ChipMOS TECHNOLOGIES INC. American Depositary Shares (IMOS)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach ChipMOS as a semiconductor assembly and testing business, not a glamorous chip designer, so the key is whether it earns durable returns on the capital tied up in plants. The latest reported quarter—the 2026 second quarter—showed revenue of $7.4B and net income of $891.7M, a 12.08% net margin. The provided figures also show revenue growth of 25.37% and profit growth of 186.37%, which is a sharp cyclical rebound. Cash generation looks impressive on the surface: trailing free cash flow is $740.9M, a 45.9% free cash flow yield against the $1.6B market cap at the 2026-10-13 close. The Piotroski score is 7/9, and the dividend yield is 1.24%. But I am wary. At $72.24, the FairStock P/E is 35.24, and P/B is 3.24, while the Graham Number is only $40.60—a -77.93% margin of safety, meaning price is far above asset-based value. ROE of 9.35% and ROCE of 3.42% suggest modest underlying profitability. The Altman Z-Score of 0.65 signals financial-stress risk, and D/E of 0.64 is not trivial. Short-term ratios like PEG 0.19 and EV/EBITDA 0.43 look cheap, but Altman and Graham disagree. The absence of a Lynch category because only 0 years of filed results are available says the track record is too short for that framework. No durable moat is evident from these figures; scale may help but returns on capital are low. I see a cyclical, capital-intensive supplier with improving results but no clear margin of safety. Before calling it a bargain, I would need evidence that cash flow is sustainable and balance-sheet risk is contained.

In plain English: ChipMOS makes and tests chips for other companies. Sales and profits improved a lot in the latest quarter, and it produces strong cash flow, but the stock price looks high compared with what the company earns and owns. On those basic numbers, it does not look cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer