AIXTRON (AIXA) AI Stock Analysis

• Market Cap: €1.49B
• Dividend Yield: 1.13%
• Average Volume (3M): 585.36K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.23
• Revenue Growth: 0.59%
• EPS Growth: -11.99%
• Country: DE
• Employees: 1,186
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 0.18
• Shares Outstanding: 113,456,120
• 10 Day Avg. Volume: 343,283
• 30 Day Avg. Volume: 585,358
• PEG Ratio: -0.60
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 2.72
• P/FCF Ratio: -23.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €15.45
• Price Target Upside: 19.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 61 Neutral
• Price Target: €14.00 ▲(7.86% Upside)

AIXTRON's overall score is influenced by strong financial performance and reasonable valuation, but is weighed down by negative technical indicators. The company's solid equity position and consistent revenue growth are positives, but recent declines in profitability and cash flow volatility, along with bearish technical signals, present challenges.

Positive Factors

Growth Outlook

Management highlighted the attractive medium-term growth outlook for GaN across applications such as AI power delivery and EV on-board chargers.

Order Intake

Q3 could bring a relief on good order intake.

Negative Factors

Margin Guidance Skepticism

Skepticism remains on FY24 margin guidance, which appears stretched and requires a significant increase versus recent years.

Revenue Decline

FY25 revenue could decline by 5-10% year-over-year due to lack of signs for a near-term SiC/EV recovery, ongoing delays in GaN's broad adoption, and a slowdown in LED shipments.

Stock Performance

The stock has been the worst performer in our coverage universe in 2024 so far and now has fallen well below our price target.

AIXTRON Business Overview & Revenue Model

Company Description

AIXTRON SE is a leading provider of deposition equipment to the semiconductor industry, specializing in the production of advanced materials for electronic and optoelectronic applications. The company focuses on sectors such as semiconductor manufacturing, photonics, and power electronics, offering a range of core products that include chemical vapor deposition (CVD) systems and metal-organic chemical vapor deposition (MOCVD) systems. AIXTRON's innovative technologies enable the growth of high-quality thin films for applications in LEDs, lasers, and solar cells.

How the Company Makes Money

AIXTRON generates revenue primarily through the sale of its deposition equipment and systems, which are utilized in the manufacturing of high-performance semiconductors. The company's revenue model includes direct sales of equipment, which often comes with installation and maintenance services. Additionally, AIXTRON earns money through the sale of spare parts and upgrades for existing systems. Strategic partnerships with key players in the semiconductor and photonics markets also bolster its revenue, as these collaborations can lead to joint development projects and increased demand for AIXTRON's technology. Furthermore, the company benefits from research and development investments that enhance its product offerings and position in the market, driving long-term growth.

AIXTRON Financial Statement Overview

Summary

AIXTRON demonstrates strong gross profit margins and consistent revenue growth, although recent declines in profitability and cash flow volatility pose concerns. The company maintains a robust equity position with low leverage, but the decline in cash reserves suggests a need for improved liquidity management.

Income Statement

AIXTRON demonstrates a strong gross profit margin and consistent revenue growth over the years. The net profit margin indicates solid profitability, although it slightly decreased in the most recent year. The EBIT and EBITDA margins are healthy, suggesting efficient operations. However, recent profitability metrics show some decline, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reflects a robust equity position with a low debt-to-equity ratio, indicating low leverage and financial stability. The equity ratio is strong, showing a healthy proportion of assets funded by equity. However, the decline in cash and cash equivalents over recent years may need monitoring to ensure liquidity remains sufficient.

Cash Flow

Free cash flow has been volatile, with negative figures in recent years, indicating potential challenges in cash generation. The operating cash flow to net income ratio is low, reflecting challenges in converting earnings to cash. Free cash flow to net income has also been negative, suggesting a need for improved cash flow management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	633.01M	633.16M	629.88M	463.17M	428.95M	269.25M
Gross Profit	259.44M	262.47M	279.03M	195.27M	181.48M	108.29M
EBITDA	151.39M	146.85M	169.50M	114.37M	108.23M	45.07M
Net Income	108.60M	106.28M	145.19M	100.44M	95.66M	34.88M
Balance Sheet
Total Assets	973.69M	1.02B	1.03B	902.58M	740.70M	590.43M
Cash, Cash Equivalents and Short-Term Investments	114.80M	64.60M	181.68M	325.16M	352.49M	249.68M
Total Debt	0.00	5.02M	5.44M	7.96M	4.03M	2.98M
Total Liabilities	124.63M	170.34M	252.37M	239.26M	148.53M	94.05M
Stockholders Equity	848.89M	847.87M	777.37M	663.11M	591.99M	495.39M
Cash Flow
Free Cash Flow	55.63M	-72.47M	-109.93M	7.48M	-30.96M	-48.45M
Operating Cash Flow	98.78M	26.23M	-47.29M	37.14M	-13.50M	-39.16M
Investing Cash Flow	-81.54M	-15.04M	78.12M	-48.27M	-17.49M	-41.48M
Financing Cash Flow	-18.99M	-46.47M	-35.88M	-34.59M	-8.59M	-904.00K

AIXTRON Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AIXA, the sentiment is Negative. The current price of 12.98 is below the 20-day moving average (MA) of 13.54, below the 50-day MA of 14.75, and below the 200-day MA of 13.32, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 32.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:AIXA.

AIXTRON Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
AIXA	61 Neutral	€1.49B	13.64	13.52%	1.13%	0.59%	-11.99%
0N9K	―	€1.45B	11.59	23.45%	―	―	―
0J9O	―	€1.83M	―	-39.23%	―	―	―
0R8P	―	€1.14B	38.90	1.51%	―	―	―
0Q3C	―	€514.59M	9.15	22.01%	1.10%	―	―
CTNK	78 Outperform	€103.70M	4.16	26.96%	―	57.50%	38.81%