Amtech Systems: In Vogue, And With Good Reason, But Don't Chase Now
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The Alpha Sieve4.74K FollowersFollow5ShareSavePlay(10min)CommentsSummaryAmtech Systems (ASYS) has delivered exceptional YTD returns of 118%, outperforming micro-caps and the semiconductor sector by a wide margin.ASYS's Thermal Processing Solutions division is benefiting from AI-driven demand, coupled with useful recurring high-margin revenue.ASYS's SG&A base has been curtailed, lesser funds are being tied up in working capital and it now has a leaner, asset-light operating model.ASYS is set to see growth of 134% in its EBITDA base next year, more than justifying its EBITDA multiple of 14x, while its earnings multiple of 40x is cheaper than peers.Despite all these merits, we would advise investors not to chase the stock and wait for a pullback.
Getty Images Company Snapshot Amtech Systems (ASYS), a semiconductor equipment maker, has been providing manufacturing solutions to the semiconductor industry for around three decades now. ASYS’s main expertise lies in the field of heat management equipment (70% of sales), where their automatedThis article was written byThe Alpha Sieve4.74K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.