Don't overlook NASDAQ:ACLS—a stock with solid growth prospects and a reasonable valuation.

Last update: Jun 11, 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.

Growth Examination for NASDAQ:ACLS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ACLS has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 33.51% 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.
Looking at the last year, ACLS shows a quite strong growth in Revenue. The Revenue has grown by 16.33% in the last year.
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.
The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.

A Closer Look at 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 6 out of 10:

Based on the Price/Earnings ratio, ACLS is valued cheaply inside the industry as 87.04% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ACLS to the average of the S&P500 Index (28.19), we can say ACLS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, ACLS is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 19.98. ACLS is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACLS indicates a rather cheap valuation: ACLS is cheaper than 87.96% of the companies listed in the same industry.
78.70% of the companies in the same industry are more expensive than ACLS, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of ACLS may justify a higher PE ratio.

Health Analysis for NASDAQ:ACLS

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:

ACLS has an Altman-Z score of 8.83. This indicates that ACLS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 8.83, ACLS is doing good in the industry, outperforming 75.00% 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.
ACLS has a Debt to FCF ratio of 0.31. This is amongst the best in the industry. ACLS outperforms 80.56% of its industry peers.
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 61.11% of the companies in the same industry.
A Current Ratio of 4.00 indicates that ACLS has no problem at all paying its short term obligations.
ACLS has a better Current ratio (4.00) than 62.96% of its industry peers.
A Quick Ratio of 2.87 indicates that ACLS has no problem at all paying 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:

ACLS has a Return On Assets of 19.14%. This is amongst the best in the industry. ACLS outperforms 93.52% of its industry peers.
Looking at the Return On Equity, with a value of 27.74%, ACLS belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 23.38%, ACLS belongs to the top of the industry, outperforming 93.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACLS is significantly above the industry average of 10.85%.
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 better Profit Margin (22.16%) than 79.63% of its industry peers.
In the last couple of years the Profit Margin of ACLS has grown nicely.
ACLS has a better Operating Margin (24.00%) than 79.63% of its industry peers.
ACLS's Operating Margin has improved in the last couple of years.

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. 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.