Ichor Holdings Ltd (NASDAQ:ICHR) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ICHR, it is a financially-sound company with an impressive track record and an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Ichor Holdings here.
Very undervalued with outstanding track record
ICHR is expected to churn out cash in the short term, with its operating cash flow predicted to expand by 97.56%. This underlies the notable 30.23% return on equity over the next few years leading up to 2021. In the past couple of years, ICHR has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 25.75%, which paints a buoyant picture for the company.
ICHR’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. ICHR appears to have made good use of debt, producing operating cash levels of 0.26x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Ichor Holdings, there are three fundamental factors you should look at:
- Valuation: What is ICHR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ICHR is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does ICHR return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ICHR as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ICHR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.