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For those who appreciate growth without the sticker shock, NASDAQ:ACLS is worth considering.

By Mill Chart

Last update: Apr 30, 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.

Analyzing Growth Metrics

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 8 out of 10:

  • ACLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.08%, which is quite impressive.
  • ACLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.65% yearly.
  • The Revenue has grown by 22.88% in the past year. This is a very strong growth!
  • 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.

How do we evaluate the Valuation for 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 6 for valuation:

  • 89.62% of the companies in the same industry are more expensive than ACLS, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ACLS to the average of the S&P500 Index (25.02), we can say ACLS is valued slightly cheaper.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ACLS indicates a rather cheap valuation: ACLS is cheaper than 88.68% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, ACLS is valued a bit cheaper.
  • Based on the Enterprise Value to EBITDA ratio, ACLS is valued cheaper than 93.40% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ACLS is valued cheaply inside the industry as 83.96% of the companies are valued more expensively.
  • ACLS has an outstanding profitability rating, which may justify a higher PE ratio.

Health Examination 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:

  • ACLS has an Altman-Z score of 7.58. This indicates that ACLS is financially healthy and has little risk of bankruptcy at the moment.
  • ACLS has a Altman-Z score of 7.58. This is in the better half of the industry: ACLS outperforms 72.64% of its industry peers.
  • The Debt to FCF ratio of ACLS is 0.33, which is an excellent value as it means it would take ACLS, only 0.33 years of fcf income to pay off all of its debts.
  • ACLS's Debt to FCF ratio of 0.33 is amongst the best of the industry. ACLS outperforms 82.08% of its industry peers.
  • A Debt/Equity ratio of 0.05 indicates that ACLS is not too dependend on debt financing.
  • The Debt to Equity ratio of ACLS (0.05) is better than 63.21% of its industry peers.
  • A Current Ratio of 3.79 indicates that ACLS has no problem at all paying its short term obligations.
  • ACLS has a Current ratio of 3.79. This is in the better half of the industry: ACLS outperforms 63.21% of its industry peers.
  • ACLS has a Quick Ratio of 2.71. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis 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:

  • The Return On Assets of ACLS (19.21%) is better than 92.45% of its industry peers.
  • Looking at the Return On Equity, with a value of 28.47%, ACLS belongs to the top of the industry, outperforming 87.74% of the companies in the same industry.
  • ACLS has a Return On Invested Capital of 23.70%. This is amongst the best in the industry. ACLS outperforms 95.28% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ACLS is significantly above the industry average of 10.78%.
  • The 3 year average ROIC (22.37%) for ACLS is below the current ROIC(23.70%), indicating increased profibility in the last year.
  • With a decent Profit Margin value of 21.78%, ACLS is doing good in the industry, outperforming 79.25% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ACLS has grown nicely.
  • ACLS has a better Operating Margin (23.51%) than 78.30% of its industry peers.
  • ACLS's Operating Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

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.

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AXCELIS TECHNOLOGIES INC

NASDAQ:ACLS (6/14/2024, 7:00:00 PM)

After market: 139 +0.27 (+0.19%)

138.73

-2.43 (-1.72%)

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