhance overall financial health.

Income Statement

Neutral

Ichor Holdings has experienced a decline in revenue and profitability over recent periods. The Gross Profit Margin for TTM is approximately 11.97%, indicating cost pressures. Net Profit Margin is negative due to persistent losses, reflecting challenges in achieving sustainable profitability. Revenue growth has been negative, with a notable decrease from 2022 to 2025. EBIT and EBITDA margins also show a declining trend, signaling operational inefficiencies.

Balance Sheet

Positive

The balance sheet shows a strong equity base with an Equity Ratio of approximately 69.6% for TTM, suggesting financial stability. The Debt-to-Equity Ratio has improved, indicating reduced leverage risk. However, Return on Equity is negative due to recent losses, highlighting the need for improved profitability.

Cash Flow

Neutral

The company's operating cash flow has shown growth, which is a positive sign. However, the Free Cash Flow growth is modest, and the Free Cash Flow to Net Income Ratio is not meaningful due to negative net income in the TTM period. The Operating Cash Flow to Net Income Ratio is positive, indicating decent cash generation relative to accounting losses.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
892.12M	849.04M	811.12M	1.28B	1.10B	914.24M
	Gross Profit
108.86M	103.33M	103.40M	211.86M	177.48M	124.89M
	EBIT
-5.07M	-7.64M	-10.89M	85.82M	81.01M	41.55M
	EBITDA
27.27M	21.96M	22.88M	121.49M	106.20M	65.28M
	Net Income Common Stockholders
-16.39M	-20.82M	-42.98M	72.80M	70.90M	33.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
109.28M	108.67M	79.95M	86.47M	75.50M	252.90M
	Total Assets
1.01B	995.56M	938.48M	1.08B	1.02B	774.17M
	Total Debt
169.81M	174.21M	286.33M	341.74M	322.74M	210.67M
	Net Debt
-58.74M	65.54M	206.38M	255.27M	247.25M	-42.23M
	Total Liabilities
306.25M	297.23M	373.80M	496.25M	520.16M	362.48M
	Stockholders Equity
700.36M	698.34M	564.68M	587.50M	500.71M	411.69M
Cash Flow		Free Cash Flow
10.43M	10.24M	42.14M	2.02M	-5.57M	27.96M
	Operating Cash Flow
42.05M	27.88M	57.63M	31.45M	15.27M	38.26M
	Investing Cash Flow
-31.63M	-17.64M	-15.50M	-28.93M	-289.58M	-14.60M
	Financing Cash Flow
-3.27M	18.47M	-48.65M	8.46M	96.91M	168.63M

Ichor Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price19.13

Price Trends

50DMA

18.31

Positive

100DMA

23.64

Negative

200DMA

27.10

Negative

Market Momentum

MACD

-0.10

Negative

RSI

57.15

Neutral

STOCH

87.12

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICHR, the sentiment is Neutral. The current price of 19.13 is above the 20-day moving average (MA) of 17.55, above the 50-day MA of 18.31, and below the 200-day MA of 27.10, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 87.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ICHR.

Ichor Holdings Risk Analysis

Ichor Holdings disclosed 36 risk factors in its most recent earnings report. Ichor Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Ichor Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMOS	71 Outperform	$720.69M	20.28	4.64%	5.57%	-0.41%	-47.27%
AOSL	63 Neutral	$743.70M	―	-2.55%	―	3.57%	-134.36%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
COHU	59 Neutral	$891.92M	―	-9.87%	―	-30.75%	-3668.44%
UCTT	58 Neutral	$977.48M	34.91	3.30%	―	20.20%	―
ICHR	52 Neutral	$656.47M	―	-2.35%	―	13.41%	72.56%
AAOI	47 Neutral	$922.93M	―	-68.45%	―	50.30%	-111.11%

* Technology Sector Average

Performance Comparison

ICHR

Ichor Holdings

19.13

-19.14

-50.01%

AOSL

Alpha and Omega

25.08

-4.85

-16.20%

IMOS

ChipMOS Technologies

20.05

-6.25

-23.76%

COHU

Cohu

19.11

-12.77

-40.06%

UCTT

Ultra Clean Holdings

21.57

-27.59

-56.12%

AAOI

Applied Optoelectronics

16.32

6.23

61.74%

Ichor Holdings Corporate Events

Shareholder Meetings

Ichor Holdings Holds Annual Shareholders Meeting in Fremont

Neutral

May 14, 2025

On May 14, 2025, Ichor Holdings, Ltd. held its Annual General Meeting of Shareholders in Fremont, California, where 32,265,278 outstanding ordinary shares were represented by proxy. During the meeting, shareholders elected directors to serve until the 2026 annual meeting, approved the 2025 Omnibus Incentive Plan, endorsed executive compensation, and ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 26, 2025.

The most recent analyst rating on (ICHR) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Ichor Holdings stock, see the ICHR Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.