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Amtech Systems (STU:AS3) Financial Strength : 6 (As of Mar. 2024)


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What is Amtech Systems Financial Strength?

Amtech Systems has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Amtech Systems did not have earnings to cover the interest expense. Amtech Systems's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.14. As of today, Amtech Systems's Altman Z-Score is 1.72.


Competitive Comparison of Amtech Systems's Financial Strength

For the Semiconductor Equipment & Materials subindustry, Amtech Systems's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Amtech Systems's Financial Strength Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Amtech Systems's Financial Strength distribution charts can be found below:

* The bar in red indicates where Amtech Systems's Financial Strength falls into.



Amtech Systems Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Amtech Systems's Interest Expense for the months ended in Mar. 2024 was €-0.2 Mil. Its Operating Income for the months ended in Mar. 2024 was €-0.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €7.6 Mil.

Amtech Systems's Interest Coverage for the quarter that ended in Mar. 2024 is

Amtech Systems did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Amtech Systems's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5.683 + 7.599) / 93.592
=0.14

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Amtech Systems has a Z-score of 1.72, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.72 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Amtech Systems  (STU:AS3) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Amtech Systems has the Financial Strength Rank of 6.


Amtech Systems Financial Strength Related Terms

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Amtech Systems (STU:AS3) Business Description

Traded in Other Exchanges
Address
131 South Clark Drive, Tempe, AZ, USA, 85288
Amtech Systems Inc is a manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power chips, electronic assemblies, and light-emitting diodes (LEDs). the company has two segments; Semiconductor; it designs, manufactures, sells, and services thermal processing equipment and related controls for use by semiconductor manufacturers, and in electronics, automotive, and other industries; and Material and Substrate - it produces consumables and machinery for lapping (fine abrading) and polishing of materials, such as sapphire substrates, optical components, silicon wafers, numerous types of crystal materials, ceramics and metal components.

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