NASDAQ:ACLS, a growth stock which is not overvalued.

Last update: Aug 15, 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.

Assessing Growth for 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 16.91%, which is quite good.
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 8.62%.
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.

Evaluating Valuation: NASDAQ:ACLS

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:ACLS has earned a 6 for valuation:

89.91% of the companies in the same industry are more expensive than ACLS, based on the Price/Earnings ratio.
ACLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.02.
Based on the Price/Forward Earnings ratio, ACLS is valued cheaper than 84.40% of the companies in the same industry.
ACLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.56, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, ACLS is valued cheaper than 91.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACLS is valued cheaply inside the industry as 81.65% of the companies are valued more expensively.
ACLS has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Health for NASDAQ:ACLS?

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ACLS scores a 8 out of 10:

ACLS has an Altman-Z score of 8.96. This indicates that ACLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ACLS (8.96) is better than 77.98% of its industry peers.
The Debt to FCF ratio of ACLS is 0.29, which is an excellent value as it means it would take ACLS, only 0.29 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.29, ACLS belongs to the best of the industry, outperforming 82.57% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that ACLS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.05, ACLS is doing good in the industry, outperforming 60.55% of the companies in the same industry.
ACLS has a Current Ratio of 4.42. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.
ACLS's Current ratio of 4.42 is fine compared to the rest of the industry. ACLS outperforms 67.89% of its industry peers.
ACLS has a Quick Ratio of 3.26. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.
ACLS's Quick ratio of 3.26 is fine compared to the rest of the industry. ACLS outperforms 63.30% of its industry peers.

Profitability Assessment of 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 18.58%, ACLS belongs to the top of the industry, outperforming 94.50% of the companies in the same industry.
ACLS has a Return On Equity of 25.61%. This is amongst the best in the industry. ACLS outperforms 88.99% of its industry peers.
ACLS's Return On Invested Capital of 22.14% is amongst the best of the industry. ACLS outperforms 93.58% of its industry peers.
ACLS had an Average Return On Invested Capital over the past 3 years of 22.37%. This is significantly above the industry average of 10.69%.
ACLS has a better Profit Margin (21.54%) than 79.82% of its industry peers.
In the last couple of years the Profit Margin of ACLS has grown nicely.
ACLS's Operating Margin of 23.40% is fine compared to the rest of the industry. ACLS outperforms 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.

Keep in mind

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.