AXT, Inc. Fundamental Analysis (NASDAQ: AXTI)
AXT, Inc. (NASDAQ: AXTI) shows weak financial fundamentals with a PE ratio of 100.23, profit margin of 18.53%, and ROE of 5.40%. The company generates $0.2B in annual revenue with weak year-over-year growth of -11.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AXTI's fundamental strength across five key dimensions:
Efficiency Score
WeakAXTI struggles to generate sufficient returns from assets.
Valuation Score
ModerateAXTI shows balanced valuation metrics.
Growth Score
WeakAXTI faces weak or negative growth trends.
Financial Health Score
ExcellentAXTI maintains a strong and stable balance sheet.
Profitability Score
WeakAXTI struggles to sustain strong margins.
Key Financial Metrics
Is AXTI Expensive or Cheap?
P/E Ratio
AXTI trades at 100.23 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AXTI's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values AXT, Inc. at 3.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 73.53 times EBITDA. This signals the market has high growth expectations.
How Well Does AXTI Make Money?
Net Profit Margin
For every $100 in sales, AXT, Inc. keeps $18.53 as profit after all expenses.
Operating Margin
Core operations generate 19.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.40 in profit for every $100 of shareholder equity.
ROA
AXT, Inc. generates $2.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AXT, Inc. generates limited operating cash flow of $3.48M, signaling weaker underlying cash strength.
Free Cash Flow
AXT, Inc. generates weak or negative free cash flow of $-8.46M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.13 in free cash annually.
FCF Yield
AXTI converts -0.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
100.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.008
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AXTI Stacks Against Its Sector Peers
| Metric | AXTI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 100.23 | 32.70 | Worse (Expensive) |
| ROE | 5.40% | 758.00% | Weak |
| Net Margin | 18.53% | -4312.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 3.80 | 12.15 | Strong Liquidity |
| ROA | 2.60% | 1067467.00% | Weak |
AXTI outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AXT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-15.35%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-700.07%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-299.20%
Industry Style: Growth, Innovation, High Beta
Declining