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NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins.
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Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 79.4% when compared to the same quarter one year ago, falling from -$2.09 million to -$3.75 million.
- The gross profit margin for AMTECH SYSTEMS INC is currently lower than what is desirable, coming in at 27.37%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -29.49% is significantly below that of the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, AMTECH SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- AMTECH SYSTEMS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMTECH SYSTEMS INC continued to lose money by earning -$2.11 versus -$2.43 in the prior year. This year, the market expects an improvement in earnings (-$0.77 versus -$2.11).
- Compared to its closing price of one year ago, ASYS's share price has jumped by 120.40%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in ASYS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
Amtech Systems, Inc. designs, assembles, sells, and installs capital equipment and related consumables used in the manufacture of wafers, primarily for the solar and semiconductor industries worldwide. Amtech Systems has a market cap of $85 million and is part of the technology sector and electronics industry. Shares are up 17.5% year to date as of the close of trading on Monday.
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