Overall Score

Revenue Model

ACMR remains a semiconductor equipment supplier with solid gross margins of 43.8% and operating margin of 13.3%.

Valuation is still reasonable on sales at 4.52x EV/Sales TTM, but profitability is uneven with negative free cash flow yield of -2.3%.

Profitability Efficiency

Return metrics are modest, with ROE at 9.5%, ROIC at 4.4%, and ROA at 4.4%.

Working-capital efficiency remains weak, with a 703-day operating cycle and 546-day cash conversion cycle driven by high inventory and receivables days.

Balance Sheet Capital Allocation

The balance sheet remains solid with a current ratio of 3.66x, cash ratio of 1.26x, and debt-to-equity of 0.19x.

Net debt is negative relative to EBITDA, indicating a net cash position and limited leverage risk.

Cash Flow Quality

Cash generation is currently weak, with operating cash flow and free cash flow both negative on a TTM basis.

Capex intensity remains meaningful at 10.9% of revenue, which continues to pressure near-term free cash flow.