Amtech Systems (ASYS) AI Stock Analysis

• Market Cap: $59.40M
• Dividend Yield: N/A
• Average Volume (3M): 58.80K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 0.39
• Revenue Growth: -16.52%
• EPS Growth: -46.13%
• Country: US
• Employees: 328
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): -2.23
• Shares Outstanding: 14,313,963
• 10 Day Avg. Volume: 27,762
• 30 Day Avg. Volume: 58,805
• PEG Ratio: <0.01
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.27
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: -1.80
• 1Y Price Target: $6.00
• Price Target Upside: 44.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $4.50 ▲(8.43%Upside)

Amtech Systems is currently experiencing financial and profitability challenges, primarily due to declining revenues and increased leverage. However, technical indicators show moderate bullish momentum, and strategic initiatives highlighted in the earnings call suggest potential for long-term improvement. The negative valuation metrics remain a concern, emphasizing the need for operational and financial recovery to enhance investor attractiveness.

Positive Factors

Cash Position

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.

Cost Savings

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 Forecast

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 Guidance

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 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 primarily through the sale of its thermal processing equipment and related technologies to semiconductor manufacturers. The company's key revenue streams include the direct sale of its diffusion furnaces and polishing systems, as well as the provision of customer support services and spare parts. Amtech often establishes long-term partnerships with its clients, ensuring a steady demand for its equipment and services. Additionally, the company's focus on innovation and customization enables it to cater to specific customer needs, enhancing its market competitiveness and revenue potential.

Amtech Systems Financial Statement Overview

Summary

Amtech Systems faces challenges with declining revenues and profitability pressures, as indicated by negative profit margins and decreased cash flow growth. While the balance sheet remains relatively stable, increased leverage and a negative return on equity highlight potential risks. The company must address operational inefficiencies and stabilize revenues to improve financial health.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
90.83M	101.21M	113.31M	106.30M	85.20M	65.46M
	Gross Profit
28.60M	36.23M	35.55M	39.51M	34.53M	24.44M
	EBIT
-30.40M	-6.73M	-14.97M	4.82M	3.73M	2.74M
	EBITDA
-27.85M	-3.92M	-9.65M	6.55M	5.21M	810.00K
	Net Income Common Stockholders
-31.60M	-8.49M	-12.58M	17.37M	1.51M	-3.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.43M	11.09M	13.13M	46.87M	32.84M	45.07M
	Total Assets
83.41M	118.95M	137.02M	133.53M	116.91M	102.10M
	Total Debt
16.52M	17.57M	22.20M	11.82M	13.72M	10.24M
	Net Debt
3.10M	6.49M	9.07M	-35.05M	-19.12M	-34.83M
	Total Liabilities
32.37M	36.59M	48.66M	35.17M	31.28M	20.58M
	Stockholders Equity
51.03M	82.36M	88.36M	98.37M	85.63M	81.52M
Cash Flow		Free Cash Flow
4.56M	4.96M	-10.60M	4.07M	-8.97M	-4.34M
	Operating Cash Flow
7.61M	9.84M	-7.70M	5.20M	-5.96M	-1.66M
	Investing Cash Flow
-3.05M	-2.18M	-37.83M	18.77M	-8.09M	-12.62M
	Financing Cash Flow
-4.14M	-10.63M	11.74M	-8.27M	1.17M	-1.50M

Amtech Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASYS, the sentiment is Neutral. The current price of 4.15 is above the 20-day moving average (MA) of 4.05, above the 50-day MA of 3.77, and below the 200-day MA of 5.07, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 56.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASYS.

Amtech Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEHR	76 Outperform	$342.67M	14.83	21.69%	―	-14.48%	46.79%
INTT	67 Neutral	$87.32M	25.19	-0.10%	―	5.19%	-101.31%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
COHU	60 Neutral	$846.81M	―	-9.87%	―	-30.75%	-3668.44%
ASYS	55 Neutral	$59.40M	40.38	-47.90%	―	-16.52%	-46.13%
SQNS	53 Neutral	$48.49M	―	378.21%	―	39.81%	―
VLN	53 Neutral	$241.04M	―	-24.31%	―	-12.13%	-39.21%