One-glance verdict
Within fair range
$88.88 our estimate vs market $108.35
Wall Street consensus: $161.00 (81.1% higher than our fair-value estimate)
22% above our estimate
Fundamentals snapshot
Axcelis Technologies, Inc.
ACLS · NMS · Technology · Semiconductor Equipment & Materials
Current price
$108.35
52-week range
$73.60 - $193.78
Market cap
$3.35B
Balance sheet
Healthy
22.24x Strong cushion
Net cash $332.41M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.2% last year.
- Reward Returns 8.9% on equity, ahead of 33% of its peers.
- Risk Stock trades 125.5% above its 5-year average P/E.
- Risk Operating margin compressed from 23.1% to 9.4% over 3 years.
What this company does
Axcelis Technologies, Inc.
Axcelis Technologies builds and sells the specialized, high-tech machines that companies use to manufacture semiconductor chips (the tiny electronic brains in everything from phones to cars). It makes money not only from new machine sales but also by providing spare parts, upgrades, and maintenance services for equipment already in use. This matters because the world's growing demand for more powerful electronics relies on the advanced chips that Axcelis's equipment helps create.
How the company got here
Founded in 1978 and spun out of Eaton Corporation in 2000, Axcelis Technologies has a long history in the semiconductor industry. The company decided to focus intensely on one specific, highly technical step in the chip-making process called ion implantation. This specialization became its key advantage, allowing it to develop deep expertise and industry-leading technology. Over the years, Axcelis has navigated the cyclical nature of the semiconductor market by concentrating on innovation within its niche. A major turning point was the development of its Purion platform, which is now the core of its product line and a standard for many chip manufacturers.
What it actually does
Think of making a computer chip like building a microscopic city on a tiny piece of silicon. Axcelis builds the highly precise machines that perform a crucial construction step called ion implantation. These machines shoot specific atoms (ions) into the silicon wafer to change its electrical properties, which is what creates the pathways and switches that make a chip work. Essentially, Axcelis provides a fundamental tool that chipmakers like Intel, Samsung, or TSMC need to fabricate the chips that power everything from your phone to your car.
Systems
This is the company's main business, centered around selling new ion implantation machines. These are not one-size-fits-all; Axcelis makes different types, like high-current and high-energy implanters, for creating different kinds of chips such as memory, sensors, or power devices. The core of this business is the 'Purion' product family, a versatile and modern platform that chip manufacturers buy to outfit their factories (often called 'fabs'). This segment generates the majority of the company's revenue and is driven by chipmakers expanding their production capacity or upgrading to new technology.
Customer Solutions & Innovation (CS&I)
This part of the business, also known as aftermarket services, focuses on supporting the Axcelis machines that are already installed in factories around the world. Instead of selling a new machine, this segment makes money by providing spare parts, performing maintenance, offering equipment upgrades, and training customer employees. This is a significant and growing business for Axcelis because it provides a more stable and recurring stream of revenue (income that is predictable and likely to continue in the future) compared to the more cyclical sales of new equipment. It accounts for a substantial portion of the company's total revenue, roughly between a fifth and a third in recent years.
What management is betting on now
Management's strategy is heavily focused on being the number one specialist in ion implantation. They are particularly betting on the growing demand for specialized chips, especially power devices used in electric vehicles and other electronics, which require advanced implantation techniques. A key priority is expanding their 'aftermarket' business, which provides services and upgrades to their large installed base of machines, creating a steady and reliable income stream. The company is also investing heavily in research and development (the process of creating new products and technologies) to ensure its Purion platform remains the industry standard and to expand its use in new applications like advanced logic and memory chips.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$41.85M
FY2024 Q4
$8.12M
FY2025 Q1
$34.84M
FY2025 Q2
$37.74M
FY2025 Q3
$43.34M
FY2025 Q4
$-8.90M
FY2026 Q1
$16.30M
FY2026 Q2
$14.82M
Revenue
$215.18M
Net income
$23.29M
Diluted EPS
0.75
Operating cash flow
$18.37M
Free cash flow
$14.82M
Fetching…
Sources
Revenue
$198.96M
Net income
$9.21M
Diluted EPS
0.30
Operating cash flow
$18.14M
Free cash flow
$16.30M
Fetching…
Sources
Revenue
$238.33M
Net income
$34.30M
Diluted EPS
1.11
Operating cash flow
$-6.57M
Free cash flow
$-8.90M
Fetching…
Sources
Revenue
$213.61M
Net income
$25.99M
Diluted EPS
0.83
Operating cash flow
$45.35M
Free cash flow
$43.34M
Fetching…
Sources
Revenue
$194.54M
Net income
$31.38M
Diluted EPS
0.98
Operating cash flow
$39.73M
Free cash flow
$37.74M
Fetching…
Sources
Revenue
$192.56M
Net income
$28.58M
Diluted EPS
0.88
Operating cash flow
$39.80M
Free cash flow
$34.84M
Fetching…
Sources
Revenue
$252.42M
Net income
$49.95M
Diluted EPS
1.54
Operating cash flow
$12.78M
Free cash flow
$8.12M
Fetching…
Sources
Revenue
$256.56M
Net income
$48.58M
Diluted EPS
1.49
Operating cash flow
$45.75M
Free cash flow
$41.85M
Fetching…
Sources
Is it cheap or expensive?
Fair value $88.88 vs current price $108.35
Wall Street consensus is the average analyst price target: $161.00 (81.1% higher than our fair-value estimate).
Our most-likely fair value is $88.88 a share — about 18.0% away from today's price of $108.35, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $332.4M - more cash than debt. Interest coverage 22.2x.
Net debt
$-332.41M
Interest coverage
22.24x
Axcelis Technologies, Inc.'s profit covers its interest bill about 22.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ACLS
BASELINE
Axcelis Technologies, Inc.
Total debt $69.81M Interest coverage 22.24x This is the baseline the peer rows are being compared against.
Total debt $261.19M Interest coverage 4.88x -78% vs ACLS Carries about 4.6x less debt cushion than ACLS.
Total debt $1.47B Interest coverage 4.33x -81% vs ACLS Carries about 5.1x less debt cushion than ACLS.
Total debt $29.91M Interest coverage 115.35x +419% vs ACLS Carries about 5.2x more debt cushion than ACLS.
Total debt $349.32M Interest coverage 15.73x -29% vs ACLS Carries about 1.4x less debt cushion than ACLS.
Total debt $38.12M Interest coverage -293.99x -100% vs ACLS This peer has almost no interest-payment cushion compared with ACLS.
What you should know
The case for and against ACLS
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.2% last year.
-
Returns 8.9% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 125.5% above its 5-year average P/E.
-
Operating margin compressed from 23.1% to 9.4% over 3 years.
-
Insider ownership is only 0.7% (peer median: 2.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
36.36x
Forward P/E
20.57x
P/B
3.14x
P/S
3.86x
EV/EBITDA
30.32x
PEG ratio
1.45x
Profitability
How much profit each dollar creates
Gross margin
43.0%
Operating margin
9.4%
Net margin
10.7%
ROE
8.9%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
4.90x
Quick ratio
2.78x
Total debt
$69.81M
Total cash
$402.22M
Growth
How the business has been compounding
Revenue TTM
$866.07M
Revenue 5Y CAGR
6.1%
EPS TTM
2.98
EPS 5Y CAGR
-11.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$75.30M
Free CF TTM
$107.01M
FCF margin
12.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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