Ichor Holdings Ltd (ICHR) Stock Analysis
Verdict: WATCH (do not buy)
WFE recovery and sequential non-GAAP margin expansion support a mid-term cycle turn, but high debt, dilution, and insider selling urge patience.
Investment score: 50/100
Analysis as of
Is Ichor Holdings Ltd stock worth reviewing? AI model thesis
The model views Ichor Holdings as an operational recovery play whose structural tailwinds (WFE upcycle, Malaysia/Mexico manufacturing cost reduction) are currently counterbalanced by heavy insider selling, negative free cash flow, and technical weakness. The AI model prefers to wait for price stabilization and positive GAAP FCF before establishing positions.
7-factor investment score
- Valuation: 52/100 (weight 20%)
- Financial Health: 50/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 70/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Ichor Holdings Ltd opportunities and risks
What speaks for ICHR
- Cyclical Wafer-Fab Equipment (WFE) Upcycle
What speaks against ICHR
- Severe Customer Concentration at Major OEMs
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ICHR | n/a | 1.6x | 240.5x | 10.1% | -4.0% | -1.6% |
| COHU | n/a | 4.8x | 123.5x | 39.2% | -7.4% | 1.4% |
| UCTT | n/a | 1.1x | 20.6x | 15.8% | -1.1% | -4.8% |
| AEHR | n/a | 41.0x | n/a | 34.7% | -14.0% | -0.3% |
| PDFS | 164.2x | 7.2x | 47.7x | 71.5% | 4.3% | -0.1% |
| PLAB | 10.0x | 1.9x | 3.4x | 33.7% | 19.0% | 6.6% |
| Peer median | n/a | 4.8x | 20.6x | 34.7% | -1.1% | -0.1% |
Frequently asked questions about Ichor Holdings Ltd (ICHR)
Is ICHR stock a good investment?
The cached TradeMates AI model rates Ichor Holdings Ltd as WATCH (do not buy) with an investment score of 50/100. The model views Ichor Holdings as an operational recovery play whose structural tailwinds (WFE upcycle, Malaysia/Mexico manufacturing cost reduction) are currently counterbalanced by heavy insider selling, negative free cash flow, and technical weakness. The AI model prefers to wait for price stabilization and positive GAAP FCF before establishing positions. This is algorithmic model output, not personal investment advice.
Is ICHR stock a buy?
The TradeMates model verdict for ICHR is WATCH (do not buy) with an investment score of 50/100. Treat this as a model signal to review, not a personal buy recommendation.