Axcelis Technologies (ACLS) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 610.41K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.88
• Revenue Growth: -20.69%
• EPS Growth: -37.67%
• Country: US
• Employees: 1,524
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.21
• Shares Outstanding: 30,999,132
• 10 Day Avg. Volume: 523,178
• 30 Day Avg. Volume: 610,408
• PEG Ratio: -0.63
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 17.68
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.16
• Enterprise Value/Gross Profit: 7.07
• Enterprise Value/Ebitda: 15.10
• 1Y Price Target: $96.80
• Price Target Upside: 13.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.13
• Revenue Forecast (FY): $786.93M

• Rating: 78 Outperform
• Price Target: $104.00 ▲(21.48% Upside)

Axcelis Technologies scores well due to strong financial performance and bullish technical indicators. The strategic merger with Veeco and positive earnings surprises bolster the outlook. However, valuation concerns and mixed earnings call sentiment slightly temper the overall score.

Positive Factors

Merger with Veeco

The merger with Veeco is a strategic move that enhances Axcelis's market position and R&D capabilities, potentially driving long-term growth and competitive advantage in the semiconductor industry.

Strong Balance Sheet

A strong balance sheet with low leverage provides Axcelis with financial stability and flexibility to invest in growth opportunities, supporting long-term business sustainability.

Silicon Carbide Market Growth

Growing demand for Silicon Carbide applications presents a significant opportunity for Axcelis to expand its market share and revenue, leveraging its expertise in advanced semiconductor technologies.

Negative Factors

Decline in Bookings and China Revenue

A decline in bookings and reduced revenue from China could signal challenges in maintaining growth momentum and market penetration, potentially impacting future revenue streams.

Lower Gross Margin

Lower gross margins indicate potential pricing pressures or inefficiencies, which could affect profitability if not addressed, impacting long-term financial performance.

Challenges in Power and General Mature Segments

Challenges in mature segments suggest potential difficulties in sustaining growth in established markets, necessitating strategic adjustments to capture new opportunities.

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 equipment and related services. Key revenue streams include the sale of ion implantation systems, which are sold to semiconductor manufacturers for use in production facilities. Additionally, the company earns revenue from the sale of spare parts and consumables, as well as from service contracts that provide maintenance and support for its equipment. Significant partnerships with major semiconductor manufacturers also contribute to its earnings, as these relationships can lead to long-term contracts and repeat business. Moreover, the growing demand for advanced semiconductor technologies in various sectors, including consumer electronics, automotive, and telecommunications, drives the company's revenue growth.

Axcelis Technologies Financial Statement Overview

Summary

Axcelis Technologies demonstrates strong profitability and a solid balance sheet with low leverage, positioning it well in the semiconductor industry. Despite a recent decline in revenue and free cash flow, the company maintains healthy margins and effective capital management, indicating resilience and potential for future growth.

Income Statement

Axcelis Technologies shows strong profitability with a consistent gross profit margin around 44-45% and a net profit margin above 17% in the TTM. However, the company experienced a revenue decline of 4.79% in the TTM, indicating potential challenges in maintaining growth momentum. EBIT and EBITDA margins remain healthy, reflecting efficient cost management.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.042, indicating minimal leverage and financial risk. Return on equity is strong at 15.7% in the TTM, showcasing effective use of shareholder funds. The equity ratio is solid, reflecting a stable capital structure.

Cash Flow

Cash flow metrics are stable, with a high free cash flow to net income ratio of 0.94, indicating strong cash conversion. However, free cash flow growth is negative at -3.09% in the TTM, suggesting potential cash flow challenges. The operating cash flow to net income ratio is healthy, supporting operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	853.13M	1.02B	1.13B	920.00M	662.43M	474.56M
Gross Profit	381.14M	454.65M	491.30M	401.79M	286.44M	198.58M
EBITDA	178.46M	251.54M	297.01M	222.07M	136.08M	71.04M
Net Income	135.90M	200.99M	246.26M	183.08M	98.65M	49.98M
Balance Sheet
Total Assets	1.35B	1.35B	1.28B	1.01B	753.24M	624.62M
Cash, Cash Equivalents and Short-Term Investments	449.56M	571.34M	506.15M	432.17M	294.92M	203.48M
Total Debt	42.67M	43.67M	45.19M	46.41M	47.39M	48.15M
Total Liabilities	331.80M	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	124.03M	128.64M	136.21M	204.92M	141.47M	62.27M
Operating Cash Flow	137.65M	140.82M	156.87M	215.61M	150.19M	69.70M
Investing Cash Flow	46.35M	-108.73M	-100.86M	-257.25M	-8.72M	-7.27M
Financing Cash Flow	-114.42M	-71.19M	-68.27M	-65.48M	-52.45M	-2.39M

Axcelis Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 85.61 is above the 20-day moving average (MA) of 83.61, above the 50-day MA of 83.51, and above the 200-day MA of 71.51, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.27 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	$2.76B	20.24	13.62%	―	-20.69%	-37.67%
SIMO	72 Outperform	$2.98B	30.18	11.88%	2.27%	-2.26%	9.74%
DIOD	70 Outperform	$2.40B	37.41	3.47%	―	10.45%	4.37%
FORM	68 Neutral	$4.30B	105.56	4.16%	―	2.29%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
POWI	61 Neutral	$2.02B	116.18	2.53%	2.30%	10.50%	-52.00%
IPGP	58 Neutral	$3.48B	128.34	1.22%	―	-7.49%	―

Axcelis Technologies Corporate Events

Axcelis Technologies Announces Merger with Veeco Instruments

On September 30, 2025, Axcelis Technologies entered into a merger agreement with Veeco Instruments, aiming to create a leading semiconductor equipment company. This merger is expected to impact the companies’ market positioning and operations, with potential benefits including synergies and growth opportunities, although it is subject to regulatory approvals and other conditions.

Axcelis Technologies Announces Merger with Veeco Instruments

On September 30, 2025, Axcelis Technologies and Veeco Instruments entered into a merger agreement, with Axcelis acquiring Veeco to form a leading semiconductor equipment company. The merger, expected to close in 2026, aims to diversify the technology portfolio, expand market opportunities, and achieve cost synergies, with Axcelis shareholders owning approximately 58% of the combined entity. The merger is anticipated to enhance R&D capabilities and be accretive to non-GAAP earnings per share within the first year post-closing, benefiting stakeholders with a stronger market position and growth potential.