My curated US stocks for 2025

Tips D – US Stock Exchanges. A summary of the fundamental analysis of my curated US-listed companies that I covered in 2025.

Investing in US stocks requires more than just following trends. It demands a deep dive into fundamentals, financial strength, and long-term business viability. In this article, I provide concise summaries of the US-listed companies I have analysed in detail and published elsewhere.

Each stock is evaluated based on several characteristics, such as profitability trends, financial health, and competitive positioning. I will also summarize the valuation, helping long-term investors assess potential risks and rewards.

This is a living article, meaning I will continuously update it with new stock analyses throughout the year. Whether you are searching for undervalued opportunities, assessing turnaround plays, or looking for stable income stocks, these insights will provide a data-driven perspective on each company's position.

Each company covered here is a standalone summary of my company analysis and valuation. Stay tuned for regular updates as I expand this curated list of deep-dive stock research.

Should you go and invest in them? Well, read my Disclaimer.

Graham Corporation

Impinj

Microchip Technology

Westlake Chemical Partners

Westlake Corp

This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you. Learn more.

Graham Corporation’s Bold Bet: Growth Play or M&A Gamble?

Graham Corporation specializes in mission-critical fluid, power, heat transfer, and vacuum technologies for industries including defense, space, energy, and process applications.

Over the past decade, the company has diversified its product portfolio and shifted focus such that defense has overtaken refining as the largest revenue contributor. This transformation aligns with industry growth trends.

Revenue Growth & Profitability Trends

2014-2025 revenue growth. 6.1 % CAGR, with the bulk of growth occurring post-2021.

With no M&A activity before 2021, organic growth was effectively flat or negative.

Net income declined from 2014-2022, bottoming out in 2022 due to cost overruns on a U.S. Navy defense contract and higher SGA expenses.

ROIC averaged 10 %, ROE just 2 %, indicating minimal shareholder value creation.

Operational Efficiency & Cost Structure

Graham has placed significant emphasis on operational improvements post-2022, especially following the cost overrun on its defense contract.

Efficiency metrics (2022-2025)

Operating profit margin & ROA improved.

Inventory turnover & operating expenses worsened.

Capital efficiency (Reinvestment margin, asset turnover) showed gains.

Margins show a positive trend

Gross profit margin and contribution margin have been improving since 2022.

Operating profit margin improved post-2023, reversing a decade-long decline.

Breakeven concerns. The company operates close to breakeven, meaning that revenue growth and margin expansion must improve further.

M&A Strategy & Effectiveness

Graham plans continued M&A to supplement organic growth, as per its December 2024 Noble Conference presentation.

M&A performance (2022-2025).

US 81 million spent on acquisitions (Barber-Nichols & P3).

9 % ROIC in 2025 suggests a 9-year payback period assuming all returns were M&A-driven.

Reinvestment rate concerns

Historically 86 % of NOPAT (high but sustainable).

Theoretical rate (per fundamental growth equation) suggests 61 % would be ideal, indicating a potential overinvestment risk.

Financial Position

GHM remains financially sound, allowing it time to execute its strategy:

Cash Reserves: USD 32 million (13 % of total assets).

Debt-Equity Ratio: 6 % (down from 28 % in 2022).

Cash Flow Strength:

Positive operating cash flow in 10 out of the last 12 years.

USD 147 million operating cash flow (2014-2025) vs USD 34 million net income, reflecting strong cash conversion.

Capital allocation discipline. Operating cash flow covered CAPEX and acquisitions, with excess used to reduce debt and return value to shareholders.

Valuation & Investment Risk

Intrinsic value of USD 52 per share vs. market price USD 43 (Jan 8, 2025). This is a 21 % margin of safety (below the 30 % target).

Assumptions:

Continued M&A-driven revenue boost (+ 20 % in Year 1).

Gradual decline to 4 % organic growth by Year 6.

Efficiency improvements (about 10 %) over the next 6 years.

Risk Factors:

M&A execution risk. Can Graham find and integrate more acquisitions?

Operational risks. Will efficiency gains materialize as projected?

For details of the analysis and valuation, refer to 10 Jan 2025 Seeking Alpha article “Graham Corporation's Struggle Is Bearing Fruits, But It Is Not Over Yet”

Graham Corporation’s Bold Bet: Growth Play or M&A Gamble?

Impinj: Riding the IoT Boom, But Is Its Stock a Ticking Time Bomb?

Impinj operates in the Internet of Things (IoT) sector, providing RFID-based solutions that connect physical items to the internet for tracking, management, and data analytics. The company primarily generates revenue from two product segments:

Endpoint ICs – Small chips attached to products for tracking.

Systems – Readers, gateways, software, and cloud services for analyzing collected data.

Revenue Growth & Industry Outlook

The IoT market is expected to grow at a double-digit rate, with forecasts projecting a CAGR between 18.8% and 26% over the next decade.

However, while the industry is expanding, Impinj has yet to achieve sustained operating profitability.

Profitability Challenges & Turnaround Paths

Despite strong revenue growth, Impinj has reported net losses since its 2016 IPO.

Break-even revenue challenge. Estimated at USD 370 million, but 2025 projected revenue is only USD 345 million.

Margin stability issues. Contribution and gross profit margins have remained stagnant over the past decade.

Fixed cost pressures. SGA, R&D, and other fixed expenses have constrained profitability.

Paths to turnaround:

Revenue growth. Sustained double-digit revenue growth could push Impinj past break-even.

Margin improvements: A USD 15 million annual licensing fee (from the legal settlement) could boost gross margins by 12%.

Cost optimization. Fixed cost as a percentage of revenue has declined post-2020, signalling potential for improved operating leverage.

Peer Comparison

Compared to industry peers in the RFID and IoT connectivity sectors, Impinj struggles with:

Weak profitability – Negative EBIT margins and consistent net losses.

Cash flow challenges – Free cash flow margins have remained negative.

Low capital efficiency – Impinj’s return on capital lags behind peers.

On the positive side, larger industry players have demonstrated that profitability is achievable with scale, suggesting Impinj could turn around if it continues growing.

Financial Position

Impinj has a moderately sound financial position despite persistent losses:

USD 170 million in cash (36% of total assets as of Sep 2024).

Debt-to-capital ratio. 68%, down from a 2021 peak of 104% (peer average: 49%).

Cumulative operating cash flow: USD 9 million despite cumulative net losses of USD 219 million.

While Impinj has historically struggled with consistent positive cash flow, its recent cash balance indicates it is not in immediate danger of a liquidity crisis.

Valuation & Investment Risk

Intrinsic value estimate: USD 42 per share compared to market price (Jan 2025): USD 143 per share. There is no margin of safety.

Key valuation assumptions:

5-year revenue ramp-up to USD 788 million.

Contribution margin improvement from licensing fees.

No significant additional margin expansion beyond historical averages.

For the current stock price to be justified, Impinj would need to sustain 26 % annual revenue growth and significantly improve contribution margins - a scenario with little historical precedent.

For details of the analysis and valuation, refer to 14 Jan 2025 Seeking Alpha article “Impinj Is Taking Off, But The Market Has Overestimated Its Profit Path”

Impinj: Riding the IoT Boom, But Is Its Stock a Ticking Time Bomb?

Microchip Technology: A Hidden Crisis No One’s Talking About?

Microchip Technology operates in the semiconductor sector, specializing in embedded control solutions. While the company attributes its recent revenue decline to macroeconomic conditions and industry inventory adjustments, financial trends suggest deeper issues, particularly in product development.

Revenue Growth and Competitive Position

Long-term growth. From 2016 to 2025, revenue grew at an 11% CAGR, higher than the projected 5.79 % to 7.2 % industry growth rate.

Growth through acquisitions. Over the past decade, acquisitions (USD 11 billion) far outpaced CAPEX investments (USD 2 billion), implying limited organic growth.

Organic growth concerns. Since 2020, with minimal acquisitions, revenue grew only at 1 % CAGR, suggesting in-house product development struggles.

Industry comparison: In FY2024, while the global semiconductor sector grew, Microchip Technology's revenue declined by 9.5 %, underperforming peers.

Cost Structure and Profitability Challenges

High fixed-cost business model. Fixed costs account for over two-thirds of total costs, making revenue declines highly impactful on profitability.

Declining profitability since 2023: Despite consistent R&D investment (about 15 % of revenue), declining contribution margin since 2020 suggests inefficiencies.

Operational adjustments. The company is shutting down Fab 2 to save USD 90 million annually, but past efficiency trends raise concerns about achieving full cost benefits.

Peer Performance

Revenue performance. While Microchip Technology had strong historical revenue growth, 2023 to 2024 revenue decline (- 9.5 %) was steeper than peers' average (- 0.9 %).

Profitability Metrics:

EBIT margin, among the best in 2024.

Return on capital: Improved from 2020 to 2023 but flattened in 2024.

Free cash flow margin: Stronger than some peers.

EPS growth: Lagging behind competitors.

Financial Position

Strong cash flow generation. USD 19.4 billion in operating cash flow (2016 to 2025) vs. USD 8.2 billion in PAT.

Debt Concerns. High 51 % debt-to-capital ratio (sector average: 6 %) is mitigated by strong cash flow generation.

Capital Allocation: Efficient, with surplus cash used for shareholder returns rather than excessive reinvestment.

Turnaround Challenges

Product development Issues likely. Revenue decline in a growing industry suggests weak product competitiveness rather than pure economic factors.

R&D spending vs effectiveness. While R&D investment has been stable, financial trends indicate difficulty translating it into successful new products.

Cost-cutting alone won't suffice. While cost reduction (e.g., Fab 2 closure) is necessary, a turnaround requires a stronger product pipeline.

Valuation & Investment Risk

Expensive compared to peers: Higher P/S and EV/EBIT multiples despite revenue struggles.

Uncertain turnaround timeline. If product development is the core issue, recovery could take several years, making the stock risky at current valuations.

Potential misinterpretation risk: The financial interpretation aligns with possible product challenges, but a deeper technical assessment is needed.

For details of the analysis and valuation, refer to the 3 Jan 2025 Seeking Alpha article “Microchip Technology May Not Be Addressing The Correct Issues”

Westlake Chemical Partners: High Yields, But Is Growth Off the Table?

Westlake Chemical Partners (WLKP) is a master limited partnership formed by Westlake Corporation to own and operate ethylene production facilities. The company generates revenue by selling 95% of its ethylene output to Westlake under a long-term Ethylene Sales Agreement, ensuring fixed-margin pricing and cost recovery.

WLKP owns:

Three ethylene production facilities with a capacity of 3.7 billion pounds per year.

A 200-mile ethylene pipeline.

This structure limits revenue growth but provides predictable cash flows and profitability.

Revenue Growth & Industry Outlook

WLKP’s revenue has remained flat over the past decade (USD 1.1 billion in 2024 vs USD 1.0 billion in 2015), driven by:

No major capacity expansion or acquisitions.

Fixed-margin pricing, which prevents margin expansion.

Cyclical ethylene pricing, causing short-term revenue fluctuations.

Ethylene market growth remains modest:

US demand grew 4 % annually (2022 to 2024).

Global market projected to grow at 5.3% CAGR (2024 to 2032).

Since WLKP’s revenue is tied to ethylene volume rather than price, long-term growth potential is limited.

Profitability & Efficiency Trends

Despite stagnant revenue, WLKP has delivered strong returns:

Average ROIC: 28% (well above cost of capital).

Average ROE: 38%, amplified by MLP tax advantages and leverage.

However, efficiency trends have been mixed:

Stable operating profit margin but no significant improvements.

Declining contribution margin, indicating rising variable costs.

No major improvements in capital efficiency over the past decade.

The low fixed-cost model (17% of total costs) provides stability, but caps upside potential during industry booms.

Financial Stability & MLP Metrics

As an MLP, WLKP focuses on cash distributions rather than growth. Key metrics:

Distributable cash flow. Stable, but growth has slowed post-2016.

Distribution coverage ratio. Near 1.0, indicating WLKP has consistently met payout obligations.

Debt/EBITDA. Below 1.0, showing strong leverage management.

While the declining Distributable cash flow trend is a concern, WLKP remains financially sound with a sustainable payout structure.

Competitive Position & Peer Comparison

WLKP is the smallest among its ethylene sector peers and has the lowest revenue growth rate (2015 to 2024). However, it outperforms competitors in:

Return on capital – Most stable among peers.

Profitability – Maintains a fixed-margin advantage, while peers have declining EBIT margins.

Cash flow stability – Unlike peers, WLKP avoids the volatility of commodity price swings.

This defensive structure protects downside risk but limits upside potential.

Valuation & Investment Risk

Intrinsic value estimate of USD 24 per share compared to the market price (Jan 2025) of USD 24 per share. There is no margin of safety.

Key valuation assumptions:

Zero revenue growth (reflecting historical trends).

Distributable cash flow-based valuation, accounting for MLP distribution model.

No margin expansion, as the fixed-margin contract prevents pricing power improvements.

Potential upside exists if unexpected capacity expansion or acquisitions occur, but no catalysts currently support growth assumptions.

For details of the analysis and valuation, refer to 17 Jan 2025 Seeking Alpha article “Westlake Chemical Partners: Despite Its High Returns, It Is Not An Opportunity For Value Investors”

Westlake Corp: A Growth Machine or an Acquisition Black Hole?

Westlake Corporation is a diversified global materials and specialty chemicals company, operating under two business segments:

Performance and essential Materials.

Housing and Infrastructure Products.

The Performance and Essential Materials segment contributes about two-thirds of revenue, while the U.S. accounts for 70% of total sales.

Revenue Growth & Profitability Trends

Westlake delivered 11.7 % revenue CAGR over the past decade, driven by acquisitions rather than organic growth.

PAT has been highly volatile and lower in 2024 than in 2015.

ROIC and ROE have declined over time, despite staying above the cost of capital.

Operating margins are deteriorating, with:

Gross profit and contribution margins on a downtrend.

SGA margin increasing, pushing fixed costs up (from 14% of revenue in 2015/16 to 17% in 2023/24).

Operational & Capital Efficiency Challenges

Declining operating efficiency. Key metrics such as ROA, inventory turnover, and cost control have worsened.

Capital efficiency struggles. Only reinvestment margin has improved, while asset turnover and cash conversion have weakened.

Growth Strategy & Reinvestment

Growth comes primarily from acquisitions, with limited organic expansion.

High reinvestment rate (83 % of NOPAT).

USD 6.5 billion in acquisitions vs. USD 7.5 billion in CAPEX (2015 to 2024). This suggests acquisitions drove at least half of revenue growth.

No clear profitability improvement from acquisitions. Average PAT dropped from USD 0.5 billion (2015/16) to USD 0.3 billion (2023/24) despite major acquisitions.

Competitive Position & Peer Comparison

Westlake is smaller than many industry peers but has outpaced them in revenue growth. Overall Westlake ranks slightly above average compared to its competitors.

EBIT margin among the best, but returns on capital are only average.

Levered free cash flow margin has improved, signalling better cash conversion.

EPS remains volatile, mirroring the cyclical nature of the business.

Financial Position

Westlake remains financially sound and a strong cash generator.

USD 2.9 billion cash (14 % of total assets) as of Sep 2024.

Debt-equity ratio improved to 49 % (down from 98 % in 2016).

USD 17.1 billion in operating cash flow (2015 to 2024) vs. USD 9.3 billion PAT indicating strong cash conversion.

Capital allocation is disciplined. Cash flow has covered CAPEX and acquisitions, with excess capital returned to shareholders.

The main financial concern is the high reinvestment rate due to acquisitions.

Valuation & Investment Risk

Intrinsic value estimates:

Scenario 1 (No further acquisitions, 4 % organic growth) - USD 106 per share.

Scenario 2 (Continued acquisitions, 12 % initial growth declining to 4 %) – USD 161 per share.

Market price (Jan 2025) – USD 118 per share.

No margin of safety in Scenario 1, but a 36 % margin of safety in Scenario 2.

Key valuation concerns:

Efficiency risk. Scenario 2 assumes capital efficiency improvements, despite no historical evidence.

Acquisition risk. If efficiency declines as the company grows, acquisitions could destroy value rather than enhance it.

For Westlake to justify continued acquisitions, management must demonstrate improved efficiency.

For details of the analysis and valuation, refer to 20 Jan 2025 Seeking Alpha article “Westlake: Revenue Growth Meets Shrinking Return”

END

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

How to be an Authoritative Source, Share This Post

If the above article was useful, you can find more insights on how to make money in my e-book. The e-book is now available from Amazon, Kobo and Google Play.

PS: If you are in Malaysia or Singapore, the e-book can only be download from Kobo and Google Play.

Disclaimer & Disclosure
I am not an investment adviser, security analyst, or stockbroker. The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies. Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them.

The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such.

I may have equity interests in some of the companies featured.

This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.

Your link text