On August 25, 2026, ACM Research Inc ACMR shares rose 3.1%, currently trading at $79.77. This move comes amidst a 52-week range of $26.10 to $127.19, reflecting significant volatility and investor interest.
- GF Valueâ„¢ verdict: Current price of $79.77 vs GF Value of $37.03, indicating a 115.4% overvaluation.
- GF Scoreâ„¢: 85/100, suggesting a strong overall performance in key metrics.
- Most notable signal: Insiders sold $46.6M worth of shares over the past 12 months, with no buying activity.
Is ACMR Overvalued or Undervalued?
ACM Research Inc's current price of $79.77 is significantly above the GF Valueâ„¢ estimate of $37.03, which suggests that the stock is overvalued by 115.4%. The GF Valueâ„¢ is GuruFocus' proprietary intrinsic-value estimate derived from historical trading multiples, past business growth, and future performance estimates. Given this substantial gap, investors should exercise caution as the current price does not provide a margin of safety.
The GF Valuation label indicates that ACMR is "Significantly Overvalued." This situation poses a risk, especially for those relying on earnings-based metrics, which may not apply effectively to a company that is currently unprofitable and cash-flow negative. In such cases, Price-to-Sales (P/S) analysis may be more relevant for valuation assessment, as it can provide a clearer picture of a company's value relative to its sales.
How Does ACMR's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 38.0x | 18.5x |
| Forward P/E | 39.7x | N/A |
ACMR's current P/E ratio of 38.0x is 106% above its 5-year median P/E of 18.5x, indicating that the stock is trading at a premium compared to its historical valuation. This P/E analysis supports the GF Valueâ„¢ verdict of being overvalued, suggesting that investors may be pricing in future growth that has yet to materialize.
What Does ACMR's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures a company's performance across various key metrics, assessing factors such as financial strength, profitability, growth, valuation, and momentum. ACMR's score of 85/100 highlights strong overall performance, particularly in growth and profitability, while indicating weaknesses in valuation.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 85 |
| Financial Strength | 8/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 1/10 |
| Momentum | 9/10 |
ACMR's strengths lie in its exceptional growth ranking (10/10) and high profitability (9/10), indicating solid operational performance. However, the valuation rank of 1/10 raises concerns, aligning with the GF Valueâ„¢ assessment of overvaluation and suggesting that the current price may not be justified based on its financial metrics.
What Are Gurus and Insiders Doing with ACMR?
Currently, 8 gurus hold ACMR shares, with 5 adding to their positions and 4 trimming their stakes in recent quarters. This mixed guru activity indicates a varied sentiment among institutional investors, with some confident in the company's future prospects while others are cautious.
In contrast, insider activity has been notably negative, with insiders selling $46.6 million worth of shares over the past 12 months and no buying activity reported. This trend may signal a lack of confidence from company insiders regarding the stock's future performance, potentially raising concerns for prospective investors.
What This Means for Investors
Based on the analysis, ACM Research Inc ACMR is deemed overvalued at its current price of $79.77 in relation to the GF Valueâ„¢ estimate of $37.03. The significant gap between the current price and the intrinsic value suggests that investors should proceed with caution. The recent insider selling further compounds this caution, reflecting potential concerns about the company's future. For more detailed insights, visit the ACM Research Inc (ACMR) stock page and explore additional metrics on the GF Valueâ„¢ page.
Frequently Asked Questions
What is ACMR's GF Scoreâ„¢?
ACMR has a GF Scoreâ„¢ of 85/100, indicating strong performance in several key areas, particularly in growth and profitability.
Is ACMR overvalued or undervalued?
ACMR is considered overvalued based on the GF Valueâ„¢ estimate of $37.03, significantly higher than the current trading price of $79.77.
What is ACMR's P/E ratio?
ACMR's P/E ratio is 38.0x, which is substantially above its 5-year median P/E of 18.5x, reinforcing the notion that the stock is overvalued.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
