Amtech Systems, Inc. reports 85.1% EBITDA decline in 2020 and 23.0% Revenue decline
11/19/2020 • About Amtech Systems, Inc. (
$ASYS) • By InTwits
Amtech Systems, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Amtech Systems, Inc. is a company in decline: FY2020 revenue growth was -23.0%, 5 years revenue CAGR was -9.0%
- EBITDA Margin is quite volatile: 1.5% in FY2020, 7.8% in FY2019, 2.1% in FY2018, 7.9% in FY2017, -4.1% in FY2016
- Amtech Systems, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 0.8%.
- CAPEX is quite volatile: $3m in FY2020, $1m in FY2019, $1m in FY2018, $1m in FY2017, $1m in FY2016
- The company has unprofitable business model: ROIC is -0.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 23.0%. Revenue decline showed acceleration in FY20Q4 - it was 25.2% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.3 pp from 7.8% to 1.5% in FY2020.
Gross Margin decreased slightly on 1.9 pp from 39.2% to 37.3% in FY2020. Gross Margin grew at 2.6 pp per annum in the last 5 years. SG&A as a % of Revenue increased on 4.2 pp from 28.5% to 32.7% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue bottomed in FY2018 at 21.3% and was growing since that time.
Net Income margin dropped on 17.9 pp from -6.1% to -24.0% in FY2020. During the last 5 years Net Income margin topped in FY2017 at 5.6% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Amtech Systems, Inc.'s CAPEX/Revenue was 4.1% in FY2020. CAPEX/Revenue increased on 3.3 pp from 0.76% in FY2017 to 4.1% in FY2020. It's average level of CAPEX/Revenue for the last three years was 1.9%. Amtech Systems, Inc. has spent a lot to CAPEX (273% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-0.3%) and ROE (-18.6%). ROIC decreased on 5.2 pp from 4.9% to -0.30% in FY2020. ROE dropped on 12.9 pp from -5.7% to -18.6% in FY2020. During the last 5 years ROE topped in FY2017 at 11.6% and was declining since that time.
Leverage (Debt)
Debt level is -35.4x Net Debt / EBITDA and 10.6x Debt / EBITDA. Debt surged on 86.8% while cash dropped on 14.9%.
Amtech Systems, Inc. has no short term refinancing risk: cash is higher than short term debt (8,942.5%).
Management team
Michael Whang is a the company's CEO. Michael Whang has spent 1 year with the company. Lisa D Gibbs is a Amtech Systems, Inc.'s CFO. Lisa D Gibbs has spent 2 years at the company.
Financial and operational results
FY ended 09/30/2020
Amtech Systems, Inc. ($ASYS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 120.3 | 164.5 | 176.4 | 85.0 | 65.5 | -23.0% |
| Gross Profit | 34.1 | 51.9 | 55.2 | 33.4 | 24.4 | -26.7% |
| SG&A | 34.0 | 35.1 | 37.5 | 24.3 | 21.4 | -11.8% |
| EBITDA | -4.9 | 12.9 | 3.8 | 6.6 | 1.0 | -85.1% |
| Net Income | -7.0 | 9.1 | 5.3 | -5.2 | -15.7 | |
Balance Sheet
|
|---|
| Cash | 27.7 | 51.1 | 58.3 | 53.0 | 45.1 | -14.9% |
| Short Term Debt | 1.1 | 0.4 | 0.4 | 0.4 | 0.5 | 35.8% |
| Long Term Debt | 9.1 | 8.1 | 8.0 | 5.2 | 9.9 | 90.5% |
Cash flow
|
|---|
| Capex | 1.0 | 1.3 | 1.5 | 0.7 | 2.7 | 274.8% |
Ratios
|
|---|
| Revenue growth | 14.7% | 36.7% | 7.2% | -51.8% | -23.0% | |
| EBITDA growth | -51.5% | -361.8% | -70.8% | 75.1% | -85.1% | |
|
|---|
| Gross Margin | 28.3% | 31.6% | 31.3% | 39.2% | 37.3% | -1.9% |
| EBITDA Margin | -4.1% | 7.9% | 2.1% | 7.8% | 1.5% | -6.3% |
| SG&A, % of revenue | 28.2% | 21.4% | 21.3% | 28.5% | 32.7% | 4.2% |
| Net Income Margin | -5.8% | 5.6% | 3.0% | -6.1% | -24.0% | -17.9% |
| CAPEX, % of revenue | 0.8% | 0.8% | 0.8% | 0.8% | 4.1% | 3.2% |
|
|---|
| ROIC | -9.4% | 11.5% | 1.9% | 4.9% | -0.3% | -5.2% |
| ROE | -10.0% | 11.6% | 5.8% | -5.7% | -18.6% | -12.9% |
| Net Debt/EBITDA | | -3.3x | -13.3x | -7.2x | -35.4x | -28.2x |
Amtech Systems, Inc. ($ASYS) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 21 | 14 | 15 | 15 | | -10.9% | -29.9% | -27.5% | -25.2% |
| EBITDA | 2 | -1 | 0 | -1 | | 91.4% | -138.1% | -80.4% | -134.9% |
| Net Income | -2 | -12 | -0 | -2 | | - | - | -103.5% | -353.8% |
Balance Sheet
|
|---|
| Cash | 53 | 49 | 46 | 45 | | -5.8% | 2.8% | -5.4% | -14.9% |
| Short Term Debt | 0 | 0 | 1 | 1 | | 9.8% | 8.4% | 36.3% | 35.8% |
| Long Term Debt | 5 | 5 | 10 | 10 | | -35.0% | -5.8% | 89.4% | 90.5% |
Ratios
|
|---|
| Gross Margin | 39.5% | 37.1% | 39.1% | 32.9% | | 0.7% | -1.4% | 1.7% | -9.6% |
| EBITDA Margin | 10.2% | -4.5% | 2.2% | -4.8% | | 5.5% | -12.7% | -6.1% | -15.0% |
| Net Income Margin | -9.3% | -80.9% | -0.5% | -13.4% | | 0.9% | -53.6% | -10.2% | -17.4% |
Peers in Semiconductor Equipment
Below you can find Amtech Systems, Inc. benchmarking vs. other companies in Semiconductor Equipment industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | - | 44.0% | 8.7% | -31.0% | 218.5% |
| DAQO New Energy Corp. ($DQ) | - | 41.1% | -6.7% | 16.0% | 93.0% |
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 15.5% | -0.2% | 16.9% |
|---|
| Amtech Systems, Inc. ($ASYS) | - | 36.7% | 7.2% | -51.8% | -23.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
| Teradyne, Inc. ($TER) | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% |
| Nova Measuring Instruments Ltd. ($NVMI) | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% |
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 40.0% | 44.0% | 41.2% | 40.5% | 42.7% |
|---|
| Amtech Systems, Inc. ($ASYS) | 28.3% | 31.6% | 31.3% | 39.2% | 37.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% |
| DAQO New Energy Corp. ($DQ) | 43.3% | 49.1% | 36.1% | 27.1% | 38.0% |
| Teradyne, Inc. ($TER) | 3.4% | 29.6% | 27.9% | 30.3% | 33.8% |
| Cabot Microelectronics Corporation ($CCMP) | 23.4% | 27.2% | 31.5% | 20.1% | 31.6% |
| Entegris, Inc. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.2% | 16.6% | 12.9% | 15.9% |
|---|
| Amtech Systems, Inc. ($ASYS) | -4.1% | 7.9% | 2.1% | 7.8% | 1.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| DAQO New Energy Corp. ($DQ) | 29.5% | 19.8% | 47.4% | 79.7% | 17.5% |
| Photronics, Inc. ($PLAB) | 10.4% | 20.4% | 17.3% | 32.4% | 11.6% |
| Cabot Microelectronics Corporation ($CCMP) | 4.1% | 4.2% | 3.6% | 5.4% | 11.3% |
| Amkor Technology, Inc. ($AMKR) | 16.5% | 13.1% | 12.7% | 11.7% | 10.9% |
| ACM Research, Inc. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 3.2% | 3.0% | 3.4% | 3.3% |
|---|
| Amtech Systems, Inc. ($ASYS) | 0.8% | 0.8% | 0.8% | 0.8% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Teradyne, Inc. ($TER) | -2.9% | 23.8% | 22.6% | 29.2% | 40.3% |
| DAQO New Energy Corp. ($DQ) | 12.7% | 23.2% | 12.2% | 5.6% | 18.5% |
| Entegris, Inc. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.6% | 13.1% | 12.1% | 5.6% | 10.5% |
|---|
| Amtech Systems, Inc. ($ASYS) | -9.4% | 11.5% | 1.9% | 4.9% | -0.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
| Xperi Corporation ($XPER) | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x |
| Cabot Microelectronics Corporation ($CCMP) | -1.3x | -1.8x | -1.9x | 3.6x | 2.0x |
| Entegris, Inc. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.3x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
| Amtech Systems, Inc. ($ASYS) | - | -3.3x | -13.3x | -7.2x | -35.4x |
