Yahoo Finance Introducing Amtech Systems (NASDAQ:ASYS), The Stock That Slid 55% In The Last Five Years
Statistically speaking, long term investing is a profitable endeavour. But no-one is immune from buying too high. For example the Amtech Systems, Inc. (NASDAQ:ASYS) share price dropped 55% over five years. That is extremely sub-optimal, to say the least. Furthermore, it's down 12% in about a quarter. That's not much fun for holders. But this could be related to the weak market, which is down 12% in the same period.
See our latest analysis for Amtech Systems
Given that Amtech Systems only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.
Over half a decade Amtech Systems reduced its trailing twelve month revenue by 0.07% for each year. While far from catastrophic that is not good. With neither profit nor revenue growth, the loss of 15% per year doesn't really surprise us. We don't think anyone is rushing to buy this stock. Not that many investors like to invest in companies that are losing money and not growing revenue.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Amtech Systems will earn in the future (free profit forecasts).
A Different Perspective
While the broader market gained around 6.1% in the last year, Amtech Systems shareholders lost 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 15% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Amtech Systems , and understanding them should be part of your investment process.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
