GTAT  GT Advanced Technologies Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

60.1M

Vuru Grade

74.83/100

Current Price

$0.44
+0.0000 (+0.0000%)

Growth Price

$6.06
Undervalued by 1,285.80%

Stability Price

$3.35
Undervalued by 666.78%

Company Metrics

  • P/E 3.37
  • P/S 0.39
  • P/B 0.28
  • EPS -1.563
  • Cash ROIC 133.91%
  • Cash Ratio 2.84
  • Dividend 0 / 0%
  • Avg. Vol. 25.06M
  • Shares 122.48M
  • Market Cap. 60.1M

Company Description

GT Advanced Technologies Inc., formerly GT Solar International, Inc., through its subsidiaries, is a global provider of polysilicon production technology and multicrystalline ingot growth systems and related photovoltaic manufacturing services for the solar industry, and sapphire growth systems and material for the light emitting diode (LED) and other specialty markets. The Company’s customers i... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Understanding GT Advanced Technology, Inc.'s Bankruptcy
Motley Fool - Oct 6, 2014
On October 31, 2013, GTAT Corporation ("GTAT"), a wholly owned subsidiary of GT Advanced Technologies Inc, and Apple ("Apple") entered into a Master Development and Supply Agreement and related Statement of Work (the "MDSA"), pursuant to which ...
Apple supplier GT Advanced shocks with bankruptcy filing - Reuters UK
Apple Sapphire Glass Supplier GT Advanced Files For Bankruptcy, Stock Falls 90% - Business Insider
GT Advanced Technologies Confirms The Zero
Seeking Alpha - Mar 16, 2016
Back in October 8, when GT Advanced Technologies (OTCPK:GTATQ) filed for bankruptcy, a lot of speculation swirled around the stock.
GT Advanced Technologies emerges from bankruptcy
New Hampshire Business Review - Mar 24, 2016
Merrimack-based GT Advanced Technologies Inc. has emerged from bankruptcy, led by its current CEO, and leaving its former creditors with little and its former shareholders with nothing.
GT Advanced Technologies Appoints David Keck as CEO; Current CEO Tom Gutierrez ...
GlobeNewswire (press release) - Aug 10, 2015
MERRIMACK, N.H., Aug. 10, 2015 (GLOBE NEWSWIRE) -- GT Advanced Technologies Inc. (OTC:GTATQ), today announced that Tom Gutierrez is retiring from the company and has resigned as Chief Executive Officer and as a director.
GT Advanced CEO Gutierrez resigns - Seeking Alpha
Gutierrez resigns as CEO of embattled GT Advanced Technologies - New Hampshire Business Review
GT Advanced Technologies' Merlin: The Formation Of A Giant In 2015 And Beyond
Seeking Alpha - Aug 20, 2014
The response to GT's Merlin product offering has been "phenomenal" and the company expects to select "3 to 4 mega customers.
Apple iPhone 6 Release Date: 5 Stocks To Buy AFTER The iPhone 6 Comes Out - International Business Times
Hyperion: A Game-Changer For GT Advanced Technologies?
Seeking Alpha - Apr 2, 2014
In November 2012, GT Advanced Technologies (GTAT) placed a big bet on an unproven technology, which is about to change the fortunes of the company, along with the dynamics of the industry - the technology under discussion is the "Hyperion" - a ...
Local contractors targeted by GT Advanced Technologies lawsuits
New Hampshire Business Review - Sep 14, 2016
GT Advanced Technologies Inc. is suing local construction contractors for hundreds of thousands of dollars and might sue its former officers as well in an attempt to collect a bit more money to distribute to other creditors.
GT Advanced Technologies: What Went Wrong And What Investors Need To Know ...
Seeking Alpha - Oct 9, 2014
We believed, based on our reading of the Apple contract, that Apple's loan was secured by the assets of LLC setup by GTAT for this business and not GT Advanced Technologies Inc. We saw that construct as a fair risk given the potential for a large return.
Why GT Advanced Technologies (GTAT) Stock Is Plummeting Today - TheStreet.com
Sapphire Glass: How Did Apple Get It So Wrong With GT Advanced Technologies? - International Business Times
EXCLUSIVE: Former Apple vendor GT Advanced Technology suing Arizona Commerce ...
Phoenix Business Journal - Oct 6, 2016
GT Advanced Technologies took over a vacant 1 million-square-foot, never-used First Solar manufacturing facility in east Mesa in a highly touted win for the Valley.
GT Advanced Technologies Releases Next Generation Silicon Carbide Platform ...
GlobeNewswire (press release) - Jul 13, 2017
MERRIMACK, N.H., July 13, 2017 (GLOBE NEWSWIRE) -- GTAT Corporation (GT) announced that it has launched for commercial sale a silicon carbide production solution with a stable and repeatable process, capable of producing high-quality, ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for GTAT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate GTAT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.44 Current Price

$6.06 Growth Price (DCF)

Undervalued by 1,285.80%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$3.35 Stability Price (EPV)

Undervalued by 666.78%


Discount Rate: 15.0%

$15.50 Book Price

Undervalued by 3,444.28%


Varying Cash Return on Invested Capital over the past 5 years

GTAT has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

GTAT has created $133.91 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20092010201120122013
Free Cash Flow 142.36M 142.70M 220.51M 169.52M -198.98M
divided by
Invested Capital 55.93M 58.50M 221.63M 153.60M 513.40M
Cash ROIC 254.53% 243.92% 99.50% 110.36% -38.76%

Varying Return on Equity over the past 5 years

GTAT has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

GTAT has generated $54.62 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20092010201120122013
Net Income 87.97M 87.26M 174.76M 183.40M -82.80M
divided by
Stockholders' Equity 81.91M 178.99M 201.94M 331.55M 332.41M
Return on Equity 107.40% 48.75% 86.54% 55.31% -24.91%

Mediocre Business Performance over the past 6 years

GTAT isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

GTAT has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Free Cash Flow -3.48M 142.36M 142.70M 220.51M 169.52M -198.98M

Weak Balance Sheet

GTAT's financial position is not ideal. The key is to check whether GTAT is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Cash 54.84M 107.15M 250.72M 362.75M 350.90M 498.21M
Current Assets 537.89M 632.02M 600.01M 824.74M 814.50M 582.97M
Total Assets 600.61M 737.42M 732.08M 1.13B 1.13B 1.19B
Current Liabilities 504.85M 574.34M 422.86M 541.91M 628.09M 175.67M
Total Liabilities 508.97M 655.52M 553.10M 924.35M 801.04M 854.88M
Stockholder' Equity 91.64M 81.91M 178.99M 201.94M 331.55M 332.41M
Current Ratio 1.07 1.10 1.42 1.52 1.30 3.32
TL-to-TA 0.85 0.89 0.76 0.82 0.71 0.72

Consistent Reinvestment of Profits over the past 6 years

GTAT has consistently retained profits. This may put GTAT in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, GTAT can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Retained Earnings 10.82M 8.79M 96.05M 80.20M 199.00M -26.12M
Retained Earnings Growth - -18.70% 992.33% -16.50% 148.13% -113.12%

Competitive Industry over the past 6 years

GTAT is likely operating in an industry with medium to low barriers to entry. This may mean that GTAT doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that GTAT invests heavily in R&D and Sales, General & Administrative expenses.

Only $9.67 of every $100 of Revenue have been profit, on average over the past 6 years.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Net Income 36.11M 87.97M 87.26M 174.76M 183.40M -82.80M
divided by
Revenue 244.05M 541.03M 544.25M 898.98M 955.71M 298.97M
Net Profit Margin 14.79% 16.26% 16.03% 19.44% 19.19% -27.70%

Varying Pricing Power over the past 6 years

GTAT has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$47.62 of every $100 worth of sales have been Gross Profit, on average over the past 6 years.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Gross Profit 92.34M 214.67M 218.98M 378.00M 905.83M 93.05M
divided by
Revenue 244.05M 541.03M 544.25M 898.98M 955.71M 298.97M
Gross Margin 37.84% 39.68% 40.24% 42.05% 94.78% 31.12%

Low Capital Intensity over the past 6 years

GTAT has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that GTAT may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

15.04% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Capital Expenditure 5.01M 10.51M 4.57M 31.26M 48.15M 39.88M
divided by
Net Income 36.11M 87.97M 87.26M 174.76M 183.40M -82.80M
Capital Expenditure Ratio 13.87% 11.95% 5.24% 17.89% 26.26% -48.16%

Inconsistent Dividend History over the past 6 years

GTAT has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Dividend Paid - 89.99M - - - -
divided by
Shares Outstanding 144.06M 144.47M 145.39M 140.90M 126.05M 122.48M
Dividend Paid Per Share - 0.62 - - - -
Price at Year End 2.65 5.62 9.01 7.24 2.94 8.80
Dividend Yield - 11.08% - - - -

History of Stock Buybacks over the past 6 years

GTAT has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
200820092010201120122013
Shares Outstanding 144.06M 144.47M 145.39M 140.90M 126.05M 122.48M
Stock Bought Back - -0.29% -0.63% 3.19% 11.78% 2.91%
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