Fundamental analysis: ACM Research, Inc. (ACMR)

Awarener score: 7.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Modest) and growth (Superb), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

Business has been growing at an extremely fast pace. It's been great when measured against peer companies.
ACM Research, Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 7.5

ACMR profit margins -on goods and services sold- are usually good. They stand slightly better than rival companies.
Business profit on sales tends to be excellent. It's almost average when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain close to average when compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still slightly worse than similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain similar to rivals.
Total net profit tends to be very good when confronted to sales. Company stands similar to comparable firms.

Growth score: 9.0

ACM Research, Inc. profit -on goods and services sold- has been growing at an excellent pace. It's been excellent in relation to competitors.
In recent years, earnings -on operations- have been growing at an excellent step, which has been well ranked against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares encouraging in relation to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be in good shape compared to similar stocks.
In past years, profits -before income taxes- grew at an excellent speed. It was somewhat better than rivals.
In the previous years, growth trend on total net profit has been excellent, and encouraging in relation to peer companies.
Earnings per share have grown at an excellent rhythm in past years. It's been a slight improvement compared to industry peers.

Miscellaneous score: 7.7

ACMR managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been better than most peers.
Research and development expenses consume a moderate portion of revenues. It's weak when measured against competitors.
The company shows good business growth in relation to research and development efforts. It stands in good shape compared to rival companies.

Profitability score: 7.8

ACM Research, Inc. usually gets very good returns on the resources it controls. It proves almost average when measured against peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks similar to competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 4.8

ACMR usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands below average when measured against rival firms.
The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.4

ACM Research, Inc. intangible assets (like brands and goodwill) represent a non-significant portion of resources controlled, according to accounting books, which is safer. It happens to be encouraging in relation to peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be in a very weak position compared to similar firms.
A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks more than average in relation to rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's a disappointment compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are on many months credit. It still ranks last-in-rank when measured against peers.
Normally has more than six months of sales worth in inventory. It comes up as a disappointment compared to competitors.
On average, it takes plenty of months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers before a month since the purchase. It ranks substantially worse when measured against industry peers.
The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's a disappointment compared to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
Resource exploitation is slightly low when yearly sales are considered, business volume should be increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 7.6

ACM Research, Inc. looks cheap in relation to profits and financial position. It happens to be more than average in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains excellent in relation to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still encouraging in relation to industry firms.
In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks better than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks encouraging in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains top-notch against peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 7.0

Company at a glance: ACM Research, Inc. (ACMR)

Sector, industry: Technology, Semiconductor Equipment & Materials

Market Cap: 0.68 billions

Revenues TTM: 0.38 billions

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the Ultra C brand name through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.