Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips worldwide. The company was founded in 1995 and is based in Beverly, Massachusetts.
ACLS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ACLS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Axcelis Technologies Inc ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 130.5%. The most interesting components of our discounted cash flow analysis for Axcelis Technologies Inc ended up being:
In the past 5.26 years, Axcelis Technologies Inc has a compound free cash flow growth rate of 0.5%; that's higher than 75.24% of free cash flow generating stocks in the Technology sector.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately only 14.09% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ACLS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 45.97% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Axcelis Technologies Inc? See ERIC, AVT, GLGI, SONO, and LDOS.
Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, announced today that Mary Puma, president and CEO, Kevin Brewer, executive vice president and CFO, and Doug Lawson, executive vice president of corporate marketing and strategy, will participate in the 23rd Annual Needham Virtual Growth Conference, taking place January 11-15, 2021.
This is a letter I wrote to the friends and family members whose accounts I manage. The accounts are managed separately and have a lot of overlap, though not completely. Anyway, this letter is lightly edited to stand alone, and is the second part of two, with the other reviewing...
Daniel Shvartsman on Seeking Alpha | January 4, 2021