Analysts rate Alpha and Omega Semiconductor Ltd. (AOSL:NSD) with a Hold rating and a $60 target

STA Research
by: STA Research
Alpha and Omega Semiconductor Ltd.

Based on the Alpha and Omega Semiconductor Ltd. stock forecast from 2 analysts, the average analyst AOSL stock price target is USD 60.43 over the next 12 months. Alpha and Omega Semiconductor Ltd’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Alpha and Omega stock is Neutral, which is based on 6 positive signals and 6 negative signals. At the last closing, AOSL stock price was USD 42.00AOSL stock price has changed by +0.16% over the past week, +1.60% over the past month and +44.98% over the last year.

About Alpha and Omega Semiconductor Ltd. (AOSL:NSD):

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, e-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding.

What we like:

Underpriced compared to earnings:

Alpha and Omega stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value:

AOSL stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the AOSL stock news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow:

AOSL stock had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

Alpha and Omega stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What we don’t like:

Low market capitalization:

Alpha and Omega stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk-adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for Alpha and Omega stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Poor capital utilization:

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets:

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis:

AOSL stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.