Amtech Systems (ASYS) AI Stock Analysis

433 Followers

Top Page

Amtech Systems

(NASDAQ:ASYS)

51Neutral

Amtech Systems demonstrates a mixed financial performance with signs of recovery in cash flow and balance sheet stability. However, challenges remain with profitability and revenue growth. The technical indicators suggest a bearish trend, but potential for a rebound exists. High valuation metrics and a lack of dividends decrease attractiveness, despite positive long-term outlooks from strategic initiatives and a strong cash position. Earnings call highlights both current challenges and future potential, resulting in a moderate overall score.

Positive Factors

Cash Reserves

Unrestricted cash and cash equivalents at the end of the December quarter were $13.2 million dollars, compared to $11.1 million dollars at the end of the September quarter.

Restructuring

Restructuring moves are expected to save $13 million on an annual basis and result in an EBITDA breakeven annual sales level of $60 million.

Sales Guidance

Amtech reported sales within its previously revised range and guided to somewhat higher sales in the June quarter.

Negative Factors

Backlog Decline

The backlog in the year-ago period was $44.3 million, indicating a significant decrease to the current backlog of $19.1 million.

Operating Loss

The GAAP operating loss for the Thermal Processing Solutions segment was $8.40 million in the March quarter versus an operating income of $2.87 million in the prior quarter.

Revenue Forecast

The Company now expects second quarter revenues in the range of $15 - $16 million, and nominally negative adjusted EBITDA, compared to the original second quarter guidance of $21 - $23 million revenue and nominally positive adjusted EBITDA.

Amtech Systems (ASYS) vs. S&P 500 (SPY)

Market Cap

$48.01M

Dividend YieldN/A

Average Volume (3M)63.03K

Price to Earnings (P/E)40.4

Beta (1Y)0.47

Revenue Growth-16.52%

EPS Growth-46.13%

CountryUS

Employees328

SectorTechnology

Sector Strength69

IndustrySemiconductors

Share Statistics

EPS (TTM)-2.23

Shares Outstanding14,289,066

10 Day Avg. Volume53,830

30 Day Avg. Volume63,028

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.62

Price to Sales (P/S)0.00

P/FCF Ratio14.81

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.00

Price Target Upside71.92% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Amtech Systems Business Overview & Revenue Model

Company DescriptionAmtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates in Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, diffusion furnaces, and customer high-temp belt furnaces for use by semiconductor manufacturers, as well as in electronics, automotive and other industries; and wafer polishing equipment and related services. Its products include horizontal diffusion furnaces; and belt furnaces. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. This segment also offers substrate process chemicals for use in various manufacturing processes, including semiconductors, silicon and compound semiconductor wafers, and optics. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. The company was formerly known as Quartz Engineering & Materials, Inc. and changed its name to Amtech Systems, Inc. in 1987. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.

How the Company Makes MoneyAmtech Systems generates revenue through the sale of its advanced thermal processing equipment and related services to semiconductor manufacturers. The company primarily makes money by selling diffusion furnaces and automation tools that are integral to the semiconductor production process. Additionally, Amtech may earn revenue from providing maintenance services, spare parts, and equipment upgrades. Significant partnerships with semiconductor manufacturers and continuous innovation in product offerings contribute to the company's earnings, enabling them to cater to the evolving needs of the semiconductor industry.

Amtech Systems Financial Statement Overview

Summary

Amtech Systems shows signs of recovery, particularly in cash flow metrics. Profitability and revenue growth have faced challenges, but recent improvements in operating efficiency and balance sheet stability reflect a positive trajectory. Continued focus on enhancing profit margins and sustaining cash flow growth will be crucial for stronger financial health.

Income Statement

Neutral

The company experienced fluctuations in revenue, showing a decline from the previous year but a recent improvement in the TTM period. Gross profit margin is reasonable at approximately 37.1% for TTM. However, net profit margin is relatively low at 1.2% in TTM, indicating weak profitability. EBIT and EBITDA margins have improved compared to the previous annual report, but still suggest challenges in operational efficiency.

Balance Sheet

Positive

The balance sheet shows stability with a debt-to-equity ratio of approximately 0.21, indicating low leverage. The equity ratio is strong at around 70% for TTM, suggesting good asset backing by equity. Return on equity has improved in the TTM period to 1.44%, but remains low, indicating modest returns on shareholders' equity.

Cash Flow

Positive

Operating cash flow is positive in the TTM period, showing recovery from previous negative cash flows. Free cash flow is also positive, indicating improved liquidity. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings. However, free cash flow growth has been volatile, presenting potential risks in cash flow stability.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
100.68M	101.21M	113.31M	106.30M	85.20M	65.46M
	Gross Profit
37.38M	36.23M	35.55M	39.51M	34.53M	24.44M
	EBIT
459.00K	-6.73M	-14.97M	4.82M	3.73M	2.74M
	EBITDA
3.73M	-3.92M	-9.65M	6.55M	5.21M	810.00K
	Net Income Common Stockholders
1.18M	-8.49M	-12.58M	17.37M	1.51M	-3.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.21M	11.09M	13.13M	46.87M	32.84M	45.07M
	Total Assets
117.78M	118.95M	137.02M	133.53M	116.91M	102.10M
	Total Debt
17.03M	17.57M	22.20M	11.82M	13.72M	10.24M
	Net Debt
3.81M	6.49M	9.07M	-35.05M	-19.12M	-34.83M
	Total Liabilities
35.33M	36.59M	48.66M	35.17M	31.28M	20.58M
	Stockholders Equity
82.44M	82.36M	88.36M	98.37M	85.63M	81.52M
Cash Flow		Free Cash Flow
3.47M	4.96M	-10.60M	4.07M	-8.97M	-4.34M
	Operating Cash Flow
7.74M	9.84M	-7.70M	5.20M	-5.96M	-1.66M
	Investing Cash Flow
-1.56M	-2.18M	-37.83M	18.77M	-8.09M	-12.62M
	Financing Cash Flow
-9.98M	-10.63M	11.74M	-8.27M	1.17M	-1.50M

Amtech Systems Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.49

Price Trends

50DMA

4.24

Negative

100DMA

4.78

Negative

200DMA

5.32

Negative

Market Momentum

MACD

-0.22

Negative

RSI

40.40

Neutral

STOCH

34.26

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASYS, the sentiment is Negative. The current price of 3.49 is below the 20-day moving average (MA) of 3.49, below the 50-day MA of 4.24, and below the 200-day MA of 5.32, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASYS.

Amtech Systems Risk Analysis

Amtech Systems disclosed 31 risk factors in its most recent earnings report. Amtech Systems reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Amtech Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTT	70 Outperform	$74.83M	25.19	-0.10%	―	5.19%	-101.31%
AEHR	67 Neutral	$271.22M	11.74	21.69%	―	-14.48%	46.79%
COHU	62 Neutral	$819.38M	―	-9.87%	―	-30.75%	-3668.44%
Sector *	60 Neutral	$11.39B	10.52	-6.21%	2.95%	7.68%	-11.12%
VLN	56 Neutral	$261.13M	―	-24.31%	―	-12.13%	-39.21%
SQNS	53 Neutral	$40.37M	―	378.21%	―	39.81%	―
ASYS	51 Neutral	$48.01M	40.38	-47.90%	―	-16.52%	-46.13%

* Technology Sector Average

Performance Comparison

ASYS

Amtech Systems

3.49

-1.85

-34.64%

AEHR

Aehr Test Systems

9.25

-2.37

-20.40%

COHU

Cohu

18.15

-11.29

-38.35%

INTT

inTEST

6.09

-4.07

-40.06%

SQNS

Sequans Communications S A

1.58

0.39

32.77%

VLN

Valens

2.43

-0.02

-0.82%

Amtech Systems Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q2-2025)

% Change Since: 3.87%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The call conveyed a mixed outlook with significant challenges in the mature node semiconductor market, impacting revenue and profitability, but also highlighted strong demand in AI-related segments and successful cost optimization efforts. The company's solid cash position and strategic initiatives provide a positive long-term perspective despite current headwinds.

Q2-2025 Updates

Positive Updates

AI Packaging Equipment Bookings Surge

Orders for advanced packaging equipment, particularly for AI applications, were very strong, with second-quarter bookings exceeding total bookings for all of fiscal 2024.

Cost Structure Optimization

The company executed site consolidations and workforce adjustments, expecting $1 million in incremental EBITDA savings per quarter from Q4 2025, with total annualized savings anticipated at $11 million.

Strong Cash Position

Amtech ended the quarter with $13.4 million in cash and no outstanding debt, providing flexibility for strategic investments.

Growth in Semiconductor Fabrication Solutions

Stabilization in the Semiconductor Fabrication Solutions segment was noted, with a book-to-bill ratio slightly above 1, indicating balanced incoming orders and revenue.

Negative Updates

Revenue Shortfall and Profitability Impact

Revenue for the second fiscal quarter came in below guidance, driven by a $4.9 million shipment delay in the Thermal Processing Solutions segment and overall softening in the mature node semiconductor market, resulting in an adjusted EBITDA loss of $1.4 million.

Significant Impairment and Write-offs

Amtech recorded a $22.9 million impairment charge and a $6 million inventory write-off due to prolonged softness in the mature node and EV-related semiconductor market.

Decreased Revenue and Net Loss

Net revenue decreased by 36% from fiscal Q1 and 39% from the second quarter of fiscal 2024. GAAP net loss for the second quarter was $31.8 million, compared to net income in previous periods.

Weak Orders for Reflow Equipment in the U.S.

Orders for reflow equipment in the U.S. were weak due to high tariffs, although this was offset by strength in Asia.

Company Guidance

During Amtech Systems' fiscal second quarter 2025 conference call, the company highlighted several key metrics and guidance for the future. The company reported a net revenue of $15.6 million, representing a 36% decrease from fiscal Q1 and a 39% decrease from the same quarter in fiscal 2024. This decline was attributed to a $4.9 million shipment delay and weakened demand in the mature node semiconductor market. The adjusted EBITDA for the quarter was a loss of $1.4 million, with a GAAP net loss of $31.8 million or $2.23 per share. Notably, the company recorded an impairment charge of $22.9 million and a $6 million inventory write-off. Despite these challenges, Amtech saw strong demand for its advanced packaging equipment, driven by AI applications, with Q2 bookings for this product line exceeding total bookings for fiscal 2024. The company anticipates revenues of approximately $16.9 million for Q3 2025 and expects adjusted EBITDA to be nominally neutral. Cost-optimization efforts are projected to yield additional savings of $1 million per quarter starting in Q4 2025, with a target of achieving a breakeven adjusted EBITDA at around $16 million in revenue. Amtech ended the quarter with $13.4 million in cash and no outstanding debt, positioning it to continue strategic investments.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.