Axcelis Technologies Inc (ACLS, Financial), a key player in the semiconductor industry, has experienced a notable fluctuation in its stock price recently. Over the past week, the stock has seen a decline of 13.98%, yet it has gained an impressive 13.33% over the last three months. Currently, the stock is fairly valued with a GF Value of $116.49, according to GuruFocus calculations. This valuation comes after a period three months ago when the stock was considered modestly undervalued.
Company Overview
Axcelis Technologies Inc operates within the dynamic semiconductors sector. The company is renowned for its design, manufacture, and service of ion implantation and other processing equipment crucial for semiconductor chip fabrication. Axcelis not only offers equipment but also provides comprehensive aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. The company enjoys a robust market presence across North America, Asia Pacific, and Europe, with the Asia Pacific region being a significant revenue contributor.
Examining Profitability
Axcelis Technologies boasts a high Profitability Rank of 9 out of 10. The company's operating margin stands at 24.00%, which is superior to 90.36% of 985 companies in the semiconductors industry. Furthermore, its Return on Equity (ROE) is an impressive 31.17%, outperforming 94.98% of its peers. The Return on Assets (ROA) at 20.88% and Return on Invested Capital (ROIC) at 36.43% also highlight the company's efficiency in utilizing its assets and capital, surpassing 97.49% and 96.19% of industry counterparts, respectively.
Growth Metrics
The company's Growth Rank is a solid 7 out of 10. Axcelis has demonstrated strong growth in revenue, with a 3-Year Revenue Growth Rate per Share of 34.80%, better than 89.42% of 926 companies in its industry. The 5-Year Revenue Growth Rate per Share also stands at a commendable 26.20%. In terms of earnings, the 3-Year EPS without NRI Growth Rate is 72.00%, and the 5-Year Rate is 59.70%, both metrics showcasing significant growth and outperforming a large majority of their industry peers.
Key Shareholders
PRIMECAP Management (Trades, Portfolio) is the top holder with 1,012,996 shares, representing 3.11% of the company. Following them, Jeremy Grantham (Trades, Portfolio) holds 275,406 shares, accounting for 0.85%, and Chuck Royce (Trades, Portfolio) owns 65,125 shares, making up 0.2% of the company.
Competitive Landscape
Axcelis Technologies competes with several firms in the semiconductors industry. Its closest competitors based on market capitalization include IPG Photonics Corp (IPGP, Financial) with a market cap of $3.6 billion, Camtek Ltd (CAMT, Financial) valued at $4.65 billion, and Kulicke & Soffa Industries Inc (KLIC, Financial) with a market cap of $2.58 billion.
Conclusion
Despite recent price volatility, Axcelis Technologies Inc demonstrates strong profitability and growth metrics within the competitive semiconductor industry. The company's solid financial health and strategic market positioning underscore its potential for sustained value creation, making it a noteworthy consideration for investors looking at long-term investments in the technology sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
