AmpliTech Group, Inc. (NASDAQ: AMPG)

Sector: Technology Industry: Communication Equipment CIK: 0001518461
Market Cap 44.24 Mn
P/B 1.24
P/E -5.80
P/S 1.96
ROIC (Qtr) -20.86
Div Yield % 0.00
Rev 1y % (Qtr) 114.99
Total Debt (Qtr) 4.30 Mn
Debt/Equity (Qtr) 0.12

About

AmpliTech Group, Inc. (AMPG) operates in the high-power RF semiconductor industry, with its headquarters in Hauppauge, New York. The company is a key player in the design, engineering, and assembly of microwave component-based amplifiers tailored to individual customer specifications. AmpliTech Group's main business activities encompass the production of a wide range of products, including low noise amplifiers, medium power amplifiers, cryogenic amplifiers, and custom assembly designs. These products cater to various industries, such as aerospace,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 8.39M provide 16.65x coverage of short-term debt 503642, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 28.98M provides 6.74x coverage of total debt 4.30M, indicating robust asset backing and low credit risk.
  • Strong free cash flow of (7.37M) provides 2.11x coverage of acquisition spending (3.50M), indicating disciplined M&A strategy.
  • Tangible assets of 28.98M provide robust 9.44x coverage of other current liabilities 3.07M, indicating strong asset backing.
  • Cash reserves of 8.39M provide solid 215.06x coverage of other non-current liabilities 39000, indicating strong liquidity.

Bear case

  • Investment activities of (5.69M) provide weak support for R&D spending of 4.38M, which is -1.30x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 8.39M provide limited coverage of acquisition spending of (3.50M), which is -2.40x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (6.43M) shows concerning coverage of stock compensation expenses of 503614, with a -12.76 ratio indicating potential earnings quality issues.
  • Free cash flow of (7.37M) provides weak coverage of capital expenditures of 946617, with a -7.79 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (6.43M) provides minimal -428.43x coverage of tax expenses of 15000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 425.48 Bn 43.28 8.76 28.09 Bn
2 MSI Motorola Solutions, Inc. 71.64 Bn 127.93 11.87 9.81 Bn
3 CIEN Ciena Corp 38.46 Bn 311.86 8.06 1.58 Bn
4 LITE Lumentum Holdings Inc. 38.36 Bn 152.48 18.22 3.32 Bn
5 UI Ubiquiti Inc. 37.65 Bn 42.36 12.67 0.11 Bn
6 HPE Hewlett Packard Enterprise Co 30.92 Bn 12.11 1.03 22.37 Bn
7 ASTS AST SpaceMobile, Inc. 27.86 Bn -91.70 1,503.54 0.72 Bn
8 ZBRA Zebra Technologies Corp 12.90 Bn 25.19 2.45 2.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.80 2.55
EV to Cash from Ops. EV/CFO -5.85 10.31
EV to Debt EV to Debt 8.75 31.95
EV to EBIT EV/EBIT -4.99 87.00
EV to EBITDA EV/EBITDA -5.41 10.88
EV to Free Cash Flow [EV/FCF] EV/FCF -5.10 62.78
EV to Market Cap EV to Market Cap 0.85 1.09
EV to Revenue EV/Rev 1.67 38.48
Price to Book Value [P/B] P/B 1.24 3.65
Price to Earnings [P/E] P/E -5.80 21.22
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.61
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -24.04
Dividend per Basic Share Div per Share (Qtr) 0.00 0.23
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.73
Interest Coverage Int. cover (Qtr) -112.25 -11.69
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1,290.28 -57.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 679.09 465.23
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.58
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.51 72.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -98.66 -8.57
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.41 69.66
EBT Growth (1y) % EBT 1y % (Qtr) 3.96 -70.46
EPS Growth (1y) % EPS 1y % (Qtr) 37.80 8.86
FCF Growth (1y) % FCF 1y % (Qtr) -24.93 10.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.67 38.81
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.48 0.75
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.11 1.35
Current Ratio Curr Ratio (Qtr) 2.85 2.84
Debt to Equity Ratio Debt/Equity (Qtr) 0.12 0.47
Interest Cover Ratio Int Coverage (Qtr) -112.25 -11.69
Times Interest Earned Times Interest Earned (Qtr) -112.25 -11.69
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -27.10 -41.21
EBIT Margin % EBIT Margin % (Qtr) -33.40 -52.62
EBT Margin % EBT Margin % (Qtr) -33.70 -59.46
Gross Margin % Gross Margin % (Qtr) 23.10 38.49
Net Profit Margin % Net Margin % (Qtr) -33.80 -60.82