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Axcelis (ACLS)
:ACLS
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Axcelis Technologies
(NASDAQ:ACLS)75Outperform
Positive Factors
Financial Performance
Axcelis posted upside earnings, demonstrating strong financial performance despite market challenges.
Market Position
ACLS remains the market leader in SiC devices, benefiting from strong long-term demand in one of the key semiconductor megatrends of the decade.
Negative Factors
Guidance
The 1Q outlook fell well below Street expectations and is putting meaningful pressure on the stock.
Axcelis Technologies (ACLS) vs. S&P 500 (SPY)
Market Cap
$1.81B
Dividend YieldN/A
Average Volume (3M)738.14K
Price to Earnings (P/E)9.5
Beta (1Y)1.83
Revenue Growth-9.97%
EPS Growth-17.87%
CountryUS
Employees1,704
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)6.14
Shares Outstanding32,154,140
10 Day Avg. Volume671,968
30 Day Avg. Volume738,138
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.78
Price to Cash Flow (P/CF)35.40
P/FCF Ratio50.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$79.33Price Target Upside35.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Axcelis Technologies Business Overview & Revenue Model
Company DescriptionAxcelis Technologies, Inc. is a leading provider of innovative equipment and services to the semiconductor manufacturing industry. Positioned within the technology and industrial sectors, the company specializes in the design, manufacture, and servicing of ion implantation and other processing equipment used in the fabrication of semiconductor chips. Axcelis is known for its high-performance products that support the production of advanced semiconductor devices used in a wide array of applications, including consumer electronics, automotive, and telecommunications.
How the Company Makes MoneyAxcelis Technologies generates revenue primarily through the sale of its ion implantation equipment, which is essential for semiconductor manufacturing. The company's revenue model includes direct sales of new equipment to semiconductor manufacturers, as well as providing spare parts, upgrades, and maintenance services for existing machinery. Additionally, Axcelis offers customer training and support services as part of its comprehensive service offerings. Key revenue streams are driven by the demand for advanced semiconductor devices, which require sophisticated and precise manufacturing techniques that Axcelis' equipment facilitates. The company may also benefit from strategic partnerships and collaborations with leading semiconductor manufacturers, which can enhance its market presence and drive sales.
Axcelis Technologies Financial Statement Overview
Summary
Axcelis Technologies exhibits strong profitability, efficient operational management, and a robust balance sheet with effective cash flow generation. The company shows a slight revenue growth decline, but overall financial health is solid, supporting future opportunities.Income Statement
Axcelis Technologies shows strong profitability with a high gross profit margin and consistent net profit margin. However, there is a slight decline in revenue growth in the TTM (Trailing-Twelve-Months) compared to the previous year, which may be a concern for future growth trajectory. The EBIT and EBITDA margins indicate efficient operational management.85
Very Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The return on equity is impressive, reflecting effective use of shareholder funds. The equity ratio shows a strong equity position compared to total assets, enhancing stability.88
Very Positive
Cash Flow
Axcelis Technologies has a healthy operating cash flow to net income ratio, suggesting good cash generation relative to earnings. The free cash flow has shown growth over the years, although the most recent period indicates a slight dip, warranting close monitoring.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.02B | 1.13B | 920.00M | 662.43M | 474.56M | Gross Profit |
| 454.65M | 491.30M | 401.79M | 286.44M | 198.58M | EBIT |
| 210.79M | 265.80M | 212.36M | 127.33M | 58.04M | EBITDA |
| 251.54M | 297.01M | 222.07M | 136.08M | 71.04M | Net Income Common Stockholders |
| 200.99M | 246.26M | 183.08M | 98.65M | 49.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 571.34M | 506.15M | 432.17M | 294.92M | 203.48M | Total Assets |
| 1.35B | 1.28B | 1.01B | 753.24M | 624.62M | Total Debt |
| 43.67M | 45.19M | 46.41M | 47.39M | 48.15M | Net Debt |
| -79.84M | -122.11M | -139.18M | -247.53M | -155.33M | Total Liabilities |
| 335.99M | 417.08M | 346.38M | 214.28M | 143.02M | Stockholders Equity |
| 1.01B | 864.88M | 667.26M | 538.96M | 481.60M |
| Cash Flow | Free Cash Flow | |||
| 140.82M | 136.21M | 204.92M | 141.47M | 62.27M | Operating Cash Flow |
| 140.82M | 156.87M | 215.61M | 150.19M | 69.70M | Investing Cash Flow |
| -108.73M | -100.86M | -257.25M | -8.72M | -7.27M | Financing Cash Flow |
| -71.19M | -68.27M | -65.48M | -52.45M | -2.39M |
Axcelis Technologies Technical Analysis
Negative
58.54
Price Trends
66.74
Negative
74.88
Negative
96.70
Negative
Market Momentum
-3.11
Positive
40.53
Neutral
24.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLS, the sentiment is Negative. The current price of 58.54 is below the 20-day moving average (MA) of 61.29, below the 50-day MA of 66.74, and below the 200-day MA of 96.70, indicating a bearish trend. The MACD of -3.11 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACLS.
Axcelis Technologies Risk Analysis
Axcelis Technologies disclosed 24 risk factors in its most recent earnings report. Axcelis Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Axcelis Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $98.12B | 23.23 | 50.42% | 1.13% | 13.21% | 27.25% | |
80 Outperform | $276.98B | 34.01 | 48.13% | 0.81% | 2.53% | -3.33% | |
76 Outperform | $124.20B | 20.00 | 35.19% | 1.05% | 4.45% | -10.01% | |
75 Outperform | $1.81B | 9.53 | 21.41% | ― | -9.97% | -17.87% | |
70 Outperform | $17.34B | 32.29 | 20.29% | 0.45% | 5.52% | 16.59% | |
69 Neutral | $92.89B | 29.40 | 96.81% | 0.90% | 12.19% | 20.80% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
ACLS
Axcelis Technologies
58.54
-60.09
-50.65%
AMAT
Applied Materials
155.32
-55.51
-26.33%
ASML
ASML Holding
739.75
-300.21
-28.87%
KLAC
KLA
715.81
-1.05
-0.15%
LRCX
Lam Research
79.05
-19.11
-19.47%
TER
Teradyne
110.21
0.66
0.60%
Axcelis Technologies Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -13.38% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Axcelis Technologies had a strong end to 2024, exceeding expectations in revenue and receiving significant customer recognition. However, the company faces challenges in 2025 with expected revenue declines, particularly in China and the Silicon IGBT market, and potential impacts from export control restrictions.Highlights
Better Than Expected Q4 Performance
Axcelis Technologies reported Q4 2024 revenue of $252 million and earnings per share of $1.54, exceeding expectations due to strong demand for Customer Support and Improvements (CS&I) sales which offset declines in system sales.
Growth in Silicon Carbide Sales
System sales of Silicon Carbide grew approximately 6% year-over-year for the full year 2024, with expectations for long-term growth due to increased adoption in the EV industry and other applications.
Strong Recognition from Customers
In 2024, Axcelis received 22 customer awards for supplier excellence and other categories, a significant increase compared to 2023.
Solid Financial Position
The company exited 2024 with $571 million in cash, cash equivalents, and short-term investments on hand with no debt, providing a strong foundation for future investments.
Lowlights
Decline in Q1 2025 Revenue
Axcelis expects Q1 2025 revenue to decline to approximately $185 million, primarily due to lower systems revenue from China and seasonal declines in CS&I revenue.
Challenges in Silicon IGBT Market
Silicon IGBT system sales declined in the fourth quarter, and the market is expected to continue softening in 2025 as customers manage capacity and face slow industrial auto recovery.
General Mature Revenue Decline Anticipated
The company anticipates General Mature revenue to decline sequentially in Q1 2025 due to expected digestion of mature node capacity in China and slow recovery in auto and industrial markets.
Impact of New Export Control Restrictions
New U.S. government restrictions may impact revenue from China in 2025, with an estimated impact closer to the low end of the $20 million to $50 million range.
Company Guidance
In the call discussing Axcelis Technologies’ results for the fourth quarter and full year 2024, the company provided detailed guidance on several metrics. They reported fourth quarter revenues of $252 million, with earnings per diluted share at $1.54, exceeding expectations due to strong demand in CS&I sales. The company saw a 46% gross margin for the quarter, above their forecasted 42.5%, and a full-year gross margin of 44.7%, which marked a year-over-year increase of 120 basis points. Bookings for the fourth quarter were $84.5 million, with a year-ending backlog of $646 million. For 2025, Axcelis anticipates a year-over-year revenue decline, with first-quarter revenue projected at $185 million and gross margins at approximately 40%. They expect the second half of 2025 to show a slight improvement over the first half, driven by anticipated growth in memory, particularly DRAM, and continued resilience in Silicon Carbide shipments. The company also highlighted their strategic focus on long-term growth, emphasizing investments in R&D and geographic expansion into Japan.Axcelis Technologies Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Axcelis Technologies Faces Revenue Impact from New U.S. Regulations
Negative
Jan 10, 2025
Axcelis Technologies has announced that the new interim final rules by the U.S. Department of Commerce BIS, which add new companies to the U.S. Entity List and regulate semiconductor equipment exports to China, could reduce its total annual revenue by $20 million to $50 million in Fiscal Year 2025. The financial impact of these regulations is still under assessment and may change, highlighting potential challenges for the company’s operations and industry positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.