Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.
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Highlights from the ratings report include:
- ASYS's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 57.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ASYS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ASYS has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for AMTECH SYSTEMS INC is currently lower than what is desirable, coming in at 34.92%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ASYS's net profit margin of -5.37% significantly underperformed when compared to the industry average.
- Net operating cash flow has significantly decreased to -$6.92 million or 52.08% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
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 $129.5 million and is part of the technology sector and electronics industry. Shares are up 94.1% year to date as of the close of trading on Monday.
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