AmpliTech Group (AMPG) AI Stock Analysis

• Market Cap: $37.75M
• Dividend Yield: N/A
• Average Volume (3M): 298.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -38.99%
• EPS Growth: -323.86%
• Country: US
• Employees: 47
• Sector: Technology
• Sector Strength: 69
• Industry: Communication Equipment
• EPS (TTM): -1.08
• Shares Outstanding: 19,658,960
• 10 Day Avg. Volume: 200,748
• 30 Day Avg. Volume: 298,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.38
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 108.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

AmpliTech Group's stock score is primarily driven by weak financial performance, characterized by declining revenues and persistent losses. Despite a strong equity position, rising debt levels and negative cash flows pose financial challenges. Technical indicators provide mixed signals with some short-term stability, but valuation remains unattractive due to negative P/E and lack of dividend yield.

Positive Factors

Financial Stability

Management highlights a solid balance sheet with no debt and strong working capital, enhancing visibility for the future.

Order Momentum

Recent order momentum is promising, including agreements with a US-based Fortune 1000 company and Fujitsu, indicating strong future growth.

Strategic Partnerships

AMPG signed Letters of Intent with leading Tier-1 Mobile Network Operators in North America for 5G ORAN products, securing over $100M in potential sales.

Negative Factors

Capital Needs

The company faced the necessity of a $1.4M capital raise despite previously stating no additional capital would be necessary.

Conversion Rates

Despite positive expectations, the pace of converting the pipeline into tangible results has been slower than anticipated.

Pipeline Challenges

Pipeline delays have resulted in lower estimates and a revised price target for AmpliTech Group.

AmpliTech Group Business Overview & Revenue Model

Company Description

AmpliTech Group, Inc. (AMPG) is a prominent player in the telecommunications sector, specializing in the design, development, and manufacture of state-of-the-art radio frequency (RF) components and low noise amplifiers. The company's products are integral to a range of applications including satellite communications, wireless networks, and military systems, offering enhanced signal clarity and efficiency.

How the Company Makes Money

AmpliTech Group derives its revenue primarily through the sale of its advanced RF components and amplifiers to a diverse clientele, including commercial enterprises, government agencies, and defense contractors. The company's revenue streams are bolstered by its commitment to innovation and customization, providing tailored solutions to meet specific client needs. Strategic partnerships and contracts with key industry players further enhance its market presence and financial performance.

AmpliTech Group Financial Statement Overview

Summary

AmpliTech Group faces significant financial challenges with declining revenue and substantial losses. While the balance sheet shows moderate leverage and a strong equity position, the negative cash flow and profitability metrics highlight operational inefficiencies and growth challenges. Improving profitability and cash flow should be priorities to stabilize the company's financial position.

Income Statement

AmpliTech Group's income statement reflects significant challenges. The company's TTM (Trailing-Twelve-Months) gross profit margin is about 44.85%, showing some efficiency in cost management. However, the net profit margin is deeply negative at -68.08%, indicating substantial losses. Revenue has decreased by 25.13% from the prior year, which is concerning for growth prospects. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a moderate level of stability. The debt-to-equity ratio is 0.29, which is manageable and indicates a conservative approach to leveraging. However, the return on equity is negative due to net losses, and the equity ratio is a healthy 73.97%, suggesting strong equity financing. The company needs to improve profitability to enhance financial health.

Cash Flow

Cash flow analysis reveals negative operating cash flow, reflecting cash burn from operations. Although free cash flow has improved slightly, it remains negative. The operating cash flow to net income ratio is 0.73, indicating cash flow issues. While free cash flow to net income is positive, it reflects the company's difficulty in converting revenue to positive cash flow.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
15.58M	19.39M	5.28M	3.46M	3.12M
	Gross Profit
7.28M	8.92M	1.29M	1.25M	1.57M
	EBIT
-2.58M	-687.77K	-5.11M	-915.95K	82.00K
	EBITDA
-2.05M	149.35K	-4.48M	-689.03K	211.43K
	Net Income Common Stockholders
-2.47M	-1.49M	-5.06M	-1.14M	-70.11K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.73M	13.54M	18.02M	199.54K	574.71K
	Total Assets
31.41M	36.68M	35.23M	2.81M	3.36M
	Total Debt
3.84M	4.67M	1.57M	2.24M	2.08M
	Net Debt
-2.88M	-8.62M	-16.45M	2.04M	1.50M
	Total Liabilities
4.73M	7.92M	6.19M	2.37M	2.27M
	Stockholders Equity
26.68M	28.76M	29.03M	440.28K	1.09M
Cash Flow		Free Cash Flow
-4.44M	-4.16M	-3.26M	-593.10K	-32.67K
	Operating Cash Flow
-3.47M	-3.43M	-2.20M	-521.49K	-20.02K
	Investing Cash Flow
-725.90K	-1.08M	-10.61M	-71.62K	-681.29K
	Financing Cash Flow
-2.37M	-224.22K	30.63M	217.93K	833.91K

AmpliTech Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMPG, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.62, and above the 200-day MA of 1.49, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 83.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMPG.

AmpliTech Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOSC	74 Outperform	$21.68M	9.34	11.46%	―	-9.57%	14.10%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
OCC	52 Neutral	$25.17M	―	-18.07%	―	-1.72%	-1591.92%
UTSI	49 Neutral	$25.29M	―	-9.04%	―	-30.95%	-8.17%
AMPG	46 Neutral	$37.75M	―	-35.04%	―	-38.99%	-323.86%
CLRO	46 Neutral	$13.79M	―	-27.21%	―	-39.13%	-1501.28%
CMTL	42 Neutral	$43.43M	―	-53.44%	―	-13.06%	-465.17%

AmpliTech Group Corporate Events

AmpliTech Group Strengthens Board with New Appointment

On January 21, 2025, AmpliTech Group announced the appointment of Shailesh ‘Sonny’ Modi to its Board of Directors, bringing nearly 40 years of financial and business experience. This move followed the resignation of Matthew Kappers on January 17, 2025, for personal reasons. Modi, who has a strong background in finance and corporate governance, will serve on several committees, and his appointment is expected to leverage his expertise to help the company achieve its corporate goals.