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"We rate AMTECH SYSTEMS INC (ASYS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- AMTECH SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. 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 ($0.14 versus -$2.11).
- The revenue fell significantly faster than the industry average of 18.6%. Since the same quarter one year prior, revenues fell by 11.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for AMTECH SYSTEMS INC is rather low; currently it is at 24.16%. 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 -57.20% significantly underperformed when compared to the industry average.
- Net operating cash flow has significantly decreased to -$4.87 million or 2034.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: ASYS Ratings Report