Ichor (US:ICHR)2020-06-09 21:56Investment Highlights - Ichor is a leading supplier of fluid delivery systems for the semiconductor capital equipment industry[6] - The company's revenue has outperformed the industry with a 20% Compound Annual Growth Rate (CAGR) from 2014 to 2019, compared to approximately 9% for Wafer Fab Equipment (WFE)[6] - Strategic acquisitions have expanded Ichor's capabilities and served available market (SAM) by approximately $2.5 billion[6] - Ichor experienced approximately 100% Earnings Per Share (EPS) growth in the first half of 2020 compared to the first half of 2019, with revenue growth of 52% year-over-year[6] Market and Growth Strategy - Ichor is expanding its footprint and market share in weldments and precision machining[15] - The company is focused on gaining share in gas delivery, liquid delivery, and precision machining[15] - Ichor's served available market (SAM) is expanding to $4 billion with multiple opportunities for growth[16] - Share gains contributed $70 million of incremental revenues in 2019, with an annualized run-rate above $100 million entering 2020[15] Financial Performance - Ichor's target model includes a gross margin of 19%-20%, operating margin of 13%-14%, and Non-GAAP net margin of 12%+[19] - The company completed $91.4 million in share repurchases from 2018-2019 at an average price of $20.64[18] - Q2'20 guidance includes revenues of $180-$220 million and EPS of $0.32-$0.54[18]