Amtech Systems (ASYS) AI Stock Analysis

• Market Cap: $125.10M
• Dividend Yield: N/A
• Average Volume (3M): 233.76K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 0.48
• Revenue Growth: -20.20%
• EPS Growth: -58.57%
• Country: US
• Employees: 328
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 14,313,963
• 10 Day Avg. Volume: 531,391
• 30 Day Avg. Volume: 233,759
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: -2.46
• 1Y Price Target: $9.00
• Price Target Upside: 2.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $9.00 ▲(2.97% Upside)

Amtech Systems' overall stock score is primarily influenced by its strong technical momentum, despite financial challenges and valuation concerns. The earnings call provided some positive insights into growth areas and cost management, but the negative financial performance and valuation metrics weigh heavily on the score.

Positive Factors

AI Infrastructure Growth

The significant growth in AI infrastructure revenue indicates a strong market position in a rapidly expanding sector, suggesting potential for sustained future growth as AI applications continue to proliferate.

Cost Reduction Initiatives

Effective cost reduction initiatives enhance margin sustainability and improve operational efficiency, which can lead to better financial health and competitiveness in the long term.

Improved Gross Margin

An improved gross margin indicates better cost management and pricing power, which are critical for maintaining profitability and competitive advantage in the semiconductor industry.

Negative Factors

Year-over-Year Revenue Decline

A significant year-over-year revenue decline highlights challenges in maintaining sales momentum, which could impact long-term growth and market position if not addressed.

Weak Mature Node Demand

Weak demand in mature node semiconductor markets suggests potential revenue headwinds, as these segments may not recover quickly, affecting overall sales and market share.

Reduced R&D Expenses

Reduced R&D spending could hinder innovation and product development, potentially impacting the company's ability to compete and adapt to industry changes over time.

Amtech Systems Business Overview & Revenue Model

Company Description

Amtech 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 Money

Amtech Systems generates revenue through the sale of its semiconductor and solar manufacturing equipment, which includes both new and refurbished systems. The company also earns income from service agreements, spare parts sales, and maintenance contracts associated with its equipment. Key revenue streams include direct sales to semiconductor manufacturers and solar cell producers, as well as partnerships with other technology firms that enhance its market reach and product offerings. Additionally, Amtech benefits from the growing demand for advanced semiconductor devices and renewable energy technologies, which drive both equipment sales and service-related revenues.

Amtech Systems Financial Statement Overview

Summary

Amtech Systems is facing financial challenges with declining revenues and negative profit margins. The balance sheet shows stability with a healthy equity ratio, but increased leverage and negative return on equity pose risks. Cash flow is mixed, with some ability to generate cash despite negative net income.

Income Statement

Amtech Systems has experienced significant volatility in revenue with a notable decline from $113.3M in 2023 to $90.8M TTM, indicating a contraction in sales. Gross profit margin decreased from 31.4% to 31.5% TTM, while the net profit margin turned negative at -34.8% TTM. EBIT and EBITDA margins are also negative, reflecting operational challenges and potential profitability issues.

Balance Sheet

The company maintains a relatively healthy equity base with an equity ratio of 61.2% TTM, down from previous levels, highlighting stability. However, the debt-to-equity ratio increased to 0.32 TTM, reflecting a rise in leverage which could pose risks amid declining revenues. Return on equity is negative, pointing to inefficiencies in generating profits from shareholder equity.

Cash Flow

Amtech Systems shows a mixed cash flow picture with free cash flow of $4.56M TTM, but free cash flow growth is negative compared to the previous period. The operating cash flow to net income ratio is positive at 0.24, indicating some ability to generate cash despite negative net income, which provides a cushion against financial stress.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.63M	101.21M	113.31M	106.30M	85.20M	65.46M
Gross Profit	27.97M	36.23M	35.55M	39.51M	34.53M	24.44M
EBITDA	-27.21M	-3.92M	-9.65M	6.55M	5.21M	810.00K
Net Income	-31.93M	-8.49M	-12.58M	17.37M	1.51M	-3.91M
Balance Sheet
Total Assets	89.46M	118.95M	137.02M	133.53M	116.91M	102.10M
Cash, Cash Equivalents and Short-Term Investments	15.56M	11.09M	13.13M	46.87M	32.84M	45.07M
Total Debt	18.96M	17.57M	22.20M	11.82M	13.72M	10.24M
Total Liabilities	37.75M	36.59M	48.66M	35.17M	31.28M	20.58M
Stockholders Equity	51.72M	82.36M	88.36M	98.37M	85.63M	81.52M
Cash Flow
Free Cash Flow	6.22M	4.96M	-10.60M	4.07M	-8.97M	-4.34M
Operating Cash Flow	6.49M	9.84M	-7.70M	5.20M	-5.96M	-1.66M
Investing Cash Flow	-260.00K	-2.18M	-37.83M	18.77M	-8.09M	-12.62M
Financing Cash Flow	-3.91M	-10.63M	11.74M	-8.27M	1.17M	-1.50M

Amtech Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASYS, the sentiment is Positive. The current price of 8.74 is above the 20-day moving average (MA) of 7.09, above the 50-day MA of 5.70, and above the 200-day MA of 4.94, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 72.03 is Negative, neither overbought nor oversold. The STOCH value of 86.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASYS.

Amtech Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTT	68 Neutral	95.20M	-110.74	2.90%	―	-0.81%	-117.62%
ASYS	60 Neutral	$125.10M	40.38	-47.86%	―	-20.20%	-58.57%
AEHR	58 Neutral	849.02M	-215.93	-3.18%	―	-10.95%	-111.40%
COHU	56 Neutral	1.02B	-11.76	-10.49%	―	-21.27%	-207.30%
SQNS	49 Neutral	24.22M	―	128.13%	―	32.23%	0.00%
VLN	49 Neutral	191.35M	-5.76	-28.47%	―	8.70%	-13.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%