The entity currently holds 11.46
M in liabilities with Debt to Equity (D/E) ratio of 0.12, which may suggest Amtech Systems is not taking enough advantage from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Amtech Systems has an asset utilization ratio of 83.02 percent. This connotes that the company is making $0.83 for each dollar of assets. An increasing asset utilization means that Amtech Systems is more efficient with each dollar of assets it utilizes for everyday operations.
Amtech Systems financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Amtech Systems, including all of Amtech Systems's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Amtech Systems assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Amtech Systems debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding Amtech Total Liabilities
Amtech Systems liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Amtech Systems has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Amtech Systems balance sheet include debt obligations and money owed to different Amtech Systems vendors, workers, and loan providers. Below is the chart of Amtech short long-term liabilities accounts currently reported on its balance sheet.
You can use Amtech Systems
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Amtech Systems's Liquidity
Amtech Systems
financial leverage refers to using borrowed capital as a funding source to finance Amtech Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Amtech Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Amtech Systems' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Amtech Systems' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Amtech Systems's total debt and its cash.
Details
The firm reported the previous year's revenue of 98.32
M. Net Income was 13.85
M with profit before overhead, payroll, taxes, and interest of 34.53
M.
Asset Breakdown
| Total Assets | 148.06 Million |
| Current Assets | 109.71 Million |
| Assets Non Current | 29.27 Million |
| Goodwill | 10.82 Million |
| Tax Assets | 1.55 Million |
Amtech Systems has 88 percent chance to fall way below $10.72 in December
The jensen alpha is down to -0.11 as of today.
As of the 30th of November, Amtech Systems shows the
risk adjusted performance of
(0.008554), and Mean Deviation of 2.58. Amtech Systems
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have analyzed and interpolated nineteen
technical drivers for Amtech Systems, which can be compared to its rivals. Please confirm
Amtech Systems variance and
potential upside to decide if Amtech Systems is priced correctly, providing market reflects its regular price of 10.94 per share. Given that Amtech Systems has
jensen alpha of
(0.11), we suggest you to validate Amtech Systems's prevailing market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Amtech Systems Investment
While some companies in the semiconductor equipment & materials industry are either recovering or due for a correction, Amtech Systems may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 30th of November 2022, we believe that Amtech Systems is currently
undervalued with
very low probability of distress in the next two years. Our ongoing 90 days buy-or-sell advice on the enterprise is
Strong Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Amtech Systems. Please refer to our
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