AXT Inc revenue jumped on 14.5%
02/18/2021 • About AXT Inc (
$AXTI) • By InTwits
AXT Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2020 vs. 6.7% in FY2019 vs. 13.9% in FY2016
- The company has potentially unprofitable business model: ROIC is 1.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
AXT Inc's Revenue jumped on 14.5%. Revenue growth showed acceleration in FY20Q4 - it increased 46.8% YoY.
Gross Margin increased slightly on 1.9 pp from 29.8% to 31.7% in FY2020. SG&A as a % of Revenue decreased on 3.1 pp from 23.2% to 20.1% in FY2020. During the last 5 years SG&A as a % of Revenue topped in FY2019 at 23.2%.
Net Income margin increased on 6.5 pp from -3.1% to 3.4% in FY2020.
Return on investment
The company operates at low ROIC (1.7%) and ROE (1.8%). ROIC increased slightly on 1.8 pp from -0.088% to 1.7% in FY2020. ROE increased on 3.3 pp from -1.5% to 1.8% in FY2020.
Leverage (Debt)
Debt surged on 59.7% while cash surged on 170%.
AXT Inc has no short term refinancing risk: cash is higher than short term debt (697.4%).
Management team
Morris S Young is a AXT Inc's CEO. Morris S Young has spent 16 years with the company. The company's CFO is Gary L Fischer. Gary L Fischer has 6 years tenure at the company.
Financial and operational results
AXT Inc ($AXTI) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 81.3 | 98.7 | 102.4 | 83.3 | 95.4 | 14.5% |
| Gross Profit | 26.4 | 34.5 | 37.0 | 24.8 | 30.3 | 22.0% |
| SG&A | 13.9 | 17.0 | 19.0 | 19.3 | 19.2 | -0.5% |
| EBITDA | 11.3 | 17.1 | 17.0 | 5.6 | | |
| Net Income | 5.6 | 10.1 | 9.7 | -2.6 | 3.2 | |
Balance Sheet
|
|---|
| Cash | 36.2 | 44.4 | 16.5 | 26.9 | 72.6 | 170.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 6.1 | 10.4 | 71.6% |
| Long Term Debt | 0.6 | 0.0 | 0.0 | 2.7 | 3.6 | 32.9% |
Cash flow
|
|---|
| Capex | 2.7 | 21.4 | 40.5 | 21.8 | | |
Ratios
|
|---|
| Revenue growth | 5.0% | 21.3% | 3.8% | -18.7% | 14.5% | |
| EBITDA growth | 1,797.5% | 51.1% | -0.3% | -67.2% | | |
|
|---|
| Gross Margin | 32.4% | 34.9% | 36.2% | 29.8% | 31.7% | 1.9% |
| EBITDA Margin | 13.9% | 17.3% | 16.6% | 6.7% | |
| SG&A, % of revenue | 17.1% | 17.2% | 18.6% | 23.2% | 20.1% | -3.1% |
| Net Income Margin | 6.9% | 10.3% | 9.4% | -3.1% | 3.4% | 6.5% |
| CAPEX, % of revenue | 3.4% | 21.6% | 39.6% | 26.2% | | |
|
|---|
| ROIC | 4.6% | 7.7% | 6.3% | -0.1% | 1.7% | 1.8% |
| ROE | 4.3% | 6.6% | 5.3% | -1.5% | 1.8% | 3.3% |
| Net Debt/EBITDA | -3.2x | -2.6x | -1.0x | -3.3x | |
AXT Inc ($AXTI) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 21 | 22 | 25 | 27 | | 2.5% | -10.7% | 28.4% | 46.8% |
| Net Income | -0 | 0 | 1 | 2 | | - | -75.1% | - | - |
Balance Sheet
|
|---|
| Cash | 20 | 27 | 22 | 73 | | -4.7% | -7.7% | -19.6% | 170.0% |
| Short Term Debt | 6 | 6 | 4 | 10 | | 5,352.5% | 5,246.3% | -35.6% | 71.6% |
| Long Term Debt | 3 | 2 | 2 | 4 | | 174.5% | 174.3% | -12.0% | 32.9% |
Ratios
|
|---|
| Gross Margin | 26.6% | 30.6% | 34.6% | 33.9% | | -6.5% | -3.7% | 5.6% | 12.9% |
| Net Income Margin | -0.9% | 1.6% | 3.9% | 7.6% | | 4.6% | -4.2% | 8.4% | 18.8% |
Peers in Semiconductor Equipment
Below we provide AXT 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. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.7% | 15.5% | -0.2% | 16.9% |
|---|
| AXT Inc ($AXTI) | - | 21.3% | 3.8% | -18.7% | 14.5% |
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. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 40.0% | 44.0% | 41.2% | 40.5% | 42.7% |
|---|
| AXT Inc ($AXTI) | 32.4% | 34.9% | 36.2% | 29.8% | 31.7% |
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. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (26 companies) | 11.4% | 16.0% | 16.2% | 12.9% | 15.7% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| DAQO New Energy Corp. ($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 (25 companies) | 2.2% | 2.8% | 2.9% | 3.2% | 3.6% |
|---|
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. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.6% | 13.1% | 12.1% | 5.6% | 10.5% |
|---|
| AXT Inc ($AXTI) | 4.6% | 7.7% | 6.3% | -0.1% | 1.7% |
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 (24 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
