Investors should take note of NASDAQ:ACLS, a growth stock that remains attractively priced.

Last update: Jul 3, 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.

Evaluating Growth: 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 7 out of 10:

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.
The Revenue has grown by 16.33% in the past year. This is quite good.
ACLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.63% yearly.
ACLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.27% yearly.

Deciphering NASDAQ:ACLS's Valuation Rating

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 5 out of 10:

Based on the Price/Earnings ratio, ACLS is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
ACLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
Based on the Price/Forward Earnings ratio, ACLS is valued cheaper than 80.37% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, ACLS is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACLS is valued a bit cheaper than 78.50% of the companies in the same industry.
ACLS has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing Health for NASDAQ:ACLS

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

An Altman-Z score of 9.50 indicates that ACLS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 9.50, ACLS is doing good in the industry, outperforming 74.77% of the companies in the same industry.
The Debt to FCF ratio of ACLS is 0.31, which is an excellent value as it means it would take ACLS, only 0.31 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.31, ACLS belongs to the best 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 61.68% 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.
The Current ratio of ACLS (4.00) is better than 62.62% of its industry peers.
A Quick Ratio of 2.87 indicates that ACLS has no problem at all paying its short term obligations.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ACLS, the assigned 8 is a significant indicator of profitability:

The Return On Assets of ACLS (19.14%) is better than 94.39% of its industry peers.
With an excellent Return On Equity value of 27.74%, ACLS belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
ACLS has a Return On Invested Capital of 23.38%. This is amongst the best in the industry. ACLS outperforms 93.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACLS is significantly above the industry average of 10.82%.
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 79.44% of its industry peers.
ACLS's Profit Margin has improved in the last couple of years.
ACLS's Operating Margin of 24.00% is fine compared to the rest of the industry. ACLS outperforms 79.44% of its industry peers.
In the last couple of years the Operating Margin of ACLS has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

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.