Axcelis Technologies Inc (NASDAQ: ACLS)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0001113232
Market Cap 3.09 Bn
P/B 3.02
P/E 22.71
P/S 3.62
ROIC (Qtr) 11.15
Div Yield % 0.00
Rev 1y % (Qtr) -16.74
Total Debt (Qtr) 42.67 Mn
Debt/Equity (Qtr) 0.04

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 137.65M provides robust 3.23x coverage of total debt 42.67M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 187.50M provide 124.59x coverage of short-term debt 1.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 137.65M provides exceptional 25.16x coverage of interest expenses 5.47M, showing strong debt service capability.
  • Strong tangible asset base of 1.35B provides 31.68x coverage of total debt 42.67M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 124.03M exceeds capital expenditure of 13.62M by 9.11x, indicating strong organic growth funding capability.

Bear case

  • Investment activities of 46.35M provide weak support for R&D spending of 106.49M, which is 0.44x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 137.65M provides insufficient coverage of deferred revenue obligations of 128.92M, which is 1.07x, raising concerns about future service delivery capabilities.
  • Long-term investments of 150.84M represent a high 1.48x of fixed assets 101.92M, indicating potential overexposure to financial assets versus operational capabilities.
  • Free cash flow of 124.03M represents just -87.84x of debt issuance (1.41M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 488.77M provide limited buffer against comprehensive income items of (1.61M), which is -303.77x, indicating elevated exposure to market risks.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 545.55 Bn 81.60 25.80 3.18 Bn
2 LRCX Lam Research Corp 270.12 Bn 366.11 84.92 4.48 Bn
3 AMAT Applied Materials Inc /De 260.74 Bn 38.58 9.28 6.56 Bn
4 KLAC Kla Corp 207.40 Bn 64.64 19.12 5.89 Bn
5 TER Teradyne, Inc 47.70 Bn 421.67 28.58 0.27 Bn
6 ENTG Entegris Inc 15.99 Bn 199.19 14.79 3.91 Bn
7 NVMI Nova Ltd. 12.80 Bn 52.23 15.01 0.88 Bn
8 AMKR Amkor Technology, Inc. 11.99 Bn 21.67 2.07 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.19 3.68
EV to Cash from Ops. EV/CFO 21.47 27.99
EV to Debt EV to Debt 69.25 2,137.46
EV to EBIT EV/EBIT 18.20 47.14
EV to EBITDA EV/EBITDA 19.05 30.10
EV to Free Cash Flow [EV/FCF] EV/FCF 23.82 68.49
EV to Market Cap EV to Market Cap 0.96 0.93
EV to Revenue EV/Rev 3.46 55.25
Price to Book Value [P/B] P/B 3.02 11.74
Price to Earnings [P/E] P/E 22.71 58.42
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.93
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 667.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.62
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.52
Interest Coverage Int. cover (Qtr) 29.67 86.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 22.96 -57.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 56.16 21.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -37.96 -69.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -38.07 -68.67
EBIT Growth (1y) % EBIT 1y % (Qtr) -38.59 -68.41
EBT Growth (1y) % EBT 1y % (Qtr) -39.44 -76.59
EPS Growth (1y) % EPS 1y % (Qtr) -37.50 -164.09
FCF Growth (1y) % FCF 1y % (Qtr) -29.50 70.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -19.98 43.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.63 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.94 1.52
Current Ratio Curr Ratio (Qtr) 4.95 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.30
Interest Cover Ratio Int Coverage (Qtr) 29.67 86.73
Times Interest Earned Times Interest Earned (Qtr) 29.67 86.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.10 -1,802.55
EBIT Margin % EBIT Margin % (Qtr) 19.03 -1,926.38
EBT Margin % EBT Margin % (Qtr) 18.39 -1,932.94
Gross Margin % Gross Margin % (Qtr) 44.70 22.58
Net Profit Margin % Net Margin % (Qtr) 15.90 -2,101.05