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

Last update: May 21, 2024

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.

Assessing Growth for NASDAQ:ACLS

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ACLS, the assigned 7 reflects its growth potential:

ACLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.51%, which is quite impressive.
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.
Looking at the last year, ACLS shows a quite strong growth in Revenue. The Revenue has grown by 16.33% in the last year.
ACLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.63% yearly.
Based on estimates for the next years, ACLS will show a quite strong growth in Revenue. The Revenue will grow by 10.27% on average per year.

Valuation Analysis for NASDAQ:ACLS

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:ACLS boasts a 6 out of 10:

Based on the Price/Earnings ratio, ACLS is valued cheaper than 88.78% of the companies in the same industry.
ACLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.67.
Based on the Price/Forward Earnings ratio, ACLS is valued cheaper than 86.92% of the companies in the same industry.
ACLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACLS indicates a rather cheap valuation: ACLS is cheaper than 93.46% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACLS is valued cheaply inside the industry as 81.31% of the companies are valued more expensively.
The excellent profitability rating of ACLS may justify a higher PE ratio.

Health Assessment of NASDAQ:ACLS

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:ACLS has earned a 8 out of 10:

ACLS has an Altman-Z score of 8.26. 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 8.26, ACLS is in the better half of the industry, outperforming 74.77% of the companies in the same industry.
ACLS has a debt to FCF ratio of 0.31. This is a very positive value and a sign of high solvency as it would only need 0.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.31, ACLS belongs to the top of the industry, outperforming 81.31% of the companies in the same industry.
ACLS has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.05, ACLS is in the better half of the industry, outperforming 62.62% of the companies in the same industry.
ACLS has a Current Ratio of 4.00. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.00, ACLS is doing good in the industry, outperforming 62.62% of the companies in the same industry.
ACLS has a Quick Ratio of 2.87. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the 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:

The Return On Assets of ACLS (19.14%) is better than 93.46% of its industry peers.
With an excellent Return On Equity value of 27.74%, ACLS belongs to the best of the industry, outperforming 87.85% of the companies in the same industry.
ACLS's Return On Invested Capital of 23.38% is amongst the best of the industry. ACLS outperforms 93.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACLS is significantly above the industry average of 10.73%.
The last Return On Invested Capital (23.38%) for ACLS is above the 3 year average (22.37%), which is a sign of increasing profitability.
ACLS has a Profit Margin of 22.16%. This is in the better half of the industry: ACLS outperforms 78.50% of its industry peers.
ACLS's Profit Margin has improved in the last couple of years.
ACLS has a better Operating Margin (24.00%) than 79.44% of its industry peers.
In the last couple of years the Operating Margin of ACLS has grown nicely.

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For an up to date full fundamental analysis you can check the fundamental report of ACLS

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.