AXT Inc
Find Ratings ReportsAXT INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. AXT INC has weak liquidity. Currently, the Quick Ratio is 0.88 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 7.95% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 20.43 | 26.8 |
EBITDA ($mil) | 0.0 | 1.07 |
EBIT ($mil) | -3.56 | -1.0 |
Net Income ($mil) | -3.62 | 1.34 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 52.25 | 50.69 |
Total Assets ($mil) | 358.7 | 370.07 |
Total Debt ($mil) | 2.35 | 48.89 |
Equity ($mil) | 203.99 | 221.61 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 22.65 | 39.8 |
EBITDA Margin | 0.0 | 3.98 |
Operating Margin | -17.43 | -3.74 |
Sales Turnover | 0.21 | 0.38 |
Return on Assets | -4.98 | 4.27 |
Return on Equity | -8.85 | 7.05 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.09 | 2.44 |
Debt/Capital | 0.01 | 0.18 |
Interest Expense | 0.38 | 0.4 |
Interest Coverage | -9.27 | -2.5 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 43.64 | 43.55 |
Div / share | 0.0 | 0.0 |
EPS | -0.09 | 0.03 |
Book value / share | 4.67 | 5.09 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2182962.0 | 181998.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.98 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, AXT INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AXTI NM | Peers 53.34 | AXTI NA | Peers 44.47 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. AXTI's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AXTI 26.88 | Peers 26.06 | AXTI NA | Peers 1.95 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. AXTI's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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AXTI 0.98 | Peers 23.59 | AXTI -219.44 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AXTI is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AXTI is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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AXTI 2.63 | Peers 14.13 | AXTI -46.29 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AXTI is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AXTI significantly trails its peers on the basis of sales growth. |
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