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1. Company Snapshot

1.a. Company Description

Amtech Systems, Inc.manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide.The company operates in Semiconductor and Material and Substrate segments.


The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, diffusion furnaces, and customer high-temp belt furnaces for use by semiconductor manufacturers, as well as in electronics, automotive and other industries; and wafer polishing equipment and related services.Its products include horizontal diffusion furnaces; and belt furnaces.The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications.


This segment also offers substrate process chemicals for use in various manufacturing processes, including semiconductors, silicon and compound semiconductor wafers, and optics.The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors.The company was formerly known as Quartz Engineering & Materials, Inc.


and changed its name to Amtech Systems, Inc.in 1987.Amtech Systems, Inc.


was incorporated in 1981 and is headquartered in Tempe, Arizona.

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1.b. Last Insights on ASYS

Amtech Systems' recent stock performance was negatively driven by increased competition in the semiconductor equipment market, partly offset by the company's solid Q1 2025 earnings and revenue beat. However, the company's guidance for Q2 2025 was below expectations, which may have contributed to the negative sentiment. Additionally, the company's recent share price movements have been impacted by its crossing above key moving averages, but this technical analysis does not necessarily reflect the company's fundamental performance.

1.c. Company Highlights

2. Amtech Systems Beats Expectations with Strong Q3 Revenue Growth

Amtech Systems reported a robust fiscal third quarter 2025 performance, with revenues rising 26% sequentially to $19.6 million, driven primarily by strong demand in Asia for reflow ovens used in AI applications. The company's adjusted EBITDA also came in above expectations at $2.2 million, benefiting from a non-recurring Employee Retention Credit. Non-GAAP net income for the third quarter of fiscal 2025 was $0.9 million or $0.06 per share, surpassing analyst estimates of -$0.08 per share. GAAP gross margin increased by $9.5 million sequentially from the prior quarter, primarily due to the absence of $6 million in non-cash inventory write-downs recorded last quarter.

Publication Date: Aug -22

📋 Highlights
  • Revenue Growth:: Fiscal Q3 revenue reached $19.6 million, a 26% sequential increase from the prior quarter.
  • Adjusted EBITDA:: Exceeded expectations at $2.2 million, aided by a nonrecurring Employee Retention Credit.
  • AI-Driven Demand:: Revenue growth driven by strong Asian demand for reflow ovens in AI infrastructure applications.
  • Gross Margin Improvement:: GAAP gross margin rose $9.5 million sequentially due to absence of $6 million in prior quarter inventory write-downs.
  • Q4 Outlook:: Revenue guidance set at $17–19 million, with adjusted EBITDA margins projected in mid-single digits.

Segment Performance

The Thermal Processing Solutions segment was a highlight in the quarter, with advanced semiconductor packaging driven primarily by ongoing investments in AI infrastructure. As Bob Daigle noted, "continued strength driven primarily by ongoing investments in AI infrastructure" was a key factor in the segment's performance. The growth in AI-related equipment sales is expected to continue in the fiscal fourth quarter.

Outlook and Guidance

For the fiscal fourth quarter ending September 30, 2025, Amtech Systems expects revenues in the range of $17 million to $19 million. The company anticipates that growth in AI-related equipment sales in its Thermal Processing Solutions segment will partially offset continued softness in the mature node semiconductor product lines. With the benefit of previously implemented structural and operational cost reductions, the company expects to deliver improved operating leverage, resulting in adjusted EBITDA margins in the mid-single digits.

Valuation and Estimates

With a P/E Ratio of -2.7 and an EV/EBITDA of -3.29, the market appears to have already priced in some level of distress. However, the company's Free Cash Flow Yield of 7.21% suggests that the stock may be undervalued. Analysts estimate revenue growth of 12.9% next year, which could potentially drive the stock higher if the company can continue to execute on its growth strategy. The ROE of -47.74% and ROIC of -43.51% indicate that the company still faces significant challenges, but the recent beat and guidance raise may be a positive step in the right direction.

3. NewsRoom

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Amtech Reports Preliminary Fiscal 2025 Fourth Quarter and Full Year Results

Dec -01

Source: businesswire.com

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ASYS vs. LRCX: Which Semiconductor Equipment Stock is the Better Buy?

Oct -24

Source: zacks.com

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Can ASYS' AI Packaging Growth Offset Weak Mature Node Demand?

Oct -20

Source: zacks.com

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Amtech Systems Stock Soars 91% in 3 Months: Hold or Book Profit?

Oct -13

Source:

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Amtech Systems: Upgrading To Buy On Bullish AI-Related Equipment Revenue Growth

Sep -25

Source: seekingalpha.com

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ASYS' Cost Reduction Initiatives: Can it Drive Margin Expansion?

Sep -17

Source: zacks.com

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ASYS vs. AMAT: Which Semiconductor Equipment Stock is the Better Buy?

Sep -15

Source: zacks.com

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This Top-Ranked Small-Cap Semiconductor Stock is Critical to AI

Sep -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.37%)

6. Segments

Semiconductor

Expected Growth: 6%

Amtech Systems, Inc.'s 6% growth in Semiconductor segment is driven by increasing demand for 5G and IoT devices, rising adoption of artificial intelligence and machine learning, and growing need for advanced semiconductor materials. Additionally, the company's focus on innovation, strategic acquisitions, and expanding presence in emerging markets also contribute to its growth.

Material and Substrate

Expected Growth: 4%

Amtech Systems' Material and Substrate segment growth is driven by increasing demand for silicon carbide (SiC) and silicon nitride (Si3N4) materials in the semiconductor industry, particularly in the electric vehicle and 5G markets. Additionally, the company's strategic acquisitions and expansion into new markets, such as China, contribute to its growth.

7. Detailed Products

Dyna Etch

A dry etch product line that provides a wide range of etch processes for semiconductor manufacturing

Vector Plasma Etch

A plasma etch product line that offers high-performance etch capabilities for advanced semiconductor devices

Apex PECVD

A plasma-enhanced chemical vapor deposition (PECVD) product line that provides high-quality thin films for semiconductor manufacturing

Helios ICP Etch

An inductively coupled plasma (ICP) etch product line that offers high-performance etch capabilities for advanced semiconductor devices

Spectra PVD

A physical vapor deposition (PVD) product line that provides high-quality thin films for semiconductor manufacturing

Reliant Etch

A dry etch product line that provides high-performance etch capabilities for advanced semiconductor devices

8. Amtech Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Amtech Systems, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Amtech Systems, Inc. is high due to the concentration of buyers in the market and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Amtech Systems, Inc. is low due to the availability of multiple suppliers in the market and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Amtech Systems, Inc. is medium due to the moderate barriers to entry in the market and the availability of resources for new entrants.

Intensity Of Rivalry

The intensity of rivalry for Amtech Systems, Inc. is high due to the high level of competition in the market and the company's need to differentiate itself from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.08%
Debt Cost 3.95%
Equity Weight 79.92%
Equity Cost 11.17%
WACC 9.72%
Leverage 25.13%

11. Quality Control: Amtech Systems, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Amtech Systems

A-Score: 4.4/10

Value: 7.1

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
nLIGHT

A-Score: 4.1/10

Value: 6.4

Growth: 2.6

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
indie Semiconductor

A-Score: 3.9/10

Value: 7.0

Growth: 4.8

Quality: 4.2

Yield: 0.0

Momentum: 6.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
AXT

A-Score: 3.9/10

Value: 8.0

Growth: 0.8

Quality: 4.2

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
CEVA

A-Score: 3.6/10

Value: 6.8

Growth: 1.4

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Mobix Labs

A-Score: 3.4/10

Value: 6.6

Growth: 6.9

Quality: 3.0

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.97$

Current Price

8.97$

Potential

-0.00%

Expected Cash-Flows