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

Last update: Feb 2, 2024

Discover AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS), an undervalued growth gem identified by our stock screener. NASDAQ:ACLS is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

A Closer Look at Growth for NASDAQ:ACLS

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ACLS was assigned a score of 8 for growth:

The Earnings Per Share has grown by an impressive 45.63% over the past year.
The Earnings Per Share has been growing by 30.01% on average over the past years. This is a very strong growth
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 16.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.56% on average over the next years. This is quite good.

Valuation Insights: NASDAQ:ACLS

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ACLS has received a 6 out of 10:

Based on the Price/Earnings ratio, ACLS is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
ACLS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.18, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACLS indicates a somewhat cheap valuation: ACLS is cheaper than 79.05% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ACLS to the average of the S&P500 Index (21.43), we can say ACLS is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, ACLS is valued a bit cheaper than 79.05% 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 80.00% of the companies in the same industry.
The 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.
A more expensive valuation may be justified as ACLS's earnings are expected to grow with 16.18% in the coming years.

Health Analysis 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:

An Altman-Z score of 9.04 indicates that ACLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACLS (9.04) is better than 74.29% of its industry peers.
ACLS has a debt to FCF ratio of 0.23. This is a very positive value and a sign of high solvency as it would only need 0.23 years to pay back of all of its debts.
The Debt to FCF ratio of ACLS (0.23) is better 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 63.81% 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.

Analyzing Profitability Metrics

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:

ACLS has a better Return On Assets (19.32%) than 88.57% of its industry peers.
With an excellent Return On Equity value of 28.99%, ACLS belongs to the best of the industry, outperforming 84.76% of the companies in the same industry.
ACLS has a better Return On Invested Capital (22.11%) than 91.43% of its industry peers.
ACLS had an Average Return On Invested Capital over the past 3 years of 17.01%. This is significantly above the industry average of 12.00%.
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.
With a decent Profit Margin value of 21.37%, ACLS is doing good in the industry, outperforming 75.24% of the companies in the same industry.
ACLS has a Operating Margin of 22.36%. This is in the better half of the industry: ACLS outperforms 74.29% of its industry peers.
ACLS's Operating Margin has improved in the last couple of years.
ACLS's Gross 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.

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.