Investors seeking growth at a reasonable cost should explore NASDAQ:ACLS.

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.

Growth Assessment of 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 8 reflects its growth potential:

• ACLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.63%, 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 30.01% on average per year.
• The Revenue has grown by 26.37% in the past year. This is a very strong growth!
• ACLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.51% yearly.
• The Earnings Per Share is expected to grow by 18.98% on average over the next years. This is quite good.
• Based on estimates for the next years, ACLS will show a quite strong growth in Revenue. The Revenue will grow by 13.54% on average per year.

Evaluating Valuation: NASDAQ:ACLS

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:ACLS was assigned a score of 7 for valuation:

• Based on the Price/Earnings ratio, ACLS is valued a bit cheaper than 77.14% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 25.63, ACLS is valued a bit cheaper.
• Based on the Price/Forward Earnings ratio, ACLS is valued cheaply inside the industry as 84.76% of the companies are valued more expensively.
• ACLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.19.
• Based on the Enterprise Value to EBITDA ratio, ACLS is valued a bit cheaper than the industry average as 75.24% of the companies are valued more expensively.
• 83.81% of the companies in the same industry are more expensive than ACLS, based on the Price/Free Cash Flow ratio.
• ACLS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ACLS has an outstanding profitability rating, which may justify a higher PE ratio.
• ACLS's earnings are expected to grow with 18.98% in the coming years. This may justify a more expensive valuation.

Looking at the Health

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 9.24. This indicates that ACLS is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 9.24, ACLS is doing good in the industry, outperforming 77.14% of the companies in the same industry.
• The Debt to FCF ratio of ACLS is 0.23, which is an excellent value as it means it would take ACLS, only 0.23 years of fcf income to pay off all of its debts.
• ACLS has a better Debt to FCF ratio (0.23) than 82.86% of its industry peers.
• A Debt/Equity ratio of 0.06 indicates that ACLS is not too dependend on debt financing.
• A Current Ratio of 3.89 indicates that ACLS has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 3.89, ACLS is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
• ACLS has a Quick Ratio of 2.69. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.

What does the Profitability looks like for NASDAQ:ACLS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:ACLS was assigned a score of 8 for profitability:

• Looking at the Return On Assets, with a value of 19.32%, ACLS belongs to the top of the industry, outperforming 87.62% of the companies in the same industry.
• ACLS has a better Return On Equity (28.99%) than 84.76% of its industry peers.
• ACLS's Return On Invested Capital of 22.11% is amongst the best of the industry. ACLS outperforms 90.48% of its industry peers.
• ACLS had an Average Return On Invested Capital over the past 3 years of 17.01%. This is above the industry average of 12.23%.
• The last Return On Invested Capital (22.11%) for ACLS is above the 3 year average (17.01%), which is a sign of increasing profitability.
• ACLS has a better Profit Margin (21.37%) than 76.19% of its industry peers.
• ACLS has a better Operating Margin (22.36%) than 74.29% of its industry peers.
• ACLS's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross 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.