For those who appreciate growth without the sticker shock, NASDAQ:ACLS is worth considering.

Last update: Feb 26, 2024

Our stock screener has spotted AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS) as a growth stock which is not overvalued. NASDAQ:ACLS is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Understanding NASDAQ:ACLS's Growth

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 40.65% on average per year.
The Revenue has grown by 26.37% in the past year. This is a very strong growth!
Measured over the past years, ACLS shows a very strong growth in Revenue. The Revenue has been growing by 20.63% on average per year.
ACLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.27% yearly.

Understanding NASDAQ:ACLS's Valuation Score

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ACLS has achieved a 6 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of ACLS indicates a rather cheap valuation: ACLS is cheaper than 87.62% of the companies listed in the same industry.
ACLS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
89.52% of the companies in the same industry are more expensive than ACLS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ACLS to the average of the S&P500 Index (21.62), we can say ACLS is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, ACLS is valued cheaper than 85.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACLS indicates a rather cheap valuation: ACLS is cheaper than 87.62% of the companies listed in the same industry.
The excellent profitability rating of ACLS may justify a higher PE ratio.

Exploring NASDAQ:ACLS's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ACLS, the assigned 8 reflects its health status:

An Altman-Z score of 8.01 indicates that ACLS is not in any danger for bankruptcy at the moment.
ACLS has a better Altman-Z score (8.01) than 75.24% of its industry peers.
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.
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.
Looking at the Debt to Equity ratio, with a value of 0.06, ACLS is in the better half of the industry, outperforming 60.95% of the companies in the same industry.
A Current Ratio of 3.89 indicates that ACLS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.89, ACLS is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
A Quick Ratio of 2.69 indicates that ACLS has no problem at all paying its short term obligations.

A Closer Look at Profitability 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:

ACLS's Return On Assets of 19.32% is amongst the best of the industry. ACLS outperforms 91.43% of its industry peers.
ACLS has a Return On Equity of 28.99%. This is amongst the best in the industry. ACLS outperforms 86.67% of its industry peers.
ACLS has a better Return On Invested Capital (22.95%) than 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACLS is significantly above the industry average of 11.64%.
The last Return On Invested Capital (22.95%) for ACLS is above the 3 year average (22.37%), which is a sign of increasing profitability.
ACLS has a better Profit Margin (21.37%) than 77.14% of its industry peers.
In the last couple of years the Profit Margin of ACLS has grown nicely.
Looking at the Operating Margin, with a value of 22.36%, ACLS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of ACLS has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.