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Amkor Technology, Inc. (AMKR)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$27.36 - $67.66$40.92
Multi-Stage$20.54 - $22.40$21.45
Blended Fair Value$31.19
Current Price$28.40
Upside9.81%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.720.300.220.210.000.000.000.000.000.00
YoY Growth--139.14%35.51%7.62%0.00%0.00%0.00%0.00%-100.00%0.00%0.00%
Dividend Yield--3.99%0.95%0.85%0.95%0.00%0.00%0.00%0.00%0.02%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)307.78
(-) Cash Dividends Paid (M)181.71
(=) Cash Retained (M)126.08
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)61.5638.4723.08
Cash Retained (M)126.08126.08126.08
(-) Cash Required (M)-61.56-38.47-23.08
(=) Excess Retained (M)64.5287.60102.99
(/) Shares Outstanding (M)247.98247.98247.98
(=) Excess Retained per Share0.260.350.42
LTM Dividend per Share0.730.730.73
(+) Excess Retained per Share0.260.350.42
(=) Adjusted Dividend0.991.091.15
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.28%6.28%7.28%
Fair Value$27.36$40.92$67.66
Upside / Downside-3.65%44.10%138.23%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)307.78327.10347.64369.46392.66417.31429.82
Payout Ratio59.04%65.23%71.42%77.62%83.81%90.00%92.50%
Projected Dividends (M)181.71213.37248.29286.76329.08375.57397.59

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.28%6.28%7.28%
Year 1 PV (M)193.74195.58197.42
Year 2 PV (M)204.70208.61212.55
Year 3 PV (M)214.66220.83227.13
Year 4 PV (M)223.67232.29241.16
Year 5 PV (M)231.78243.00254.65
PV of Terminal Value (M)4,023.774,218.534,420.77
Equity Value (M)5,092.325,318.855,553.68
Shares Outstanding (M)247.98247.98247.98
Fair Value$20.54$21.45$22.40
Upside / Downside-27.69%-24.48%-21.14%

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