Axcelis Technologies (ACLS) AI Stock Analysis

• Market Cap: $2.47B
• Dividend Yield: N/A
• Average Volume (3M): 527.70K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.76
• Revenue Growth: -19.38%
• EPS Growth: -33.03%
• Country: US
• Employees: 1,524
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 1.13
• Shares Outstanding: 31,418,860
• 10 Day Avg. Volume: 454,582
• 30 Day Avg. Volume: 527,696
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 8.52
• 1Y Price Target: $85.50
• Price Target Upside: 5.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $92.00 ▲(13.18% Upside)

Axcelis Technologies' strong financial performance and technical momentum are the primary drivers of its high score. The company's robust balance sheet and strategic market leadership in high-energy ion implantation further bolster its position. However, valuation concerns and market softness in certain segments slightly temper the overall outlook.

Positive Factors

Earnings

Axcelis reported a solid beat-and-raise quarter, with both results and guidance exceeding consensus estimates on the top and bottom lines.

Financial Performance

Results for 2Q25 were aided by higher than anticipated gross margins and a lower tax rate, positively impacting earnings.

Market Demand

Continued firm demand in China for SiC applications in the Power segment was noted.

Negative Factors

Market Conditions

The Memory market witnessed a sequential decline in shipments.

Market Exposure

Axcelis has little exposure to AI and advanced nodes that are in control in the semi sector.

Revenue Outlook

Management sees that China revenue will be flat in the second half in dollar terms, implying a significant decline year-over-year.

Axcelis Technologies Business Overview & Revenue Model

Company Description

Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.

How the Company Makes Money

Axcelis Technologies generates revenue primarily through the sale of its semiconductor manufacturing equipment, particularly ion implantation systems. The company offers a range of products, including high-energy and low-energy ion implanters, which are essential for various semiconductor fabrication processes. In addition to equipment sales, Axcelis also earns money from aftermarket services, including maintenance, spare parts, and upgrades, which provide a recurring revenue stream. Strategic partnerships with leading semiconductor manufacturers and technology collaborations further enhance its market position and contribute to its earnings. The company's ability to innovate and adapt to the evolving needs of the semiconductor market is a critical factor in its revenue generation.

Axcelis Technologies Financial Statement Overview

Summary

Axcelis Technologies presents a strong financial position with solid profitability, efficient leverage management, and robust cash flow generation. The recent decline in revenue growth is a concern, but the company continues to maintain healthy margins and a strong balance sheet.

Income Statement

Axcelis Technologies shows strong profitability with a consistent gross profit margin around 44-45% over the years. However, the recent TTM data indicates a decline in revenue growth rate by 6.47%, which is a concern. Despite this, the company maintains a healthy net profit margin of 17.69% in TTM, showcasing efficient cost management. The EBIT and EBITDA margins have slightly decreased in TTM compared to previous years, indicating some pressure on operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating prudent financial leverage management. The return on equity, although slightly decreased in TTM to 15.70%, remains strong, reflecting effective use of shareholder funds. The equity ratio is stable, suggesting a solid financial structure with a good proportion of assets financed by equity.

Cash Flow

Axcelis Technologies demonstrates robust cash flow management with a high free cash flow to net income ratio of 95.66% in TTM. The free cash flow growth rate has rebounded positively in TTM after a decline in the previous year, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is slightly below 1, suggesting room for improvement in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	896.09M	1.02B	1.13B	920.00M	662.43M	474.56M
Gross Profit	402.30M	454.65M	491.30M	401.79M	286.44M	198.58M
EBITDA	204.59M	251.54M	297.01M	222.07M	136.08M	71.04M
Net Income	158.49M	200.99M	246.26M	183.08M	98.65M	49.98M
Balance Sheet
Total Assets	1.32B	1.35B	1.28B	1.01B	753.24M	624.62M
Cash, Cash Equivalents and Short-Term Investments	549.84M	571.34M	506.15M	432.17M	294.92M	203.48M
Total Debt	43.00M	73.47M	75.89M	58.71M	56.47M	52.67M
Total Liabilities	301.10M	335.99M	417.08M	346.38M	214.28M	143.02M
Stockholders Equity	1.02B	1.01B	864.88M	667.26M	538.96M	481.60M
Cash Flow
Free Cash Flow	130.07M	128.64M	136.21M	204.92M	141.47M	62.27M
Operating Cash Flow	138.05M	140.82M	156.87M	215.61M	150.19M	69.70M
Investing Cash Flow	-11.58M	-108.73M	-100.86M	-257.25M	-8.72M	-7.27M
Financing Cash Flow	-97.63M	-71.19M	-68.27M	-65.48M	-52.45M	-2.39M

Axcelis Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLS, the sentiment is Positive. The current price of 81.29 is above the 20-day moving average (MA) of 77.49, above the 50-day MA of 73.74, and above the 200-day MA of 66.16, indicating a bullish trend. The MACD of 2.32 indicates Positive momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 24.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACLS.

Axcelis Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	78 Outperform	$2.47B	16.62	16.19%	―	-19.38%	-33.03%
ACMR	76 Outperform	$1.64B	18.52	12.32%	―	17.53%	27.74%
PLAB	74 Outperform	$1.26B	11.49	11.23%	―	-3.19%	-11.06%
VECO	70 Neutral	$1.44B	24.91	7.83%	―	-0.19%	-28.72%
FORM	62 Neutral	$2.15B	51.82	4.53%	―	8.30%	-63.69%
KLIC	62 Neutral	$1.90B	460.51	0.66%	2.16%	-9.54%	―
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%

Axcelis Technologies Corporate Events

Axcelis Technologies Approves Equity Plan Amendment at Annual Meeting

At the 2025 annual meeting held on May 7, Axcelis Technologies‘ stockholders approved an amendment to the 2012 Equity Incentive Plan, increasing the number of shares reserved for future issuance by 3,000,000. Additionally, the board fixed its size at eight members and appointed Jorge Titinger as the Non-Executive Chairperson. The meeting also ratified the appointment of Ernst & Young LLP as independent auditors and approved the executive compensation for 2024.