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Axcelis Technologies (ACLS)
NASDAQ:ACLS
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Axcelis Technologies
(NASDAQ:ACLS)
Rating:82Outperform
Price Target:
$82.00
▲(26.02%Upside)
Positive Factors
Earnings
Axcelis’ net GAAP income of $0.88 per diluted share beat investor expectations by $0.50 per diluted share.
Financial Performance
Axcelis posted upside results driven by higher than anticipated margins and sales.
Operational Efficiency
Gross margins in the March quarter were favorably impacted by shipments of higher margin spares and deferred revenues.
Negative Factors
Future Guidance
Axcelis guided to lower margins, sales, and earnings in the June quarter and sees a flatish second half.
Market Conditions
The Si IGBT market broadly remains soft.
Market Exposure
Axcelis has little exposure to AI and advanced nodes that are in control of the semi sector while the bottom in power semis is still being debated.
Axcelis Technologies (ACLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.21B
Dividend YieldN/A
Average Volume (3M)638.50K
Price to Earnings (P/E)11.9
Beta (1Y)1.71
Revenue Growth-15.14%
EPS Growth-28.30%
CountryUS
Employees1,524
SectorTechnology
Sector Strength79
IndustrySemiconductors
Share Statistics
EPS (TTM)0.88
Shares Outstanding32,129,540
10 Day Avg. Volume752,184
30 Day Avg. Volume638,496
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)3.93
Price to Sales (P/S)0.00
P/FCF Ratio12.80
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit5.81
Enterprise Value/Ebitda2.55
Forecast
1Y Price Target
$68.67Price Target Upside5.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Axcelis Technologies Business Overview & Revenue Model
Company DescriptionAxcelis Technologies, Inc. is a leading provider in the semiconductor industry, specializing in the design, manufacture, and servicing of ion implantation and other processing equipment. The company's products are critical to the fabrication of semiconductor chips, serving various sectors including integrated device manufacturers and foundries. Axcelis is known for its innovative solutions that enhance the performance and efficiency of semiconductor production processes.
How the Company Makes MoneyAxcelis Technologies generates revenue primarily through the sale of its semiconductor processing equipment, particularly its ion implantation systems. These systems are essential for doping processes in semiconductor manufacturing. The company's revenue streams include equipment sales, aftermarket services such as maintenance and spare parts, and customer support. Axcelis also benefits from strategic partnerships with semiconductor manufacturers and maintains a competitive edge through continuous innovation and technological advancements. The company's earnings are influenced by global semiconductor demand, technological trends, and its ability to maintain long-term relationships with key clients in the semiconductor industry.
Axcelis Technologies Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 24.92%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance in terms of revenue, earnings, and gross margins, despite challenges in specific segments like silicon carbide, silicon IGBTs, and NAND. The company maintains a strong cash position and continues to invest in share repurchases and R&D, indicating confidence in future growth. However, there are concerns about declining shipments in certain areas and a decrease in revenue from China.Q1-2025 Updates
Positive Updates
Exceeding Revenue and Earnings Expectations
Axcelis Technologies reported first-quarter 2025 revenue of $193 million and earnings per diluted share of $0.88, both exceeding their outlook. Non-GAAP earnings per share were $1.04.
Strong Bookings
The company generated $110 million in bookings, with a book-to-bill ratio of 0.8x, marking the highest level since Q4 2023.
Robust Gross Margins
GAAP gross margins were 46.1%, exceeding the outlook of 40%, driven by lower warranty and installation costs and favorable mix. Non-GAAP gross margins were 46.4%.
Resilient Cash Position
Axcelis exited the quarter with $587 million in cash and no debt, and generated $35 million of free cash flow.
Continued Investment and Share Repurchase
The Board approved a $100 million increase in share repurchase authorization. The company repurchased $18 million of shares in Q1 and plans to continue at an elevated level.
Negative Updates
Silicon Carbide Shipments Decline
Shipments of silicon carbide applications declined sequentially, consistent with expectations due to softer end demand.
Muted Silicon IGBTs Revenues
Revenues from silicon IGBTs were muted due to cyclical softness in the auto end market and the impact of silicon carbide adoption.
NAND Market Weakness
Demand from NAND applications is expected to remain muted as customers focus on transitioning to higher layer accounts rather than wafer capacity additions.
Lower Revenue from China
China accounted for 37% of total system sales in Q1, down from 49% in the prior quarter. Revenue from China is expected to be down year-over-year.
Company Guidance
During Axcelis Technologies' first-quarter 2025 earnings call, the company reported revenue of $193 million, surpassing expectations with earnings per diluted share of $0.88 on a GAAP basis and $1.04 on a non-GAAP basis. The company saw $110 million in bookings, marking a book-to-bill ratio of 0.8x, the highest since Q4 2023. Axcelis also reported strong gross margins at 46.1% GAAP and 46.4% non-GAAP, attributed to lower warranty costs and favorable sales mix. Operating expenses were managed below expectations at $59.6 million GAAP, resulting in a 15.1% GAAP operating margin. Non-GAAP operating margins were 18.3%, and adjusted EBITDA was $39.5 million, reflecting a 20.5% margin. The company anticipates Q2 revenue of approximately $185 million and gross margins of around 42%, with continued focus on mitigating tariff impacts and maintaining operational resilience.Axcelis Technologies Financial Statement Overview
Summary
Axcelis Technologies exhibits strong financial health with impressive growth and profitability, supported by efficient operations. The balance sheet is robust with low leverage and high equity. Cash flows are stable and strong, indicating effective cash management.Income Statement
Axcelis Technologies has demonstrated strong revenue growth over the years, with a significant increase in total revenue from $474.56M in 2020 to $958.06M in TTM (Trailing-Twelve-Months). The gross profit margin for TTM is 44.6%, indicating efficient cost management. Net profit margin stands at an impressive 18.6%, showcasing robust profitability. EBIT and EBITDA margins are healthy at 19.1% and 21.6%, respectively. The consistent upward trajectory in earnings and margins suggests a strong competitive position in the semiconductor industry.90
Very Positive
Balance Sheet
The balance sheet reflects a solid financial structure, with a low debt-to-equity ratio of 0.042, indicating low leverage and financial risk. Return on equity (ROE) is strong at 17.3% for TTM, reflecting efficient use of equity capital. The equity ratio is 76.6%, showing a high proportion of equity financing, which enhances financial stability. Overall, the company maintains a strong balance sheet with ample liquidity and low debt levels.85
Very Positive
Cash Flow
Operating cash flow to net income ratio is 0.78, indicating robust cash generation relative to earnings. Free cash flow grew slightly from $128.64M in 2024 to $130.39M in TTM, reflecting stable cash flow generation. The free cash flow to net income ratio is 0.73, suggesting good cash conversion efficiency. The company's cash flow profile is solid, supporting ongoing operations and potential growth initiatives.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 958.06M | 1.02B | 1.13B | 920.00M | 662.43M | 474.56M | Gross Profit |
| 427.37M | 454.65M | 491.30M | 401.79M | 286.44M | 198.58M | EBIT |
| 183.41M | 210.79M | 265.80M | 212.36M | 127.33M | 58.04M | EBITDA |
| 206.70M | 251.54M | 297.01M | 222.07M | 136.08M | 71.04M | Net Income Common Stockholders |
| 177.98M | 200.99M | 246.26M | 183.08M | 98.65M | 49.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 587.06M | 571.34M | 506.15M | 432.17M | 294.92M | 203.48M | Total Assets |
| 1.34B | 1.35B | 1.28B | 1.01B | 753.24M | 624.62M | Total Debt |
| 43.33M | 43.67M | 45.19M | 46.41M | 47.39M | 48.15M | Net Debt |
| -140.63M | -79.84M | -122.11M | -139.18M | -247.53M | -155.33M | Total Liabilities |
| 313.38M | 335.99M | 417.08M | 346.38M | 214.28M | 143.02M | Stockholders Equity |
| 1.03B | 1.01B | 864.88M | 667.26M | 538.96M | 481.60M |
| Cash Flow | Free Cash Flow | ||||
| 130.39M | 128.64M | 136.21M | 204.92M | 141.47M | 62.27M | Operating Cash Flow |
| 138.39M | 140.82M | 156.87M | 215.61M | 150.19M | 69.70M | Investing Cash Flow |
| -12.57M | -108.73M | -100.86M | -257.25M | -8.72M | -7.27M | Financing Cash Flow |
| -73.25M | -71.19M | -68.27M | -65.48M | -52.45M | -2.39M |
Axcelis Technologies Technical Analysis
Positive
65.07
Price Trends
54.98
Positive
57.86
Positive
72.12
Negative
Market Momentum
3.08
Negative
57.87
Neutral
64.10
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 65.07 is above the 20-day moving average (MA) of 61.77, above the 50-day MA of 54.98, and below the 200-day MA of 72.12, indicating a neutral trend. The MACD of 3.08 indicates Negative momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACLS.
Axcelis Technologies Risk Analysis
Axcelis Technologies disclosed 21 risk factors in its most recent earnings report. Axcelis Technologies reported the most risks in the "Ability to Sell" 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.21B | 11.92 | 18.45% | ― | -15.14% | -28.30% | |
76 Outperform | $1.65B | 16.45 | 12.21% | ― | 26.21% | 17.34% | |
74 Outperform | $1.28B | 19.20 | 8.68% | ― | 3.30% | ― | |
69 Neutral | $1.15B | 9.55 | 11.23% | ― | -3.19% | -11.06% | |
66 Neutral | $2.65B | 48.61 | 5.74% | ― | 15.33% | -47.04% | |
62 Neutral | $11.97B | 10.08 | -7.46% | 2.96% | 7.37% | -8.22% | |
58 Neutral | $1.84B | 93.94 | 2.29% | 2.41% | -6.17% | ― |
* Technology Sector Average
Performance Comparison
ACLS
Axcelis Technologies
65.07
-72.95
-52.85%
FORM
Formfactor
33.63
-24.91
-42.55%
KLIC
Kulicke & Soffa
33.96
-12.82
-27.40%
PLAB
Photronics
18.36
-6.78
-26.97%
VECO
Veeco
20.43
-26.75
-56.70%
ACMR
ACM Research
24.37
0.68
2.87%
Axcelis Technologies Corporate Events
Executive/Board ChangesShareholder Meetings
Axcelis Technologies Approves Equity Plan Amendment at Annual Meeting
Neutral
May 8, 2025
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.
Financial Disclosures
Axcelis Technologies Releases Financial Reconciliations Report
Positive
Apr 21, 2025
On April 21, 2025, Axcelis Technologies released its historical GAAP to Non-GAAP financial reconciliations for fiscal years 2020-2024. The data highlights the company’s financial performance, showing significant growth in revenue and net income over the years, with a notable increase in both GAAP and Non-GAAP earnings per share. This financial transparency may positively impact stakeholders’ confidence and the company’s market position.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.