For those who appreciate value investing, NASDAQ:ACLS is a compelling option with its solid fundamentals.

Our stock screening tool has identified AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS) as an undervalued gem with strong fundamentals. NASDAQ:ACLS boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

How do we evaluate the Valuation for NASDAQ:ACLS?

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:ACLS scores a 8 out of 10:

• Based on the Price/Earnings ratio, ACLS is valued cheaply inside the industry as 81.90% of the companies are valued more expensively.
• ACLS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
• ACLS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACLS is cheaper than 90.48% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, ACLS is valued a bit cheaper.
• 83.81% of the companies in the same industry are more expensive than ACLS, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, ACLS is valued cheaper than 83.81% of the companies 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.
• ACLS has an outstanding profitability rating, which may justify a higher PE ratio.
• ACLS's earnings are expected to grow with 18.98% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:ACLS has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 19.32%, ACLS belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
• ACLS has a better Return On Equity (28.99%) than 84.76% of its industry peers.
• ACLS has a Return On Invested Capital of 22.11%. This is amongst the best in the industry. ACLS outperforms 91.43% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ACLS is above the industry average of 12.27%.
• The 3 year average ROIC (17.01%) for ACLS is below the current ROIC(22.11%), indicating increased profibility in the last year.
• The Profit Margin of ACLS (21.37%) is better than 76.19% of its industry peers.
• ACLS has a Operating Margin of 22.36%. This is in the better half of the industry: ACLS outperforms 74.29% of its industry peers.
• In the last couple of years the Operating Margin of ACLS has grown nicely.
• ACLS's Gross Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ACLS scores a 8 out of 10:

• An Altman-Z score of 8.22 indicates that ACLS is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 8.22, ACLS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
• The Debt to FCF ratio of ACLS is 0.23, which is an excellent value as it means it would take ACLS, only 0.23 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of ACLS (0.23) is better than 82.86% 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.
• A Current Ratio of 3.89 indicates that ACLS has no problem at all paying its short term obligations.
• ACLS's Current ratio of 3.89 is fine compared to the rest of the industry. ACLS outperforms 63.81% of its industry peers.
• A Quick Ratio of 2.69 indicates that ACLS has no problem at all paying its short term obligations.

A Closer Look at Growth for NASDAQ:ACLS

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:ACLS has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 45.63% over the past year.
• Measured over the past years, ACLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.01% on average per year.
• The Revenue has grown by 26.37% in the past year. This is a very strong growth!
• ACLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.51% yearly.
• The Earnings Per Share is expected to grow by 18.98% on average over the next years. This is quite good.
• ACLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.54% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of ACLS for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.