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

Last update: Jul 24, 2024

AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS) was identified as an affordable growth stock by our stock screener. NASDAQ:ACLS is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Deciphering NASDAQ:ACLS's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ACLS has received 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.
The Earnings Per Share has been growing by 40.65% on average over the past years. This is a very strong growth
ACLS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.33%.
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.

How do we evaluate the Valuation for NASDAQ:ACLS?

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:

Based on the Price/Earnings ratio, ACLS is valued cheaper than 88.99% 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 28.86.
83.49% of the companies in the same industry are more expensive than ACLS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.69. ACLS is valued slightly cheaper when compared to this.
ACLS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACLS is cheaper than 89.91% of the companies in the same industry.
ACLS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACLS is cheaper than 79.82% of the companies in the same industry.
The excellent profitability rating of ACLS may justify a higher PE ratio.

Evaluating Health: 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 9.27. This indicates that ACLS is financially healthy and has little risk of bankruptcy at the moment.
ACLS's Altman-Z score of 9.27 is fine compared to the rest of the industry. ACLS outperforms 76.15% of its industry peers.
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 81.65% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that ACLS is not too dependend on debt financing.
ACLS has a better Debt to Equity ratio (0.05) than 60.55% of its industry peers.
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.
ACLS has a better Current ratio (4.00) than 63.30% of its industry peers.
A Quick Ratio of 2.87 indicates that ACLS has no problem at all paying its short term obligations.

Profitability Examination for NASDAQ:ACLS

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 19.14%, ACLS belongs to the top of the industry, outperforming 94.50% of the companies in the same industry.
The Return On Equity of ACLS (27.74%) is better than 88.99% of its industry peers.
With an excellent Return On Invested Capital value of 23.38%, ACLS belongs to the best of the industry, outperforming 94.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACLS is significantly above the industry average of 10.84%.
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 79.82% 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 79.82% 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.

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.