Investors should take notice of AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS)—it offers a great deal for the fundamentals it presents.

Last update: Mar 20, 2025

AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS) has caught the attention of our stock screener as a great value stock. ACLS excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Unpacking ACLS's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. ACLS scores a 7 out of 10:

A Price/Earnings ratio of 9.33 indicates a reasonable valuation of ACLS.
Compared to the rest of the industry, the Price/Earnings ratio of ACLS indicates a rather cheap valuation: ACLS is cheaper than 97.22% of the companies listed in the same industry.
ACLS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.90.
Based on the Price/Forward Earnings ratio, ACLS is valued a bit cheaper than 63.89% of the companies in the same industry.
ACLS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACLS is cheaper than 95.37% of the companies in the same industry.
94.44% of the companies in the same industry are more expensive than ACLS, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of ACLS may justify a higher PE ratio.
A more expensive valuation may be justified as ACLS's earnings are expected to grow with 24.02% in the coming years.

Looking at the Profitability

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. ACLS was assigned a score of 8 for profitability:

ACLS has a better Return On Assets (14.90%) than 86.11% of its industry peers.
ACLS's Return On Equity of 19.85% is amongst the best of the industry. ACLS outperforms 85.19% of its industry peers.
With an excellent Return On Invested Capital value of 16.22%, ACLS belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
ACLS had an Average Return On Invested Capital over the past 3 years of 21.34%. This is significantly above the industry average of 11.36%.
The 3 year average ROIC (21.34%) for ACLS is well above the current ROIC(16.22%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 19.75%, ACLS is in the better half of the industry, outperforming 78.70% of the companies in the same industry.
ACLS's Profit Margin has improved in the last couple of years.
ACLS has a Operating Margin of 20.71%. This is in the better half of the industry: ACLS outperforms 79.63% of its industry peers.
In the last couple of years the Operating Margin of ACLS has grown nicely.

Health Analysis for 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. ACLS scores a 9 out of 10:

ACLS has an Altman-Z score of 5.87. This indicates that ACLS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.87, ACLS is doing good in the industry, outperforming 64.81% of the companies in the same industry.
The Debt to FCF ratio of ACLS is 0.34, which is an excellent value as it means it would take ACLS, only 0.34 years of fcf income to pay off all of its debts.
ACLS's Debt to FCF ratio of 0.34 is amongst the best of the industry. ACLS outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that ACLS is not too dependend on debt financing.
A Current Ratio of 5.41 indicates that ACLS has no problem at all paying its short term obligations.
ACLS has a Current ratio of 5.41. This is amongst the best in the industry. ACLS outperforms 81.48% of its industry peers.
ACLS has a Quick Ratio of 4.05. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.
ACLS has a Quick ratio of 4.05. This is in the better half of the industry: ACLS outperforms 74.07% of its industry peers.

Exploring ACLS's Growth

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. ACLS has achieved a 5 out of 10:

The Earnings Per Share has been growing by 64.54% on average over the past years. This is a very strong growth
ACLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.30% yearly.
Based on estimates for the next years, ACLS will show a very strong growth in Earnings Per Share. The EPS will grow by 24.02% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ACLS

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.