Ichor Holdings (NASDAQ:ICHR)

CAPS Rating: 3 out of 5

ICHR News and Commentary

  • About timeMarch 10, 2018 Blog at The Motley Fool

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All Players

31 Outperform
3 Underperform
 

All-Star Players

7 Outperform
2 Underperform
 

Wall Street

0 Outperform
0 Underperform
 

Top ICHR Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

ikkyu2 (98.16)
Submitted February 17, 2018

14 months post-IPO, this semiconductor-services engineering company has gobbled up two competitors who work for its main customers and made them immediately accretive to earnings. Debt of 330M on a market cap of 644M looks ominous - until you realize… More

Top Bear Pitch

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ICHR VS S&P 500 (SPY)

ICHR Summary

Recent Community Commentary

Read the most recent pitches from players about ICHR.

Recs

0
Member Avatar Capitalism (68.00) Submitted: 6/6/2018 3:22:59 PM : Outperform Start Price: $25.59 ICHR Score: -19.63

Richard Marzouka (SA) pick

Recs

1
Member Avatar ikkyu2 (98.16) Submitted: 2/16/2018 8:09:32 PM : Outperform Start Price: $24.85 ICHR Score: -19.04

14 months post-IPO, this semiconductor-services engineering company has gobbled up two competitors who work for its main customers and made them immediately accretive to earnings. Debt of 330M on a market cap of 644M looks ominous - until you realize that in 5 months they squeezed 80M in earnings - accretive earnings, not revenue - out of one of those acquisitions. There are different ways you can calculate, but right now they're running a trailing P/E of 10 and annual earnings growth is running 80%.

They're looking for more acquisitions right now, and their CEO got a bit of flak for pointing out he wants to use the debt markets and earnings, not equity, to get that goodwill onto the balance sheet. He also pointed out that a dividend is the last thing on his mind. You can throw stones at that if you want, but I will not - this kind of aggressive organic growth strategy is just what I want to see in a company. If I wanted 7% returns, I'd buy the S&P; I want better, and this is exactly how it is made.

The bear pitch is that this is an engineering company, highly specialized; its moat is its engineering talent and project experience, which can be costly to retain and not valuable during a downturn. As far as I can tell, this company sits between Praxair and AMAT, the way GHM sits between an oilfield/refinery operator and the customers of refinery products; they get involved in the design stage and use their process know-how to help the company use a variety of gases and liquids to build a better semiconductor more cheaply.

Could *you* do that job? I doubt it. I sure couldn't. That's a moat, and if they're buying up their small competitors that moat can only broaden.

The real bear pitch is that it's easy to see where a large semi like AMAT is offloading macro-risk onto a little firm like this; like GHM, the overhead could get really rough during a downturn, especially if a customer chooses to look elsewhere. This is called risk. It is why we invest in stocks, not fixed income. I like the economy, I like the sector, I like the operational strategy, and I *really* like the valuation, so I am aboard for the ride.

Recs

1
Member Avatar SaintCroix (99.25) Submitted: 1/20/2018 11:10:22 PM : Outperform Start Price: $32.56 ICHR Score: -36.30

Stock doubled last year and it's still cheap.

P/E (trailing) 17
P/E (forward) 8
PEG 0.27

They design and build chemical delivery systems for manufacturers of semiconductor equipment. Two of their major customers are Applied Materials and Lam Research, and they've been customers for 15 years.

Last year sales grew by 40%. Outperform.

Leaderboard

Find the members with the highest scoring picks in ICHR.

Score Leader

SeriousK

SeriousK (29.16) Score: +82.13

The Score Leader is the player with the highest score across all their picks in ICHR.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
SeriousK 29.16 12/13/2016 Outperform 5Y $10.26 +107.70% +25.57% +82.13 0 Comment
jpwills99 33.04 6/25/2018 Underperform 1Y $21.77 -2.11% +4.25% +6.36 0 Comment
ovidio47 < 20 8/8/2018 Outperform 5Y $21.51 -0.93% -0.12% -0.81 0 Comment
WildShaman 85.10 7/9/2018 Outperform 5Y $22.23 -4.14% +2.69% -6.82 0 Comment
peden3 50.77 8/22/2017 Outperform 3M $19.35 +10.13% +17.03% -6.90 0 Comment
stereotyp72 74.40 7/9/2018 Outperform 5Y $22.37 -4.74% +3.08% -7.82 0 Comment
marshgerda 66.81 4/24/2018 Outperform 5Y $21.89 -2.65% +6.47% -9.12 0 Comment
ACAL65 87.15 7/10/2017 Outperform 5Y $20.70 +2.95% +17.50% -14.55 0 Comment
stacksalot < 20 2/9/2018 Outperform 5Y $22.79 -6.49% +9.30% -15.80 0 Comment
ikkyu2 98.16 2/20/2018 Outperform 5Y $24.85 -14.25% +4.79% -19.04 1 Comment

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