Amtech Systems Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for Amtech Systems's Gross Margin % or its related term are showing as below:
ASYS'
s Gross Margin % Range Over the Past 10 Years
Min: 20.58 Med: 37.04 Max: 40.53
Current: 30.4
During the past 13 years, the highestGross Margin % of Amtech Systems was 40.53%. The lowest was 20.58%. And the median was 37.04%.
ASYS's Gross Margin % is ranked better than 54.12% of 972
companies
in the Semiconductors industry
Industry Median: 28.165
vs ASYS: 30.40
Amtech Systems had a gross margin of 32.98% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Amtech Systems was -2.50% per year.
Amtech Systems Gross Margin % Historical Data
The historical data trend for Amtech Systems's Gross Margin % can be seen below:
* 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.
Competitive Comparison of Amtech Systems's Gross Margin %
For the Semiconductor Equipment & Materials subindustry, Amtech Systems's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Amtech Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amtech Systems's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Amtech Systems (NAS:ASYS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Amtech Systems had a gross margin of 32.98% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Amtech Systems Gross Margin % Related Terms
Thank you for viewing the detailed overview of Amtech Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Amtech Systems (Amtech Systems) Business Description
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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