Axcelis Technologies, Inc. Net Income dropped on 63.9% while EBITDA Margin increased slightly on 2.0 pp from 12.9% to 14.9%
02/06/2019 • About Axcelis Technologies, Inc. (
$ACLS) • By InTwits
Axcelis Technologies, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Axcelis Technologies, Inc. is a fast growth stock: 2018 revenue growth was 7.8%, 5 year revenue CAGR was 17.7% at 2018 ROIC 15.7%
- EBITDA Margin is quite volatile: 14.9% in 2018, 12.9% in 2017, 7.8% in 2016, 8.5% in 2015, -3.0% in 2014
- Axcelis Technologies, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has highly profitable business model: ROIC is 15.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Axcelis Technologies, Inc.'s Revenue increased on 7.8%. Revenue growth showed slowdown in 18Q4 - it was -9.2% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.5 pp from 8.0% to -5.6% in 2018. EBITDA Margin stuck to a growing trend at 4.0 pp per annum in 2014-2018.
Gross Margin increased on 4.0 pp from 36.6% to 40.6% in 2018. Gross Margin stuck to a growing trend at 1.5 pp per annum in the last 5 years. SG&A as a % of Revenue increased slightly on 0.87 pp from 14.5% to 15.3% in 2018.
Net Income margin dropped on 20.6 pp from 30.9% to 10.4% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 Axcelis Technologies, Inc. had CAPEX/Revenue of 1.1%. Axcelis Technologies, Inc. showed almost no change in CAPEX/Revenue from 2015 to 2018. For the last three years the average CAPEX/Revenue was 1.3%. During 2014-2018 CAPEX as a % of Revenue topped in 2017 at 1.8%.
Return on investment
The company operates at good ROIC (15.7%) and ROE (12.0%). ROIC decreased slightly on 1.5 pp from 17.2% to 15.7% in 2018. ROE dropped on 33.7 pp from 45.7% to 12.0% in 2018.
Leverage (Debt)
The company has no debt. Cash surged on 33.4%.
Valuation and dividends
The company's trades at EV/EBITDA 8.2x and P/E 15.6x.
Management team
The company's CEO is Mary G Puma. Mary G Puma is a founder and has 17 years tenure with the company. Kevin J Brewer is a Axcelis Technologies, Inc.'s CFO. Kevin J Brewer has spent 5 years at the company.
Financial and operational results
FY ended 12/31/2018
Axcelis Technologies, Inc. ($ACLS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 203.1 | 301.5 | 267.0 | 410.6 | 442.6 | 7.8% |
| Gross Profit | 70.2 | 101.7 | 99.6 | 150.2 | 179.6 | 19.6% |
| SG&A | 44.7 | 48.4 | 48.3 | 59.3 | 67.8 | 14.3% |
| EBITDA | -6.1 | 25.6 | 20.9 | 52.8 | 65.7 | 24.4% |
| Net Income | -11.3 | 14.7 | 11.0 | 127.0 | 45.9 | -63.9% |
Balance Sheet
|
|---|
| Cash | 30.8 | 78.9 | 70.8 | 133.4 | 178.0 | 33.4% |
| Short Term Debt | 14.5 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.9 | 1.8 | 2.5 | 7.3 | 4.7 | -35.3% |
Ratios
|
|---|
| Revenue growth | 3.8% | 48.5% | -11.4% | 53.8% | 7.8% | |
| EBITDA growth | -36.4% | -521.4% | -18.4% | 153.1% | 24.4% | |
|
|---|
| Gross Margin | 34.6% | 33.7% | 37.3% | 36.6% | 40.6% | 4.0% |
| EBITDA Margin | -3.0% | 8.5% | 7.8% | 12.9% | 14.9% | 2.0% |
| SG&A, % of revenue | 22.0% | 16.0% | 18.1% | 14.5% | 15.3% | 0.9% |
| Net Income Margin | -5.5% | 4.9% | 4.1% | 30.9% | 10.4% | -20.6% |
| CAPEX, % of revenue | 0.4% | 0.6% | 0.9% | 1.8% | 1.1% | -0.7% |
|
|---|
| ROIC | -5.7% | 11.1% | 8.5% | 17.2% | 15.7% | -1.5% |
| ROE | -6.5% | 8.2% | 5.6% | 45.7% | 12.0% | -33.7% |
| Net Debt/EBITDA | | -3.1x | -3.4x | -2.5x | -2.7x | -0.2x |
Axcelis Technologies, Inc. ($ACLS) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 122 | 119 | 95 | 106 | | 40.6% | 16.1% | -8.7% | -9.2% |
| EBITDA | 20 | 21 | 12 | 13 | | 67.8% | 49.4% | -20.2% | 8.9% |
| Net Income | 14 | 15 | 9 | 8 | | 46.4% | 5.3% | -25.4% | -90.8% |
Balance Sheet
|
|---|
| Cash | 141 | 147 | 149 | 178 | | 103.0% | 35.7% | 30.6% | 33.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 48 | 48 | 48 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 38.6% | 41.1% | 41.8% | 41.2% | | -1.4% | 3.1% | 3.8% | 9.7% |
| EBITDA Margin | 16.3% | 17.3% | 12.7% | 12.4% | | 2.6% | 3.8% | -1.8% | 2.1% |
| Net Income Margin | 11.4% | 12.3% | 9.3% | 8.0% | | 0.4% | -1.3% | -2.1% | -70.8% |
Peers in Semiconductor Equipment
Below we provide Axcelis Technologies, Inc. benchmarking against other companies in Semiconductor Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Atomera Incorporated ($ATOM) | | | | | 123.6% |
| ACM Research, Inc. ($ACMR) | | | -12.3% | 33.4% | 104.5% |
| SCI Engineered Materials Inc ($SCIA) | | -13.0% | -32.1% | 24.4% | 67.0% |
| Aehr Test Systems ($AEHR) | | -49.1% | 44.7% | 30.3% | 56.4% |
| SolarEdge Technologies, Inc. ($SEDG) | | 144.0% | 50.7% | 23.9% | 54.4% |
| |
|---|
| Median (37 companies) | | -2.0% | 7.8% | 24.2% | 15.5% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | | 48.5% | -11.4% | 53.8% | 7.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | 99.5% | 99.8% | 99.8% | 98.3% | 96.7% |
| KLA-Tencor Corporation ($KLAC) | 57.9% | 56.8% | 61.0% | 63.0% | 64.1% |
| Teradyne, Inc. ($TER) | 53.3% | 55.8% | 54.7% | 57.2% | 58.1% |
| Nova Measuring Instruments Ltd. ($NVMI) | 52.7% | 51.9% | 45.9% | 59.1% | 57.8% |
| Nanometrics Incorporated ($NANO) | 47.2% | 47.9% | 51.6% | 52.9% | 56.7% |
| |
|---|
| Median (38 companies) | 34.5% | 38.9% | 40.0% | 44.0% | 40.9% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | 34.6% | 33.7% | 37.3% | 36.6% | 40.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 29.2% | 26.4% | 34.4% | 38.3% | 39.6% |
| DAQO New Energy Corp. ($DQ) | 32.9% | 31.6% | 43.3% | 49.1% | 36.1% |
| Xperi Corporation ($XPER) | 66.7% | 67.5% | 47.6% | 23.4% | 34.3% |
| Lam Research Corporation ($LRCX) | 21.1% | 20.3% | 23.2% | 27.6% | 32.0% |
| Cabot Microelectronics Corporation ($CCMP) | 21.6% | 22.6% | 23.4% | 27.2% | 31.5% |
| |
|---|
| Median (37 companies) | 7.0% | 10.3% | 12.1% | 16.2% | 16.6% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | -3.0% | 8.5% | 7.8% | 12.9% | 14.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Rubicon Technology, Inc. ($RBCN) | 15.0% | 4.0% | 3.6% | 0.0% | 58.8% |
| DAQO New Energy Corp. ($DQ) | 42.2% | 44.7% | 29.5% | 19.8% | 47.4% |
| AXT Inc ($AXTI) | 2.4% | 5.4% | 3.4% | 21.6% | 39.6% |
| STR Holdings Inc ($STRI) | 7.9% | 8.1% | 1.6% | 9.0% | 36.6% |
| Photronics, Inc. ($PLAB) | 20.0% | 19.8% | 10.4% | 20.4% | 17.3% |
| |
|---|
| Median (37 companies) | 2.3% | 2.9% | 2.6% | 3.2% | 3.0% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | 0.4% | 0.6% | 0.9% | 1.8% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 17.9% | 16.5% | 27.2% | 34.0% | 39.9% |
| Lam Research Corporation ($LRCX) | 10.7% | 10.9% | 11.8% | 18.7% | 33.9% |
| Versum Materials, Inc. ($VSM) | | 26.2% | 32.4% | 30.0% | 32.1% |
| Advanced Energy Industries, Inc. ($AEIS) | 8.8% | 30.2% | 41.2% | 45.7% | 31.3% |
| SolarEdge Technologies, Inc. ($SEDG) | -815.6% | 33.6% | 31.2% | 26.5% | 28.6% |
| |
|---|
| Median (39 companies) | 3.5% | 5.2% | 6.9% | 12.2% | 11.2% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | -5.7% | 11.1% | 8.5% | 17.2% | 15.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | -0.3x | -0.1x | 4.2x | 5.0x | 2.6x |
| Ultra Clean Holdings, Inc. ($UCTT) | -1.2x | 1.5x | 0.4x | -0.2x | 2.4x |
| Ichor Holdings ($ICHR) | 3.1x | 1.7x | -0.4x | 2.0x | 1.8x |
| Versum Materials, Inc. ($VSM) | -0.2x | -0.1x | 2.7x | 2.1x | 1.4x |
| DAQO New Energy Corp. ($DQ) | 4.6x | 4.3x | 2.3x | 0.9x | 1.2x |
| |
|---|
| Median (31 companies) | -1.2x | -1.0x | -1.2x | -0.7x | -1.0x |
|---|
| Axcelis Technologies, Inc. ($ACLS) | | -3.1x | -3.4x | -2.5x | -2.7x |
