Amkor Technology, Inc. reports 180% Net Income growth in 2020 and 24.6% Revenue growth
02/08/2021 • About Amkor Technology, Inc. (
$AMKR) • By InTwits
Amkor Technology, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Amkor Technology, Inc. is a growth stock: 2020 revenue growth was 24.6%, 5 year revenue CAGR was 11.9% at 2020 ROIC 12.7%
- Amkor Technology, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.0%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: $1,523m in 2020, $328m in 2019, $62m in 2018, $108m in 2017, $72m in 2016
- The company has highly profitable business model: ROIC is 12.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.6x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Amkor Technology, Inc.'s Revenue surged on 24.6%. Revenue growth showed slowdown in 20Q4 - it was 16.3% YoY. During the last 5 years Revenue growth bottomed in 2019 at -6.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.64 pp from 7.0% to 7.6% in 2020.
Gross Margin increased slightly on 1.8 pp from 16.0% to 17.8% in 2020. SG&A as a % of Revenue decreased slightly on 0.96 pp from 7.0% to 6.0% in 2020.
Net Income margin increased on 3.7 pp from 3.0% to 6.7% in 2020.
Investments (CAPEX, working capital and M&A)
In 2020 Amkor Technology, Inc. had CAPEX/Revenue of 10.9%. The company showed decline in CAPEX/Revenue of 2.1 pp from 13.1% in 2017 to 10.9% in 2020. Average CAPEX/Revenue for the last three years was 11.8%. Amkor Technology, Inc. invested a big chunk of EBITDA (54.2%) to CAPEX to secure its growth. CAPEX as a % of Revenue declined at -1.3 pp per annum in the last 5 years.
Return on investment
The company operates at good ROIC (12.7%) and ROE (15.8%). ROIC increased on 5.7 pp from 7.0% to 12.7% in 2020. ROE increased on 9.4 pp from 6.4% to 15.8% in 2020.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 0.9x to 0.6x in 2020. Debt dropped on 18.5% while cash dropped on 22.0%.
Amkor Technology, Inc. has no short term refinancing risk: cash is higher than short term debt (341.8%).
Valuation and dividends
Amkor Technology, Inc.'s trades at EV/EBITDA 5.1x and P/E 13.8x.
Management team
Amkor Technology, Inc.'s CEO is Guillaume Marie Jean Rutten "Giel". Guillaume Marie Jean Rutten "Giel" has 9 months tenure with the company.
Financial and operational results
FY ended 12/31/2020
Amkor Technology, Inc. ($AMKR) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3,928 | 4,207 | 4,316 | 4,053 | 5,051 | 24.6% |
| Gross Profit | 710 | 761 | 711 | 649 | 901 | 38.7% |
| SG&A | 284 | 297 | 295 | 282 | 303 | 7.4% |
| EBITDA | 864 | 987 | 830 | 799 | 1,021 | 27.7% |
| EBIT | 309 | 406 | 258 | | | |
| Tax | 51 | 40 | 56 | | | |
| Net Income | 176 | 264 | 127 | 121 | 338 | 179.7% |
| Stock Based Compensation | 3 | 5 | 5 | | | |
Balance Sheet
|
|---|
| Cash | 550 | 596 | 682 | 895 | 698 | -22.0% |
| Accounts Receivable | 563 | 798 | 724 | | | |
| Inventory | 268 | 214 | 231 | | | |
| Accounts Payable | 487 | 569 | 530 | | | |
| Short Term Debt | 35 | 124 | 115 | 191 | 204 | 7.1% |
| Long Term Debt | 1,440 | 1,241 | 1,218 | 1,397 | 1,090 | -22.0% |
Cash flow
|
|---|
| Capex | 650 | 551 | 547 | 472 | 553 | 17.1% |
| Acquisitions | | 44 | | | | |
Ratios
|
|---|
| Revenue growth | 36.2% | 7.1% | 2.6% | -6.1% | 24.6% | |
| EBITDA growth | 31.1% | 14.3% | -15.9% | -3.8% | 27.7% | |
|
|---|
| Gross Margin | 18.1% | 18.1% | 16.5% | 16.0% | 17.8% | 1.8% |
| EBITDA Margin | 22.0% | 23.5% | 19.2% | 19.7% | 20.2% | 0.5% |
| EBIT Margin | 7.9% | 9.6% | 6.0% | | |
| SG&A, % of revenue | 7.2% | 7.1% | 6.8% | 7.0% | 6.0% | -1.0% |
| SBC, % of revenue | 0.1% | 0.1% | 0.1% | | |
| Net Income Margin | 4.5% | 6.3% | 2.9% | 3.0% | 6.7% | 3.7% |
| CAPEX, % of revenue | 16.5% | 13.1% | 12.7% | 11.7% | 10.9% | -0.7% |
|
|---|
| ROIC | 10.8% | 13.5% | 8.1% | 7.0% | 12.7% | 5.7% |
| ROE | 13.6% | 17.1% | 7.2% | 6.4% | 15.8% | 9.4% |
| Net Debt/EBITDA | 1.1x | 0.8x | 0.8x | 0.9x | 0.6x | -0.3x |
People
|
|---|
| Insider ownership | 63.0% | 63.0% | 63.0% | | | |
| Employees | 27,900 | 29,300 | 30,850 | | | |
| Revenue/Employee, th. $ | 141 | 144 | 140 | | | |
Amkor Technology, Inc. ($AMKR) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,153 | 1,173 | 1,354 | 1,371 | | 28.8% | 31.0% | 24.9% | 16.3% |
| EBITDA | 208 | 211 | 257 | 357 | | 28.7% | 27.7% | 18.3% | 22.7% |
| Net Income | 64 | 55 | 92 | 127 | | - | - | 70.4% | 27.8% |
Balance Sheet
|
|---|
| Cash | 941 | 783 | 567 | 698 | | -10.8% | 42.0% | -5.3% | -22.0% |
| Short Term Debt | 193 | 201 | 194 | 204 | | -71.4% | -14.8% | 69.6% | 7.1% |
| Long Term Debt | 1,461 | 1,484 | 1,271 | 1,090 | | 13.3% | 24.7% | -0.7% | -22.0% |
Ratios
|
|---|
| Gross Margin | 16.4% | 16.4% | 17.8% | 20.3% | | 2.9% | 2.6% | 1.0% | 1.4% |
| EBITDA Margin | 18.0% | 18.0% | 19.0% | 26.1% | | -0.0% | -0.5% | -1.1% | 1.3% |
| Net Income Margin | 5.5% | 4.7% | 6.8% | 9.2% | | 8.1% | 5.8% | 1.8% | 0.8% |
Peers in Semiconductor Equipment
Below you can find Amkor Technology, Inc. benchmarking vs. other companies in Semiconductor Equipment industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | - | 44.0% | 8.7% | -31.0% | 218.5% |
| DAQO New Energy Corp. ($DQ) | - | 41.1% | -6.7% | 16.0% | 93.0% |
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.7% | 15.5% | -0.2% | 16.3% |
|---|
| Amkor Technology, Inc. ($AMKR) | - | 7.1% | 2.6% | -6.1% | 24.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
| Teradyne, Inc. ($TER) | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% |
| Nova Measuring Instruments Ltd. ($NVMI) | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% |
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 40.0% | 44.0% | 41.2% | 40.5% | 42.7% |
|---|
| Amkor Technology, Inc. ($AMKR) | 18.1% | 18.1% | 16.5% | 16.0% | 17.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% |
| DAQO New Energy Corp. ($DQ) | 43.3% | 49.1% | 36.1% | 27.1% | 38.0% |
| Teradyne, Inc. ($TER) | 3.4% | 29.6% | 27.9% | 30.3% | 33.8% |
| Cabot Microelectronics Corporation ($CCMP) | 23.4% | 27.2% | 31.5% | 20.1% | 31.6% |
| Entegris, Inc. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 11.4% | 16.0% | 16.2% | 11.9% | 15.4% |
|---|
| Amkor Technology, Inc. ($AMKR) | 22.0% | 23.5% | 19.2% | 19.7% | 20.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| DAQO New Energy Corp. ($DQ) | 29.5% | 19.8% | 47.4% | 79.7% | 17.5% |
| Photronics, Inc. ($PLAB) | 10.4% | 20.4% | 17.3% | 32.4% | 11.6% |
| Cabot Microelectronics Corporation ($CCMP) | 4.1% | 4.2% | 3.6% | 5.4% | 11.3% |
| ACM Research, Inc. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| SolarEdge Technologies, Inc. ($SEDG) | 4.3% | 3.5% | 4.1% | 5.1% | 8.7% |
| |
|---|
| Median (24 companies) | 2.2% | 2.8% | 2.9% | 3.2% | 3.3% |
|---|
| Amkor Technology, Inc. ($AMKR) | 16.5% | 13.1% | 12.7% | 11.7% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Teradyne, Inc. ($TER) | -2.9% | 23.8% | 22.6% | 29.2% | 40.3% |
| DAQO New Energy Corp. ($DQ) | 12.7% | 23.2% | 12.2% | 5.6% | 18.5% |
| Entegris, Inc. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 6.9% | 12.2% | 12.1% | 5.5% | 10.2% |
|---|
| Amkor Technology, Inc. ($AMKR) | 10.8% | 13.5% | 8.1% | 7.0% | 12.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
| Xperi Corporation ($XPER) | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x |
| Cabot Microelectronics Corporation ($CCMP) | -1.3x | -1.8x | -1.9x | 3.6x | 2.0x |
| Entegris, Inc. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.3x | -0.7x | -1.0x | -0.4x | -0.4x |
|---|
| Amkor Technology, Inc. ($AMKR) | 1.1x | 0.8x | 0.8x | 0.9x | 0.6x |
