NasdaqGS:AXTI

Stock Analysis Report

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Executive Summary

AXT, Inc. researches, develops, and produces compound and single element semiconductor substrates.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has AXT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXTI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

AXTI

3.7%

US Semiconductor

3.0%

US Market


1 Year Return

32.3%

AXTI

45.7%

US Semiconductor

15.8%

US Market

Return vs Industry: AXTI underperformed the US Semiconductor industry which returned 44.8% over the past year.

Return vs Market: AXTI exceeded the US Market which returned 15.4% over the past year.


Shareholder returns

AXTIIndustryMarket
7 Day6.1%3.7%3.0%
30 Day10.7%6.8%6.0%
90 Day-7.8%19.8%16.4%
1 Year32.3%32.3%48.5%45.7%18.4%15.8%
3 Year-33.2%-33.2%95.3%84.8%44.8%35.4%
5 Year129.9%129.9%224.3%192.5%75.7%56.7%

Price Volatility Vs. Market

How volatile is AXT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AXT undervalued compared to its fair value and its price relative to the market?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXTI ($5.08) is trading below our estimate of fair value ($5.53)

Significantly Below Fair Value: AXTI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AXTI is unprofitable, so we can't compare its PE Ratio to the US Semiconductor industry average.

PE vs Market: AXTI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AXTI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AXTI is good value based on its PB Ratio (1.1x) compared to the US Semiconductor industry average (3.5x).


Next Steps

Future Growth

How is AXT forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

181.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXTI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: AXTI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AXTI's is expected to become profitable in the next 3 years.

Revenue vs Market: AXTI's revenue (15.5% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: AXTI's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AXTI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AXT performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXTI is currently unprofitable.

Growing Profit Margin: AXTI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AXTI is unprofitable, but has reduced losses over the past 5 years at a rate of 6.1% per year.

Accelerating Growth: Unable to compare AXTI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AXTI is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-3.1%).


Return on Equity

High ROE: AXTI has a negative Return on Equity (-0.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is AXT's financial position?


Financial Position Analysis

Short Term Liabilities: AXTI's short term assets ($110.7M) exceed its short term liabilities ($28.1M).

Long Term Liabilities: AXTI's short term assets ($110.7M) exceed its long term liabilities ($4.0M).


Debt to Equity History and Analysis

Debt Level: AXTI's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AXTI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AXTI's debt is well covered by operating cash flow (164.5%).

Interest Coverage: Insufficient data to determine if AXTI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is AXT current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AXTI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AXTI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AXTI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AXTI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXTI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

17.3yrs

Average board tenure


CEO

Morris Young (75 yo)

11.08yrs

Tenure

US$2,121,866

Compensation

Dr. Morris S. Young, Ph.D. co-founded AXT Inc. in 1986 and has been its Chief Executive Officer since July 16, 2009. Dr. Young served as an Interim Chief Financial Officer and Corporate Secretary of AXT In ...


CEO Compensation Analysis

Compensation vs Market: Morris's total compensation ($USD2.12M) is above average for companies of similar size in the US market ($USD1.33M).

Compensation vs Earnings: Morris's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Morris Young
Co-Founder11.08yrsUS$2.12m4.33%
$ 8.8m
Christine Russell
Independent Director0.67yrUS$24.65k0.043%
$ 86.8k
David Chang
Independent Director19.67yrsUS$127.00k0.46%
$ 934.5k
Jesse Chen
Independent Non-Executive Chairman11.42yrsUS$148.00k0.33%
$ 675.9k
Leonard Leblanc
Independent Director17.33yrsUS$129.00k0.45%
$ 903.9k

17.3yrs

Average Tenure

75yo

Average Age

Experienced Board: AXTI's board of directors are seasoned and experienced ( 17.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AXTI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AXT, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AXT, Inc.
  • Ticker: AXTI
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$202.717m
  • Shares outstanding: 39.90m
  • Website: https://www.axt.com

Number of Employees


Location

  • AXT, Inc.
  • 4281 Technology Drive
  • Fremont
  • California
  • 94538
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXTINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1998
AHVDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1998

Biography

AXT, Inc. researches, develops, and produces compound and single element semiconductor substrates. It produces semiconductor substrates using its proprietary vertical gradient freeze technology. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:12
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.