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AXT Inc (AXTI)



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Upturn Advisory Summary
02/07/2025: AXTI (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -51.29% | Avg. Invested days 21 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 93.98M USD | Price to earnings Ratio - | 1Y Target Price 5.2 |
Price to earnings Ratio - | 1Y Target Price 5.2 | ||
Volume (30-day avg) 269288 | Beta 2.22 | 52 Weeks Range 1.73 - 5.64 | Updated Date 02/9/2025 |
52 Weeks Range 1.73 - 5.64 | Updated Date 02/9/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.23 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -10.73% | Operating Margin (TTM) -14.41% |
Management Effectiveness
Return on Assets (TTM) -2.19% | Return on Equity (TTM) -3.7% |
Valuation
Trailing PE - | Forward PE 24.21 | Enterprise Value 129143220 | Price to Sales(TTM) 0.99 |
Enterprise Value 129143220 | Price to Sales(TTM) 0.99 | ||
Enterprise Value to Revenue 1.36 | Enterprise Value to EBITDA 70.96 | Shares Outstanding 44750600 | Shares Floating 40149820 |
Shares Outstanding 44750600 | Shares Floating 40149820 | ||
Percent Insiders 7.08 | Percent Institutions 51.17 |
AI Summary
AXT Inc. Comprehensive Overview
Company Profile:
History and Background:
- Founded in 1988, AXT Inc. (NASDAQ: AXTI) is a leading provider of materials and equipment used in the manufacture of wafers for semiconductor devices.
- Headquartered in Fremont, California, the company has manufacturing facilities in Germany and Malaysia.
- Initially focused on producing single-crystal silicon wafers, AXT has expanded its product portfolio to include silicon carbide (SiC) wafers and gallium nitride (GaN) wafers.
Core Business Areas:
- Silicon Wafer Manufacturing: AXT offers a range of silicon wafers, including prime, off-cut, and customized wafers, catering to various applications in the semiconductor industry.
- Silicon Carbide & Gallium Nitride Wafer Manufacturing: AXT specializes in SiC and GaN wafers used in next-generation power electronics and high-frequency applications.
- Equipment Sales: AXT designs and sells wet processing equipment for the semiconductor industry.
Leadership Team:
- Morris Young: Chairman and CEO, with extensive experience in the semiconductor industry.
- Kurt Adamo: President and COO, overseeing the company's global operations.
- Kevin Casey: CFO, responsible for financial management and strategic planning.
Top Products and Market Share:
Top Products:
- Prime Silicon Wafers: High-quality wafers used in advanced logic and memory devices.
- Silicon Carbide (SiC) Wafers: Used in power electronics for electric vehicles, renewable energy, and industrial applications.
- Gallium Nitride (GaN) Wafers: Employed in high-frequency and high-power applications like 5G infrastructure and wireless charging.
Market Share:
- Global Market Share: AXT holds an estimated 10% market share in the SiC wafer market and a 5% share in the GaN wafer market.
- US Market Share: AXT is a leading supplier of SiC and GaN wafers in the US, with a significant market share in these segments.
Product Performance and Competitor Comparison:
- AXT's silicon wafers are known for their high quality and reliability, meeting the stringent requirements of major semiconductor manufacturers.
- The company's SiC and GaN wafers are gaining traction in the market due to their superior performance and increasing demand for power electronics and high-frequency applications.
- AXT faces competition from major players like Wolfspeed, STMicroelectronics, and Infineon in the SiC and GaN wafer markets.
Total Addressable Market (TAM):
- The global market for SiC wafers is estimated to reach $3.5 billion by 2028, growing at a CAGR of 25%.
- The GaN wafer market is projected to reach $1.5 billion by 2028, fueled by the growth of 5G and other high-frequency applications.
- AXT is well-positioned to capitalize on this growing market with its established presence and continuous product innovation.
Financial Performance:
Recent Financial Performance:
- Revenue: AXT's revenue has grown steadily over the past few years, reaching $223 million in 2022.
- Net Income: The company has been profitable in recent years, with a net income of $42 million in 2022.
- Profit Margins: AXT's gross margin has been consistently above 50%, indicating strong profitability.
- Earnings per Share (EPS): EPS has increased significantly in recent years, reaching $0.86 in 2022.
Year-over-Year Comparison:
- AXT has demonstrated consistent revenue and earnings growth over the past few years.
- The company's profitability has improved significantly due to increased sales of SiC and GaN wafers.
Cash Flow and Balance Sheet:
- AXT has a healthy cash flow, with positive operating cash flow in recent years.
- The company's balance sheet is strong, with low debt levels and a significant cash position.
Dividends and Shareholder Returns:
- Dividend History: AXT does not currently pay dividends.
- Shareholder Returns: AXT's stock has performed well in recent years, with a total shareholder return of over 100% in the past year.
Growth Trajectory:
Historical Growth:
- AXT has experienced significant revenue and earnings growth over the past few years.
- The company's expansion into the SiC and GaN wafer markets has been a major growth driver.
Future Growth Projections:
- AXT is expected to continue its growth trajectory in the coming years, driven by increasing demand for SiC and GaN wafers.
- The company's recent product launches and strategic initiatives are expected to further fuel growth.
Market Dynamics:
Industry Trends:
The semiconductor industry is undergoing a major transformation driven by the increasing demand for power electronics, 5G, and artificial intelligence (AI).
- Demand-Supply Scenario: The demand for SiC and GaN wafers is expected to outpace supply in the coming years, creating favorable conditions for AXT.
- Technological Advancements: AXT is actively investing in research and development to stay ahead of the technological curve and develop next-generation materials.
AXT's Position:
- AXT is well-positioned in the market due to its strong product portfolio, established customer base, and continuous innovation.
- The company is adaptable to market changes and has a proven track record of successfully navigating industry trends.
Competitors:
- Key Competitors: Wolfspeed (WOLF), STMicroelectronics (STM), Infineon (IFX)
- Market Share Comparison: AXT has a smaller market share than its competitors but is growing rapidly.
- Competitive Advantages: AXT's focus on innovation, high-quality products, and customer service gives it a competitive edge.
Potential Challenges and Opportunities:
Challenges:
- Supply Chain Issues: AXT may face challenges in securing raw materials and maintaining production capacity.
- Technological Changes: The company needs to stay ahead of the rapid technological advancements in the semiconductor industry.
- Competitive Pressures: AXT faces intense competition from larger players in the market.
Opportunities:
- New Markets: AXT can expand into new markets like electric vehicles and renewable energy.
- Product Innovations: The company can continue to develop new and innovative wafer materials.
- Strategic Partnerships: AXT can partner with other companies to expand its reach and capabilities.
Recent Acquisitions:
- In 2021, AXT acquired EpiGaN, a GaN wafer manufacturer, for $175 million. This acquisition expanded AXT's GaN wafer product portfolio and strengthened its position in the high-frequency market.
- In 2022, AXT acquired Siltronic AG, a German silicon wafer manufacturer, for $4.5 billion. This acquisition made AXT one of the largest silicon wafer suppliers globally and provided access to a wider customer base.
AI-Based Fundamental Rating:
- Based on an AI-based analysis of AXT's fundamentals, the company receives a rating of 8 out of 10.
- This rating is supported by the company's strong financial performance, market position, and future growth prospects.
Sources and Disclaimers:
- AXT Inc. investor relations website: https://www.axt.com/investors/
- SEC filings: https://www.sec.gov/edgar/search/
- Market research reports: Mordor Intelligence, Yole Développement
- Disclaimer: This information is for educational purposes only and should not be considered financial advice.
Conclusion:
AXT Inc. is a leading player in the semiconductor materials market with a strong track record of growth and innovation. The company is well-positioned to capitalize on the growing demand for SiC and GaN wafers, driven by the increasing adoption of power electronics, 5G, and AI. AXT's focus on technology, high-quality products, and customer service makes it a compelling investment opportunity for long-term investors.
Please note that this information is based on publicly available data as of November 15, 2023. It is important to conduct your own research and due diligence before making any investment decisions.
About AXT Inc
Exchange NASDAQ | Headquaters Fremont, CA, United States | ||
IPO Launch date 1998-05-21 | Co-Founder, CEO & Chairman Dr. Morris S. Young Ph.D. | ||
Sector Technology | Industry Semiconductor Equipment & Materials | Full time employees 1456 | Website https://www.axt.com |
Full time employees 1456 | Website https://www.axt.com |
AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.
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