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Axcelis (ACLS)
:ACLS
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Axcelis Technologies
(NASDAQ:ACLS)
67Neutral
Positive Factors
Earnings
Axcelis posted upside earnings.
Growth Initiatives
New growth initiatives, including penetration in the Japanese market and share gains in Advanced Logic, are gaining momentum.
Market Growth
General mature sales improved, led by investments in China.
Negative Factors
Bookings
Bookings were soft, with $84.5 million in 4Q24 bookings corresponding to a book-to-bill of just 0.33.
Earnings Guidance
The 1Q outlook fell well below Street expectations and is putting meaningful pressure on the stock.
Market Conditions
End demand continues to weaken across every major end market, with general mature node and power devices undergoing severe customer inventory corrections, particularly in China.
Axcelis Technologies (ACLS) vs. S&P 500 (SPY)
Market Cap
$1.58B
Dividend YieldN/A
Average Volume (3M)715.00K
Price to Earnings (P/E)8.0
Beta (1Y)1.76
Revenue Growth-9.97%
EPS Growth-17.87%
CountryUS
Employees1,524
SectorTechnology
Sector Strength65
IndustrySemiconductors
Share Statistics
EPS (TTM)6.14
Shares Outstanding32,180,817
10 Day Avg. Volume555,603
30 Day Avg. Volume714,998
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.12
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.90
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$68.67Price Target Upside39.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Axcelis Technologies Business Overview & Revenue Model
Company DescriptionAxcelis 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 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
Neutral
49.11
Price Trends
52.88
Negative
61.39
Negative
80.84
Negative
Market Momentum
-1.15
Negative
49.65
Neutral
74.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLS, the sentiment is Neutral. The current price of 49.11 is above the 20-day moving average (MA) of 46.48, below the 50-day MA of 52.88, and below the 200-day MA of 80.84, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.17B | 7.81 | 13.70% | ― | -3.85% | 5.95% | |
75 Outperform | $1.23B | 12.79 | 12.40% | ― | 40.23% | 29.40% | |
70 Neutral | $1.08B | 15.21 | 10.43% | ― | 7.63% | ― | |
67 Neutral | $1.58B | 8.00 | 21.41% | ― | -9.97% | -17.87% | |
63 Neutral | $2.23B | 32.65 | 7.50% | ― | 15.16% | -15.16% | |
59 Neutral | $10.75B | 10.37 | -6.64% | 3.00% | 7.30% | -12.02% | |
50 Neutral | $1.72B | 272.13 | 0.31% | 2.51% | -4.92% | -85.39% |
* Technology Sector Average
Performance Comparison
ACLS
Axcelis Technologies
49.11
-62.34
-55.94%
FORM
Formfactor
28.97
-25.03
-46.35%
KLIC
Kulicke & Soffa
32.22
-13.90
-30.14%
PLAB
Photronics
18.42
-10.36
-36.00%
VECO
Veeco
18.86
-17.51
-48.14%
ACMR
ACM Research
18.59
-8.41
-31.15%
Axcelis Technologies Earnings Call Summary
Earnings Call Date:Feb 10, 2025
(Q4-2024)
| % Change Since: -27.33%|
Next Earnings Date:May 06, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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
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.
Spark’s Take on ACLS Stock
According to Spark, TipRanks’ AI Analyst, ACLS is a Outperform.
Axcelis Technologies demonstrates strong financial health and profitability, contributing positively to the overall score. Despite the positive financial performance, technical analysis indicates bearish market momentum, which could signal further declines. The valuation is attractive due to a low P/E ratio, but the lack of dividends may deter some investors. The recent earnings call provided a balanced outlook with strong past performance but cautious future guidance due to external market challenges.
To see Spark’s full report on ACLS stock, click here.
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.