AIXTRON (AIXA) AI Stock Analysis

• Market Cap: €1.85B
• Dividend Yield: 0.91%
• Average Volume (3M): 618.58K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.33
• Revenue Growth: -6.50%
• EPS Growth: -34.18%
• Country: DE
• Employees: 1,186
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 0.04
• Shares Outstanding: 113,456,120
• 10 Day Avg. Volume: 725,466
• 30 Day Avg. Volume: 618,582
• PEG Ratio: -0.99
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.22
• 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: €16.20
• Price Target Upside: -1.40% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: €18.00 ▲(9.56%Upside)

AIXTRON's overall score is driven by its strong financial performance and fair valuation, despite some concerns over recent profitability declines and cash flow volatility. The technical analysis suggests bullish momentum, although caution is advised due to overbought indicators.

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, together with its subsidiaries, provides deposition equipment to the semiconductor industry in Asia, Europe, and the Americas. It develops, produces, sells, maintains, and installs equipment for the deposition of semiconductor materials; and provides consulting and training, customer support, and peripheral equipment and services, as well as sells spare parts and services. The company supplies deposition equipment for volume production, as well as equipment for research and development, and pre-series production. Its technology solutions are used to build components for electronic and optoelectronic applications that are used in laser, LED, display technologies, optical and wireless data transmission, SiC and GaN power electronics, optical and electronic storage devices, computing, and signaling and lighting technology, as well as other applications. AIXTRON SE was founded in 1983 and is headquartered in Herzogenrath, Germany.

How the Company Makes Money

AIXTRON generates revenue through the sale of its advanced deposition systems, which are used in the production of compound semiconductors. These systems are critical for manufacturing LEDs, lasers, and other optoelectronic devices. The company also earns from service contracts, spare parts, and upgrades for its equipment. Significant partnerships with semiconductor manufacturers and research institutions further bolster its earnings, as these collaborations often lead to the development of cutting-edge technology solutions that cater to emerging market needs. Additionally, AIXTRON's focus on R&D and its ability to adapt to industry trends in energy efficiency and next-generation communication technologies contribute significantly to its revenue streams.

AIXTRON Financial Statement Overview

Summary

AIXTRON shows strong profitability and low leverage, reflected in high scores for income statement and balance sheet. However, cash flow volatility and recent declines in profitability are concerns.

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	627.38M	633.16M	629.88M	463.17M	428.95M	269.25M
Gross Profit	252.82M	262.47M	279.03M	195.27M	181.48M	108.29M
EBITDA	140.33M	146.85M	169.50M	114.37M	108.23M	45.07M
Net Income	100.51M	106.28M	145.19M	100.44M	95.66M	34.88M
Balance Sheet
Total Assets	983.38M	1.02B	1.03B	902.58M	740.70M	590.43M
Cash, Cash Equivalents and Short-Term Investments	93.28M	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	132.70M	170.34M	252.37M	239.26M	148.53M	94.05M
Stockholders Equity	850.51M	847.87M	777.37M	663.11M	591.99M	495.39M
Cash Flow
Free Cash Flow	-8.66M	-72.47M	-109.93M	7.48M	-30.96M	-48.45M
Operating Cash Flow	69.34M	26.23M	-47.29M	37.14M	-13.50M	-39.16M
Investing Cash Flow	-39.37M	-15.04M	78.12M	-48.27M	-17.49M	-41.48M
Financing Cash Flow	-46.68M	-46.47M	-35.88M	-34.59M	-8.59M	-904.00K

AIXTRON Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AIXA, the sentiment is Positive. The current price of 16.43 is above the 20-day moving average (MA) of 14.61, above the 50-day MA of 13.32, and above the 200-day MA of 13.36, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 73.46 is Negative, neither overbought nor oversold. The STOCH value of 95.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:AIXA.

AIXTRON Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIXA	70 Outperform	€1.85B	18.41	12.25%	0.91%	-6.50%	-34.18%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
0N9K		€1.57B	12.85	23.28%	1.09%	―	―
0J9O		€2.36M	―	-39.23%	―	―	―
0R8P		€1.22B	31.46	2.02%	0.49%	―	―
0Q3C		€830.76M	14.71	21.21%	0.69%	―	―
CTNK	86 Outperform	€114.28M	4.40	26.96%	―	57.50%	38.81%