Investment Thesis
ACM Research demonstrates solid revenue growth (+15.2% YoY) and strong profitability with 44.4% gross margins and 10.4% net margins, supported by excellent liquidity (3.27x current ratio) and minimal leverage. However, the company faces significant concerns with negative free cash flow (-66.6M) and declining diluted EPS (-10.5% YoY) despite flat net income, suggesting potential share dilution or deteriorating operational cash conversion that warrants investigation.
ACMR Strengths
- Revenue growth of 15.2% YoY demonstrates market demand and sales momentum
- Strong gross margins at 44.4% indicate pricing power and efficient manufacturing
- Exceptional balance sheet with 3.27x current ratio, 0.15x debt/equity, and 139.8x interest coverage providing financial flexibility
- Healthy net margin of 10.4% and 2.9B in total assets showing established market position
ACMR Risks
- Negative free cash flow of -66.6M (-7.4% FCF margin) with operating cash flow of -10.3M raises sustainability concerns despite profitability
- Diluted EPS declined 10.5% YoY while net income was flat, indicating significant share dilution or reduced share count impact
- Capital expenditures of 56.3M combined with negative operating cash flow suggests insufficient internal cash generation to fund growth investments
- Low return metrics (ROE 6.4%, ROA 3.3%) indicate suboptimal asset utilization relative to capital invested
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Gross margin sustainability as revenue scales
- Share count and dilution from recent Form 4 insider filings
- Capital efficiency and ROE improvement trajectory
ACMR Financial Metrics
ACMR Profitability Ratios
ACMR Balance Sheet & Liquidity
ACMR 5-Year Financial Trend
5-Year Trend Summary: ACM Research, Inc.'s revenue has grown significantly by 104% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.16 reflects profitable operations.
ACMR Growth Metrics (YoY)
ACMR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2019 | $20.9M | $435.0K | $0.02 |
| Q1 2019 | $9.7M | $1.9M | $0.10 |
| Q3 2018 | $4.9M | -$955.0K | $-0.17 |
| Q2 2018 | $8.8M | $435.0K | $0.02 |
| Q1 2018 | $5.7M | -$2.1M | $-0.18 |
| Q3 2017 | $4.9M | -$191.0K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ACMR Capital Allocation
ACMR SEC Filings
Access official SEC EDGAR filings for ACM Research, Inc. (CIK: 0001680062)