NasdaqGS:AXTI

Stock Analysis Report

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.8%

AXTI

-11.6%

US Semiconductor

-7.4%

US Market


1 Year Return

-21.7%

AXTI

25.8%

US Semiconductor

10.5%

US Market

Return vs Industry: AXTI underperformed the US Semiconductor industry which returned 25.8% over the past year.

Return vs Market: AXTI underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

AXTIIndustryMarket
7 Day-12.8%-11.6%-7.4%
30 Day-20.3%-5.6%-3.6%
90 Day10.4%1.8%-0.6%
1 Year-21.7%-21.7%28.2%25.8%12.8%10.5%
3 Year-47.9%-47.9%74.4%65.1%37.4%28.6%
5 Year26.9%26.9%127.0%105.6%61.3%43.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXTI ($3.47) is trading below our estimate of fair value ($7.53)

Significantly Below Fair Value: AXTI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AXTI is unprofitable, so we can't compare its PE Ratio to the 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 (0.7x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

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

116.1%

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 (1.7%).

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 (11.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AXTI's revenue (11.6% 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?

30.2%

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 30.2% 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 (-28.7%).


Return on Equity

High ROE: AXTI has a negative Return on Equity (-0.82%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AXT's financial position?


Financial Position Analysis

Short Term Liabilities: AXTI's short term assets ($113.2M) exceed its short term liabilities ($27.5M).

Long Term Liabilities: AXTI's short term assets ($113.2M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: AXTI's debt to equity ratio (2.8%) is considered satisfactory.

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


Balance Sheet

Inventory Level: AXTI has a high level of physical assets or inventory.

Debt Coverage by Assets: AXTI's debt is covered by short term assets (assets are 20.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AXTI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: AXTI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

16.8yrs

Average board tenure


CEO

Morris Young (74yo)

10.6yrs

Tenure

US$1,791,719

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 ($USD1.79M) is above average for companies of similar size in the US market ($USD524.26K).

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


Board Members

NamePositionTenureCompensationOwnership
Morris Young
Co-Founder10.6yrsUS$1.79m4.11% $5.7m
Christine Russell
Director0.2yrsno datano data
David Chang
Independent Director19.2yrsUS$122.00k0.44% $601.7k
Jesse Chen
Non-Executive Chairman10.9yrsUS$143.50k0.33% $449.1k
Leonard Leblanc
Independent Director16.8yrsUS$125.50k0.39% $535.9k

16.8yrs

Average Tenure

74yo

Average Age

Experienced Board: AXTI's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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$137.931m
  • Shares outstanding: 39.52m
  • 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 company offers indium phosphide (InP) for use in fiber optic lasers and detectors, passive optical networks, data center connectivity, silicon photonics, photonic integrated circuits, terrestrial solar cells, radio frequency amplifier and switching, infrared light-emitting diode (LEDs) motion control, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for applications in power amplifiers, direct broadcast television, transistors, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in 3-D sensing, data center communication, high brightness LEDs, lasers, near-infrared sensors, printer head lasers and LEDs, optical couplers, solar cells, and night vision goggles, as well as laser machining, cutting, and drilling. In addition, the company offers germanium (Ge) substrates for use in satellite solar cells, optical sensors and detectors, terrestrial concentrated photo voltaic cells, multi-junction solar cells for satellites, and infrared detectors. Further, it provides materials, including raw gallium, gallium alloys, InP poly-crystal, high purity gallium, arsenic, Ge, Ge dioxide, pyrolytic boron nitride crucibles, and boron oxide. AXT, Inc. 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 founded in 1986 and is headquartered in Fremont, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:32
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.