One-glance verdict
Overvalued
$9.22 our estimate vs market $55.06
Wall Street consensus: $91.60 (893.0% higher than our fair-value estimate)
497% above our estimate, beyond the bull case
Fundamentals snapshot
AXT, Inc.
AXTI · NMS · Technology · Semiconductor Equipment & Materials
Current price
$55.06
52-week range
$7.80 - $143.16
Market cap
$3.61B
Balance sheet
Healthy
-16.40x Concerning
Net cash $396.13M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 42.1% last year.
- Reward Returns 6.1% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 1/10 years.
- Risk Stock trades 849.2% above its 5-year average P/E.
What this company does
AXT, Inc.
AXT makes special semiconductor materials used in things like super-fast internet, 5G phones, and self-driving cars. Their money mostly comes from selling these high-tech wafers to other companies that build the final products. This matters because AXT's materials are critical for the growth of important technologies that many people rely on every day.
How the company got here
AXT, Inc., originally founded as American Xtal Technology, Inc. in 1986, has evolved into a key player in the semiconductor materials industry. The company officially changed its name to AXT, Inc. in July 2000, reflecting its growing focus on advanced semiconductor substrates. Headquartered in Fremont, California, AXT has built its reputation by developing and manufacturing specialized materials essential for cutting-edge electronic devices. Its journey has been marked by a consistent effort to innovate and supply critical components that power modern technology.
What it actually does
AXT designs, makes, and sells compound and single-element semiconductor substrates. Think of these as the ultra-pure, perfectly structured foundations upon which microchips and other advanced electronic components are built. These substrates are crucial for enabling the high performance required in everything from super-fast internet connections to sophisticated sensors in self-driving cars. AXT's materials are the invisible bedrock for many of the technologies we rely on daily.
Indium Phosphide (InP)
This business line focuses on producing indium phosphide substrates. These are vital for applications requiring very high-speed data transfer and light manipulation, such as in data centers, 5G networks, and fiber optic communications. They are also used in consumer devices, advanced sensors for robotics and autonomous vehicles (like lidar), and specialized imaging technologies. This segment is a significant contributor to AXT's revenue, powering the infrastructure for faster and more efficient communication and sensing.
Gallium Arsenide (GaAs)
AXT also manufactures gallium arsenide substrates, offered in both semi-insulating and semi-conducting forms. These materials are essential for a wide range of electronic components, including Wi-Fi and IoT devices, power amplifiers, and displays using micro-LED technology. They are also critical for lasers used in 3D sensing, data center communications, and even for specialized applications like night vision goggles and laser machining. This segment serves a broad array of markets, from consumer electronics to industrial applications.
Germanium (Ge)
This part of AXT's business produces germanium substrates. These are particularly important for multi-junction solar cells used in satellites, as well as for optical sensors and detectors. Germanium also finds use in terrestrial concentrated solar power systems and as a carrier wafer for LEDs. While perhaps a smaller slice of the overall business compared to other segments, it serves critical niche markets in space technology and renewable energy.
Other Materials and Components
Beyond its core semiconductor substrates, AXT also supplies highly purified gallium, boron trioxide, and specialized components like pyrolytic boron nitride (pBN) crucibles and insulating parts. These materials are often used in the manufacturing process of semiconductors and other high-temperature applications. This segment supports the broader semiconductor ecosystem by providing essential raw materials and manufacturing aids.
What management is betting on now
AXT's strategic focus is on expanding its presence in high-growth markets that demand advanced semiconductor materials. This includes doubling down on supplying substrates for 5G infrastructure, data center connectivity, and the rapidly growing fields of artificial intelligence and autonomous vehicles. Management is investing in research and development to enhance substrate performance and manufacturing capabilities. The goal is to solidify AXT's position as a critical supplier for the next generation of electronic technologies, driving future revenue growth.
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
$-6.36M
FY2024 Q4
$1.10M
FY2025 Q1
$-3.86M
FY2025 Q2
$-4.86M
FY2025 Q3
$-11.33M
FY2025 Q4
$1.26M
FY2026 Q1
$-13.06M
FY2026 Q2
$3.56M
Revenue
$47.59M
Net income
$11.13M
Diluted EPS
0.17
Operating cash flow
$10.78M
Free cash flow
$3.56M
Fetching…
Sources
Revenue
$26.92M
Net income
$-1.62M
Diluted EPS
-0.03
Operating cash flow
$-11.68M
Free cash flow
$-13.06M
Fetching…
Sources
Revenue
$23.04M
Net income
$-3.55M
Diluted EPS
-0.09
Operating cash flow
$4.29M
Free cash flow
$1.26M
Fetching…
Sources
Revenue
$27.95M
Net income
$-1.91M
Diluted EPS
-0.04
Operating cash flow
$-9.15M
Free cash flow
$-11.33M
Fetching…
Sources
Revenue
$17.97M
Net income
$-7.01M
Diluted EPS
-0.16
Operating cash flow
$-4.58M
Free cash flow
$-4.86M
Fetching…
Sources
Revenue
$19.36M
Net income
$-8.80M
Diluted EPS
-0.20
Operating cash flow
$-3.35M
Free cash flow
$-3.86M
Fetching…
Sources
Revenue
$25.11M
Net income
$-5.09M
Diluted EPS
-0.11
Operating cash flow
$1.27M
Free cash flow
$1.10M
Fetching…
Sources
Revenue
$23.64M
Net income
$-2.94M
Diluted EPS
-0.07
Operating cash flow
$-5.42M
Free cash flow
$-6.36M
Fetching…
Sources
Is it cheap or expensive?
Fair value $9.22 vs current price $55.06
Wall Street consensus is the average analyst price target: $91.60 (893.0% higher than our fair-value estimate).
Our most-likely fair value is $9.22 a share — about 83.2% below today's price of $55.06, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $396.1M - more cash than debt. Interest coverage -16.4x.
Net debt
$-396.13M
Interest coverage
-16.40x
AXT, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
AXTI
BASELINE
AXT, Inc.
Total debt $116.61M Interest coverage -16.40x This is the baseline the peer rows are being compared against.
Total debt $1.80B Interest coverage -1.82x Neither company has much profit cushion over interest right now.
Total debt $3.55B Interest coverage 4.74x This peer still has a real interest-payment cushion, while AXTI does not.
Total debt $5.14M Interest coverage -598.10x Neither company has much profit cushion over interest right now.
Total debt $4.67B Interest coverage 17.63x This peer still has a real interest-payment cushion, while AXTI does not.
What you should know
The case for and against AXTI
3 Rewards
1 Risk
Rewards
-
Revenue grew 42.1% last year.
-
Returns 6.1% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
-
Stock trades 849.2% above its 5-year average P/E.
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)
112.37x
Forward P/E
20.75x
P/B
3.86x
P/S
21.12x
EV/EBITDA
73.75x
PEG ratio
12.09x
Profitability
How much profit each dollar creates
Gross margin
44.0%
Operating margin
38.7%
Net margin
18.5%
ROE
6.1%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.12x
Current ratio
3.80x
Quick ratio
2.89x
Total debt
$116.61M
Total cash
$512.74M
Growth
How the business has been compounding
Revenue TTM
$125.51M
Revenue 5Y CAGR
-10.5%
EPS TTM
0.49
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-5.76M
Free CF TTM
$-18.78M
FCF margin
-15.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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