Amtech Systems, Inc. EBITDA dropped on 70.8% while Revenue increased on 7.2%
11/29/2018 • About Amtech Systems, Inc. (
$ASYS) • By InTwits
Amtech Systems, Inc. reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Amtech Systems, Inc. is a fast growth stock: FY2018 revenue growth was 7.2%, 5 year revenue CAGR was 38.4% at FY2018 ROIC 1.9%
- Amtech Systems, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -1.5%
- Amtech Systems, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is 1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Amtech Systems, Inc.'s Revenue increased on 7.2%. Revenue growth showed slowdown in FY18Q4 - it was -47.3% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.5 pp from -22.5% to -29.0% in 2018. EBITDA Margin followed a growing trend at 6.0 pp per annum in FY2014-FY2018.
Gross Margin showed almost no change in FY2018. Gross Margin grew at 2.7 pp per annum in the last 5 years. SG&A as a % of Revenue showed almost no change in FY2018. SG&A as a % of Revenue declined at -3.3 pp per annum in the last 5 years.
Net Income margin decreased on 2.5 pp from 5.6% to 3.0% in FY2018. Net Income margin grew at 6.5 pp per annum in FY2014-FY2018.
Investments (CAPEX, working capital and M&A)
Amtech Systems, Inc.'s CAPEX/Revenue was 0.85% in FY2018. CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 0.81%.
Return on investment
The company operates at low ROIC (1.9%) and ROE (5.8%). ROIC decreased on 9.7 pp from 11.5% to 1.9% in FY2018. ROE decreased on 5.8 pp from 11.6% to 5.8% in FY2018. ROIC grew at 7.5 pp per annum in the last 5 years. ROE stuck to a growing trend at 7.8 pp per annum in FY2014-FY2018.
Leverage (Debt)
Debt level is -13.3x Net Debt / EBITDA and 2.2x Debt / EBITDA. Debt decreased slightly on 1.9% while cash surged on 14.1%.
Amtech Systems, Inc. has no short term refinancing risk: cash is higher than short term debt (15,596.5%).
Valuation and dividends
The company's trades at EV/EBITDA 5.9x and P/E 13.6x.
Financial and operational results
FY ended 09/30/2018
Amtech Systems, Inc. ($ASYS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 56.5 | 104.9 | 120.3 | 164.5 | 176.4 | 7.2% |
| Gross Profit | 11.6 | 27.0 | 34.1 | 51.9 | 55.2 | 6.2% |
| SG&A | 18.4 | 33.0 | 34.0 | 35.1 | 37.5 | 6.8% |
| EBITDA | -10.7 | -10.2 | -4.9 | 12.9 | 3.8 | -70.8% |
| Net Income | -13.0 | -7.8 | -7.0 | 9.1 | 5.3 | -41.9% |
Balance Sheet
|
|---|
| Cash | 27.4 | 25.9 | 27.7 | 51.1 | 58.3 | 14.1% |
| Short Term Debt | 0.0 | 0.9 | 1.1 | 0.4 | 0.4 | 3.6% |
| Long Term Debt | 0.0 | 8.4 | 9.1 | 8.1 | 8.0 | -2.1% |
Cash flow
|
|---|
| Capex | 0.5 | 0.6 | 1.0 | 1.3 | 1.5 | 19.0% |
Ratios
|
|---|
| Revenue growth | 62.4% | 85.6% | 14.7% | 36.7% | 7.2% | |
| EBITDA growth | -38.4% | -4.8% | -51.5% | -361.8% | -70.8% | |
|
|---|
| Gross Margin | 20.6% | 25.8% | 28.3% | 31.6% | 31.3% | -0.3% |
| EBITDA Margin | -18.9% | -9.7% | -4.1% | 7.9% | 2.1% | -5.7% |
| SG&A, % of revenue | 32.6% | 31.5% | 28.2% | 21.4% | 21.3% | -0.1% |
| Net Income Margin | -23.1% | -7.4% | -5.8% | 5.6% | 3.0% | -2.5% |
| CAPEX, % of revenue | 0.8% | 0.6% | 0.8% | 0.8% | 0.8% | 0.1% |
|
|---|
| ROIC | -20.7% | -18.1% | -9.4% | 11.5% | 1.9% | -9.7% |
| ROE | -21.3% | -12.1% | -10.0% | 11.6% | 5.8% | -5.8% |
| Net Debt/EBITDA | | | | -3.3x | -13.3x | -10.0x |
Amtech Systems, Inc. ($ASYS) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 74 | 21 | 29 | 29 | | 152.7% | -35.9% | -39.8% | -47.3% |
| EBITDA | 8 | 2 | 4 | -9 | | 1,637.8% | | -23.0% | -199.5% |
| Net Income | 6 | 3 | 5 | -9 | | | | 51.2% | -222.4% |
Balance Sheet
|
|---|
| Cash | 53 | 50 | 49 | 58 | | 122.9% | 29.9% | 24.4% | 14.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -63.9% | -57.1% | -54.6% | 3.6% |
| Long Term Debt | 8 | 8 | 8 | 8 | | -9.7% | -11.5% | -17.5% | -2.1% |
Ratios
|
|---|
| Gross Margin | 27.6% | 40.6% | 35.4% | 29.5% | | -1.4% | 15.2% | 3.0% | -6.4% |
| EBITDA Margin | 11.2% | 9.1% | 12.3% | -29.9% | | 9.6% | 11.6% | 2.7% | -45.7% |
| Net Income Margin | 8.8% | 13.4% | 17.3% | -31.1% | | 8.9% | 17.7% | 10.4% | -44.4% |
Peers in Semiconductor Equipment
Below we provide Amtech Systems, Inc. benchmarking against other companies in Semiconductor Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Atomera Incorporated ($ATOM) | | | | | 123.6% |
| ACM Research, Inc. ($ACMR) | | | -12.3% | 33.4% | 104.5% |
| SCI Engineered Materials Inc ($SCIA) | | -13.0% | -32.1% | 24.4% | 67.0% |
| Aehr Test Systems ($AEHR) | | -49.1% | 44.7% | 30.3% | 56.4% |
| SolarEdge Technologies, Inc. ($SEDG) | | 144.0% | 50.7% | 23.9% | 54.4% |
| |
|---|
| Median (37 companies) | | -2.0% | 6.5% | 24.2% | 15.5% |
|---|
| Amtech Systems, Inc. ($ASYS) | | 85.6% | 14.7% | 36.7% | 7.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | 99.5% | 99.8% | 99.8% | 98.3% | 96.7% |
| KLA-Tencor Corporation ($KLAC) | 57.9% | 56.8% | 61.0% | 63.0% | 64.1% |
| Teradyne, Inc. ($TER) | 53.3% | 55.8% | 54.7% | 57.2% | 58.1% |
| Nova Measuring Instruments Ltd. ($NVMI) | 52.7% | 51.9% | 45.9% | 59.1% | 57.8% |
| Nanometrics Incorporated ($NANO) | 47.2% | 47.9% | 51.6% | 52.9% | 56.7% |
| |
|---|
| Median (38 companies) | 34.6% | 38.9% | 40.0% | 44.0% | 41.2% |
|---|
| Amtech Systems, Inc. ($ASYS) | 20.6% | 25.8% | 28.3% | 31.6% | 31.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 29.2% | 26.4% | 34.4% | 38.3% | 39.6% |
| DAQO New Energy Corp. ($DQ) | 32.9% | 31.6% | 43.3% | 49.1% | 36.1% |
| Xperi Corporation ($XPER) | 66.7% | 67.5% | 47.6% | 23.4% | 34.3% |
| Lam Research Corporation ($LRCX) | 21.1% | 20.3% | 23.2% | 27.6% | 32.0% |
| Cabot Microelectronics Corporation ($CCMP) | 21.6% | 22.6% | 23.4% | 27.2% | 31.5% |
| |
|---|
| Median (37 companies) | 7.0% | 10.3% | 12.1% | 16.2% | 16.6% |
|---|
| Amtech Systems, Inc. ($ASYS) | -18.9% | -9.7% | -4.1% | 7.9% | 2.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Rubicon Technology, Inc. ($RBCN) | 15.0% | 4.0% | 3.6% | 0.0% | 58.8% |
| DAQO New Energy Corp. ($DQ) | 42.2% | 44.7% | 29.5% | 19.8% | 47.4% |
| AXT Inc ($AXTI) | 2.4% | 5.4% | 3.4% | 21.6% | 39.6% |
| STR Holdings Inc ($STRI) | 7.9% | 8.1% | 1.6% | 9.0% | 36.6% |
| Photronics, Inc. ($PLAB) | 20.0% | 19.8% | 10.4% | 20.4% | 17.3% |
| |
|---|
| Median (37 companies) | 2.3% | 2.9% | 2.6% | 3.2% | 3.0% |
|---|
| Amtech Systems, Inc. ($ASYS) | 0.8% | 0.6% | 0.8% | 0.8% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 17.9% | 16.5% | 27.2% | 34.0% | 39.9% |
| Lam Research Corporation ($LRCX) | 10.7% | 10.9% | 11.8% | 18.7% | 33.9% |
| Versum Materials, Inc. ($VSM) | | 26.2% | 32.4% | 30.0% | 32.1% |
| Advanced Energy Industries, Inc. ($AEIS) | 8.8% | 30.2% | 41.2% | 45.7% | 31.3% |
| SolarEdge Technologies, Inc. ($SEDG) | -815.6% | 33.6% | 31.2% | 26.5% | 28.6% |
| |
|---|
| Median (39 companies) | 3.5% | 6.0% | 7.6% | 13.1% | 12.1% |
|---|
| Amtech Systems, Inc. ($ASYS) | -20.7% | -18.1% | -9.4% | 11.5% | 1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | -0.3x | -0.1x | 4.2x | 5.0x | 2.6x |
| Ultra Clean Holdings, Inc. ($UCTT) | -1.2x | 1.5x | 0.4x | -0.2x | 2.4x |
| Ichor Holdings ($ICHR) | 3.1x | 1.7x | -0.4x | 2.0x | 1.8x |
| Versum Materials, Inc. ($VSM) | -0.2x | -0.1x | 2.7x | 2.1x | 1.4x |
| DAQO New Energy Corp. ($DQ) | 4.6x | 4.3x | 2.3x | 0.9x | 1.2x |
| |
|---|
| Median (31 companies) | -1.2x | -1.3x | -1.3x | -0.7x | -1.0x |
|---|
| Amtech Systems, Inc. ($ASYS) | | | | -3.3x | -13.3x |
