Amtech Systems (ASYS) AI Stock Analysis

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Amtech Systems

(NASDAQ:ASYS)

57Neutral

Amtech Systems exhibits a mixed financial outlook with positive cash flow recovery and balance sheet stability. However, technical indicators suggest bearish momentum, and the valuation appears high relative to earnings. Furthermore, despite strategic improvements highlighted in the earnings call, near-term challenges in revenue growth and key markets persist, culminating in a moderate overall stock score.

Positive Factors

Financial Performance

Amtech reported upside sales and earnings driven by the Thermal Processing Segment.

Liquidity

Unrestricted cash and cash equivalents increased to $13.2 million at the end of the December quarter from $11.1 million at the end of the September quarter.

Negative Factors

Backlog and Orders

The book-to-bill ratio was 0.74 with a sequential decline in backlog of 24.9%.

Industry Conditions

Weaker demand in the Semiconductor Fabrication Solutions Segment was due to continued softening of the mature node semiconductor industry.

Revenue Guidance

The Company expects second quarter revenues in the range of $15 - $16 million, below the original guidance of $21 - $23 million.

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

Market Cap

$51.15M

Dividend YieldN/A

Average Volume (3M)74.84K

Price to Earnings (P/E)43.0

Beta (1Y)0.48

Revenue Growth-13.71%

EPS GrowthN/A

CountryUS

Employees328

SectorTechnology

Sector Strength45

IndustrySemiconductors

Share Statistics

EPS (TTM)0.08

Shares Outstanding14,289,066

10 Day Avg. Volume86,756

30 Day Avg. Volume74,840

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.73

Price to Cash Flow (P/CF)6.40

P/FCF Ratio6.40

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 Upside79.10% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Amtech Systems Business Overview & Revenue Model

Company DescriptionAmtech Systems, Inc. (ASYS) is a global supplier of advanced thermal processing equipment, primarily serving the semiconductor industry. The company's core products include diffusion furnaces, related automation, and other tools used in the manufacturing of semiconductors. Amtech Systems operates within the semiconductor equipment sector, focusing on providing innovative solutions that enhance the efficiency and productivity of semiconductor manufacturing processes.

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, especially in cash flow metrics. Despite challenges in profitability and revenue growth, recent improvements in operating efficiency and balance sheet stability are positive. However, profitability remains weak, with a net profit margin of 1.2% in TTM.

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
43.15M	11.09M	13.13M	46.87M	32.84M	45.07M
	Total Assets
108.41M	118.95M	137.02M	133.53M	116.91M	102.10M
	Total Debt
121.00K	17.57M	22.20M	11.82M	13.72M	10.24M
	Net Debt
-43.02M	6.49M	9.07M	-35.05M	-19.12M	-34.83M
	Total Liabilities
36.41M	36.59M	48.66M	35.17M	31.28M	20.58M
	Stockholders Equity
72.00M	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 Price3.35

Price Trends

50DMA

4.80

Negative

100DMA

5.13

Negative

200DMA

5.54

Negative

Market Momentum

MACD

-0.40

Positive

RSI

20.18

Positive

STOCH

9.71

Positive

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 3.35 is below the 20-day moving average (MA) of 4.36, below the 50-day MA of 4.80, and below the 200-day MA of 5.54, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 20.18 is Positive, neither overbought nor oversold. The STOCH value of 9.71 is Positive, 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 (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEHR	69 Neutral	$240.85M	10.42	21.69%	―	-14.48%	46.79%
INTT	68 Neutral	$73.62M	25.15	2.95%	―	5.99%	-71.06%
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%
ASYS	57 Neutral	$51.15M	43.03	1.46%	―	-13.71%	―
SQNS	56 Neutral	$48.27M	―	231.78%	―	9.36%	―
VLN	55 Neutral	$252.67M	―	-23.83%	―	-31.25%	-79.47%
COHU	48 Neutral	$654.35M	―	-7.73%	―	-36.86%	-351.11%

* Technology Sector Average

Performance Comparison

ASYS

Amtech Systems

3.35

-1.30

-27.96%

AEHR

Aehr Test Systems

7.96

-2.63

-24.83%

COHU

Cohu

14.30

-14.77

-50.81%

INTT

inTEST

5.95

-5.41

-47.62%

SQNS

Sequans Communications S A

1.87

0.61

48.41%

VLN

Valens

2.29

-0.05

-2.14%

Amtech Systems Earnings Call Summary

Earnings Call Date: Feb 5, 2025 | % Change Since: -35.95% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a company in transition, with significant progress in cost savings and profitability improvements, especially in AI and advanced packaging. However, challenges remain with muted revenue growth and softness in key markets such as automotive, casting a shadow over near-term prospects.

Highlights

Exceeding Guidance in Q1 2025

Amtech's revenue of $24.4 million and $1.9 million in adjusted EBITDA exceeded guidance, showing operational excellence and cost optimization.

Significant Cost Savings Achieved

Restructuring initiatives have yielded over $8 million in annualized cost savings, expected to reach $9 million by the end of Q2.

Improved Profitability

GAAP net income for Q1 2025 was $0.3 million, a significant improvement from the GAAP net loss of $9.4 million in Q1 2024.

Strength in AI and Advanced Packaging

Demand for reflow equipment in AI infrastructure and advanced packaging has strengthened, providing growth opportunities.

Cash Position Improvement

Unrestricted cash and cash equivalents increased to $13.2 million from $11.1 million in the previous quarter due to better receivables and inventory management.

Lowlights

Muted Revenue Growth

Revenue remained muted on a year-over-year basis due to continued softness in the markets served, with a decrease of 2% from a year ago.

Decreased Gross Margin

GAAP gross margin decreased by $0.4 million sequentially compared to the previous quarter due to a less favorable product mix.

Softness in Automotive Market

The automotive segment, particularly on the equipment side, continues to experience softness with no sharp recovery in sight.

Challenging Near-Term Outlook

For Q2 2025, expected revenues are in the range of $21 million to $23 million with adjusted EBITDA nominally positive, indicating a challenging outlook.

Company Guidance

During the Amtech Systems Fiscal First Quarter 2025 Earnings Conference Call, the company reported that their results surpassed expectations with $24.4 million in revenue and $1.9 million in adjusted EBITDA, despite a 2% year-over-year revenue decline. The restructuring efforts have led to over $8 million in annualized cost savings, which are expected to increase to approximately $9 million by the end of the second fiscal quarter. The company's strategic shift to a semi-fabless model has enhanced operational efficiency, and pricing adjustments have been made to counter inflationary pressures. Looking ahead, Amtech anticipates second-quarter revenues between $21 million and $23 million, with nominally positive adjusted EBITDA, driven by investments in AI infrastructure and supply chain diversification, despite near-term challenges in the automotive market. The advanced packaging segment is experiencing growth, and the company is focused on expanding its consumables, parts, and services offerings to drive higher margins and more stable revenue growth.

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.