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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on ACMR

ACM Research's recent performance was driven by strong Q2 earnings, with the company beating estimates with $0.54 per share, exceeding the Zacks Consensus Estimate of $0.42. Its wafer processing solutions for semiconductor and advanced packaging applications are driving growth. New tools like PECVD and ALD are ramping, fueling margin expansion, with gross margins reaching 50.4% in 2024. The company's strategic positioning in the semiconductor industry and product ramp are key growth drivers.

1.c. Company Highlights

2. Strong Revenue Growth, but Mixed Margins and Guidance

The company reported a strong third quarter 2025 with revenue growing 32% year-over-year to $269 million, a new quarterly record. However, gross margin was 42.1%, at the low end of the target range due to product mix and inventory provisions. Earnings per share (EPS) came in at $0.36, below estimates of $0.47. Shipments were $263 million, up 1% year-over-year.

Publication Date: Nov -20

📋 Highlights
  • Revenue Growth: 32% YoY to $269 million, driven by innovation product demand.
  • Single-Wafer Cleaning: 13% growth, contributing 68% of total revenue with strong global positioning.
  • Advanced Packaging Revenue: 231% surge to 10% of total revenue, led by small tools and new customer wins.
  • Cash Reserves: Increased to $1.1 billion (Q3), up from $483.9 million in Q2.
  • 2025 Revenue Outlook: Narrowed to $875–$925 million (+15% YoY midpoint), with new products driving 2026 growth.

Segment Performance

Revenue from single-wafer cleaning, Tahoe, and semi-critical cleaning tool grew 13% and represents 68% of total revenue. Revenue from ECP, furnace, and other technology grew 73% and represents 22% of total revenue. Advanced packaging revenue, which excludes ECP, was up 231% and represents 10% of revenue. The company is making progress with new products, including panel-level plating technology for advanced packaging.

Guidance and Outlook

The company narrowed its 2025 revenue outlook to a range of $875 million to $925 million, implying 15% year-over-year growth at the midpoint. For next year, analysts estimate revenue growth at 16.7%. The company expects new products to contribute to revenue growth, but Q4 shipment is expected to be down from Q3. As David Wang mentioned, "some customers are asking for delay for maybe Q1 next year," which may impact near-term shipments.

Valuation and Metrics

With a P/E Ratio of 17.32 and P/S Ratio of 2.28, the stock appears to be reasonably valued. The company's ROE (%) is 10.96, and ROIC (%) is 5.23, indicating a decent return on equity and invested capital. The Net Debt / EBITDA ratio is -5.38, indicating a healthy cash position. The company's cash and cash equivalents, restricted cash, and time deposits were $1.1 billion at the end of the third quarter, providing a solid foundation for future growth.

Conclusion on Future Prospects

The company's focus on innovation and expanding its product portfolio is expected to drive long-term growth. With a strong cash position and decent returns on equity and invested capital, the company is well-positioned to capitalize on emerging trends in the industry. However, investors will need to monitor the company's ability to execute on its new product roadmap and manage margins in a competitive landscape.

3. NewsRoom

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ACM Research: Riding China's AI-Driven Capex Wave

Dec -01

Source: seekingalpha.com

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ACM Research: Temporary Q3 Margin Woes Mask The Massive Tailwind Of China's Foreign AI Chip Ban

Nov -25

Source: seekingalpha.com

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ACM Research Delivers Advanced Ultra Lith BK Photoresist Hardening Tool with Industry-Leading UV Curing and Temperature Uniformity

Nov -19

Source: globenewswire.com

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ACM Research Delivers First Horizontal Panel Electroplating Tool Strengthening Its Leadership in Fan-Out Panel-Level Packaging

Nov -17

Source: globenewswire.com

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Is ACM Research Stock a Buy After Investment Firm Seldon Capital Initiated a Large Position?

Nov -16

Source: fool.com

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Bailard Inc. Invests $448,000 in ACM Research, Inc. $ACMR

Nov -15

Source: defenseworld.net

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ACM Research, Inc. $ACMR Shares Purchased by Teacher Retirement System of Texas

Nov -06

Source: defenseworld.net

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ACM Research, Inc. (ACMR) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.90%)

6. Segments

Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment

Expected Growth: 15%

ACM Research's Single Wafer Cleaning, Tahoe, and Semi-Critical Cleaning Equipment growth is driven by increasing demand for advanced semiconductor manufacturing, rising adoption of 5G and IoT devices, and growing need for contamination control in chip production. Additionally, the company's technology advancements, expanding customer base, and strategic partnerships contribute to its 15% growth.

Electro-Chemical Plating (Front-end and Packaging), Furnace and Other Technologies

Expected Growth: 12%

ACM Research's Electro-Chemical Plating, Furnace, and Other Technologies are driven by increasing demand for advanced semiconductor manufacturing, 5G and IoT device proliferation, and growing adoption of electric vehicles. The 12% growth is also fueled by the company's expanding customer base, innovative product offerings, and strategic partnerships.

Advanced Packaging (Excluding ECP), Services & Spares

Expected Growth: 20%

ACM Research's Advanced Packaging (excluding ECP) and Services & Spares segments are driven by increasing demand for 5G, AI, and IoT applications, which require advanced packaging technologies. The growth is also fueled by the rising need for semiconductor test and measurement services, as well as spare parts for wafer fabrication equipment.

7. Detailed Products

TFTF (Tungsten Film Thickness and Film Stress Measurement)

A non-destructive measurement tool for tungsten film thickness and film stress in semiconductor manufacturing

Electrochemical Copper Plating (ECP) Systems

A copper electroplating solution for advanced semiconductor manufacturing, enabling high-aspect-ratio copper interconnects

Sulphuric Acid Recycling Systems

A closed-loop recycling system for sulphuric acid, reducing waste and minimizing environmental impact

Wet Etch and Clean Systems

A range of wet etch and clean solutions for semiconductor manufacturing, including HF, BHF, and SC1/SC2 processes

Plasma Etch and Deposition Systems

A range of plasma etch and deposition solutions for semiconductor manufacturing, including ICP, RIE, and PECVD processes

8. ACM Research, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ACM Research, Inc. is medium due to the availability of alternative products and services in the semiconductor industry.

Bargaining Power Of Customers

The bargaining power of customers for ACM Research, Inc. is low due to the company's strong relationships with its customers and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ACM Research, Inc. is medium due to the presence of multiple suppliers in the industry, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for ACM Research, Inc. is high due to the relatively low barriers to entry in the semiconductor industry and the presence of new entrants in the market.

Intensity Of Rivalry

The intensity of rivalry for ACM Research, Inc. is high due to the competitive nature of the semiconductor industry and the presence of several established players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.00%
Debt Cost 3.95%
Equity Weight 89.00%
Equity Cost 11.76%
WACC 10.90%
Leverage 12.36%

11. Quality Control: ACM Research, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ACM Research

A-Score: 5.3/10

Value: 4.5

Growth: 9.7

Quality: 6.6

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
NVE

A-Score: 5.0/10

Value: 1.6

Growth: 3.3

Quality: 9.1

Yield: 9.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Photronics

A-Score: 4.7/10

Value: 5.9

Growth: 7.3

Quality: 6.8

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
inTEST

A-Score: 4.1/10

Value: 6.7

Growth: 4.6

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
QuickLogic

A-Score: 3.2/10

Value: 6.6

Growth: 5.9

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Trio-Tech

A-Score: 3.0/10

Value: 6.0

Growth: 1.1

Quality: 4.6

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.1$

Current Price

35.1$

Potential

-0.00%

Expected Cash-Flows