Axcelis Technologies, Inc. Net Income jumped on 193% and EBITDA Margin increased on 4.7 pp from 10.8% to 15.4%
02/10/2021 • About Axcelis Technologies, Inc. (
$ACLS) • By InTwits
Axcelis Technologies, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Axcelis Technologies, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 3.2%
- CAPEX is quite volatile: $7m in 2020, $12m in 2019, $5m in 2018, $7m in 2017, $3m in 2016
- The company has business model with average profitability: ROIC is 11.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 38.4%. Revenue growth showed slowdown in 20Q4 - it was 13.4% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 10.7% to 7.2% in 2020.
Gross Margin showed almost no change in 2020. Gross Margin grew at 1.5 pp per annum in the last 5 years. SG&A as a % of Revenue decreased on 2.7 pp from 19.2% to 16.6% in 2020.
Net Income margin increased on 5.6 pp from 5.0% to 10.5% in 2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.6% in 2020. CAPEX/Revenue showed almost no change from 2017 to 2020. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at low ROIC (11.5%) and ROE (11.1%). ROIC increased on 6.0 pp from 5.5% to 11.5% in 2020. ROE increased on 7.0 pp from 4.1% to 11.1% in 2020.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is 0.7x. Debt decreased on 2.9% while cash surged on 45.5%.
Axcelis Technologies, Inc. has no short term refinancing risk: cash is higher than short term debt (6,112.3%).
Valuation and dividends
Axcelis Technologies, Inc.'s trades at EV/EBITDA 15.8x and P/E 26.1x.
Management team
The company's CEO Mary G Puma has spent 19 years with the company. The company's CFO is Kevin J Brewer. Kevin J Brewer has 7 years tenure at the company.
Financial and operational results
FY ended 12/31/2020
Axcelis Technologies, Inc. ($ACLS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 267.0 | 410.6 | 442.6 | 343.0 | 474.6 | 38.4% |
| Gross Profit | 99.6 | 150.2 | 179.6 | 144.2 | 198.6 | 37.8% |
| SG&A | 48.3 | 59.3 | 67.8 | 66.0 | 78.7 | 19.2% |
| EBITDA | 20.9 | 52.8 | 65.7 | 36.9 | 73.1 | 98.3% |
| Net Income | 11.0 | 127.0 | 45.9 | 17.0 | 50.0 | 193.4% |
Balance Sheet
|
|---|
| Cash | 70.8 | 133.4 | 178.0 | 139.9 | 203.5 | 45.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 3.5 | 3.3 | -6.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 50.7 | 49.3 | -2.7% |
Cash flow
|
|---|
| Capex | 2.5 | 7.3 | 4.7 | 12.0 | 7.4 | -37.9% |
Ratios
|
|---|
| Revenue growth | -11.4% | 53.8% | 7.8% | -22.5% | 38.4% | |
| EBITDA growth | -18.4% | 153.1% | 24.4% | -43.9% | 98.3% | |
|
|---|
| Gross Margin | 37.3% | 36.6% | 40.6% | 42.0% | 41.8% | -0.2% |
| EBITDA Margin | 7.8% | 12.9% | 14.9% | 10.8% | 15.4% | 4.7% |
| SG&A, % of revenue | 18.1% | 14.5% | 15.3% | 19.2% | 16.6% | -2.7% |
| Net Income Margin | 4.1% | 30.9% | 10.4% | 5.0% | 10.5% | 5.6% |
| CAPEX, % of revenue | 0.9% | 1.8% | 1.1% | 3.5% | 1.6% | -1.9% |
|
|---|
| ROIC | 8.5% | 17.2% | 15.7% | 5.5% | 11.5% | 6.0% |
| ROE | 5.6% | 45.7% | 12.0% | 4.1% | 11.1% | 7.0% |
| Net Debt/EBITDA | -3.4x | -2.5x | -2.7x | -2.3x | -2.1x | 0.3x |
Axcelis Technologies, Inc. ($ACLS) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 119 | 123 | 110 | 122 | | 30.1% | 65.5% | 59.0% | 13.4% |
| EBITDA | 17 | 20 | 18 | 18 | | 73.5% | 287.6% | 250.6% | 8.0% |
| Net Income | 11 | 13 | 11 | 15 | | 85.1% | 2,292.4% | 1,432.0% | 51.1% |
Balance Sheet
|
|---|
| Cash | 175 | 190 | 212 | 203 | | 7.1% | 39.6% | 36.5% | 45.5% |
| Short Term Debt | 4 | 4 | 3 | 3 | | 4.4% | 4.2% | -3.9% | -6.0% |
| Long Term Debt | 50 | 50 | 50 | 49 | | -3.9% | -3.2% | -3.2% | -2.7% |
Ratios
|
|---|
| Gross Margin | 38.3% | 42.2% | 43.6% | 43.4% | | -2.7% | -0.5% | -0.4% | 2.2% |
| EBITDA Margin | 14.5% | 16.4% | 16.0% | 14.8% | | 3.6% | 9.4% | 8.8% | -0.7% |
| Net Income Margin | 9.4% | 10.8% | 9.8% | 12.0% | | 2.8% | 10.1% | 8.8% | 3.0% |
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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | - | 44.0% | 8.7% | -31.0% | 218.5% |
| DAQO New Energy Corp. ($DQ) | - | 41.1% | -6.7% | 16.0% | 93.0% |
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 15.5% | -0.2% | 16.3% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | - | 53.8% | 7.8% | -22.5% | 38.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
| Teradyne, Inc. ($TER) | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% |
| Nova Measuring Instruments Ltd. ($NVMI) | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% |
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 40.0% | 44.0% | 40.9% | 40.3% | 42.7% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | 37.3% | 36.6% | 40.6% | 42.0% | 41.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% |
| DAQO New Energy Corp. ($DQ) | 43.3% | 49.1% | 36.1% | 27.1% | 38.0% |
| Teradyne, Inc. ($TER) | 3.4% | 29.6% | 27.9% | 30.3% | 33.8% |
| Cabot Microelectronics Corporation ($CCMP) | 23.4% | 27.2% | 31.5% | 20.1% | 31.6% |
| Entegris, Inc. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.2% | 16.6% | 12.9% | 15.9% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | 7.8% | 12.9% | 14.9% | 10.8% | 15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| DAQO New Energy Corp. ($DQ) | 29.5% | 19.8% | 47.4% | 79.7% | 17.5% |
| Photronics, Inc. ($PLAB) | 10.4% | 20.4% | 17.3% | 32.4% | 11.6% |
| Cabot Microelectronics Corporation ($CCMP) | 4.1% | 4.2% | 3.6% | 5.4% | 11.3% |
| Amkor Technology, Inc. ($AMKR) | 16.5% | 13.1% | 12.7% | 11.7% | 10.9% |
| ACM Research, Inc. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 3.2% | 3.0% | 3.2% | 3.9% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | 0.9% | 1.8% | 1.1% | 3.5% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Teradyne, Inc. ($TER) | -2.9% | 23.8% | 22.6% | 29.2% | 40.3% |
| DAQO New Energy Corp. ($DQ) | 12.7% | 23.2% | 12.2% | 5.6% | 18.5% |
| Entegris, Inc. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 6.9% | 12.2% | 11.2% | 5.6% | 10.2% |
|---|
| Axcelis Technologies, Inc. ($ACLS) | 8.5% | 17.2% | 15.7% | 5.5% | 11.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
| Xperi Corporation ($XPER) | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x |
| Cabot Microelectronics Corporation ($CCMP) | -1.3x | -1.8x | -1.9x | 3.6x | 2.0x |
| Entegris, Inc. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
| Axcelis Technologies, Inc. ($ACLS) | -3.4x | -2.5x | -2.7x | -2.3x | -2.1x |
