NASDAQ:ACLS is showing good growth, while it is not too expensive.

Last update: Nov 10, 2023

Consider AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS) as an affordable growth stock, identified by our stock screening tool. NASDAQ:ACLS is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Exploring NASDAQ:ACLS's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:ACLS scores a 8 out of 10:

ACLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.63%, which is quite impressive.
The Earnings Per Share has been growing by 30.01% on average over the past years. This is a very strong growth
ACLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.38%.
ACLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.51% yearly.
Based on estimates for the next years, ACLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.75% on average per year.
Based on estimates for the next years, ACLS will show a quite strong growth in Revenue. The Revenue will grow by 13.54% on average per year.

Looking at the Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:ACLS was assigned a score of 6 for valuation:

Based on the Price/Earnings ratio, ACLS is valued a bit cheaper than 65.71% of the companies in the same industry.
ACLS is valuated rather cheaply when we compare the Price/Earnings ratio to 23.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, ACLS is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, ACLS is valued a bit cheaper than 68.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACLS indicates a somewhat cheap valuation: ACLS is cheaper than 76.19% of the companies listed in the same industry.
ACLS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ACLS may justify a higher PE ratio.
ACLS's earnings are expected to grow with 19.75% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:ACLS's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ACLS has received a 7 out of 10:

ACLS has an Altman-Z score of 9.03. This indicates that ACLS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.03, ACLS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ACLS has a debt to FCF ratio of 0.23. This is a very positive value and a sign of high solvency as it would only need 0.23 years to pay back of all of its debts.
ACLS's Debt to FCF ratio of 0.23 is amongst the best of the industry. ACLS outperforms 83.81% of its industry peers.
ACLS has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
ACLS has a Current Ratio of 3.89. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.
ACLS has a Quick Ratio of 2.69. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.

What does the Profitability looks like for NASDAQ:ACLS

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:ACLS, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 19.32%, ACLS belongs to the best of the industry, outperforming 87.62% of the companies in the same industry.
ACLS has a better Return On Equity (28.99%) than 82.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.11%, ACLS belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACLS is above the industry average of 12.85%.
The last Return On Invested Capital (22.11%) for ACLS is above the 3 year average (17.01%), which is a sign of increasing profitability.
With a decent Profit Margin value of 21.37%, ACLS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
With a decent Operating Margin value of 22.35%, ACLS is doing good in the industry, outperforming 72.38% of the companies in the same industry.
In the last couple of years the Operating Margin of ACLS has grown nicely.
In the last couple of years the Gross Margin of ACLS has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of ACLS contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.