AXT, Inc.
Find Ratings ReportsAXT INC's gross profit margin for the fourth quarter of its fiscal year 2020 has increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. AXT INC is extremely liquid. Currently, the Quick Ratio is 2.49 which clearly shows the ability to cover any short-term cash needs. AXTI managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.51% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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| Income Statement | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 27.04 | 18.41 |
| EBITDA ($mil) | 0.0 | -1.44 |
| EBIT ($mil) | 1.92 | -2.8 |
| Net Income ($mil) | 2.06 | -2.05 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 72.84 | 36.32 |
| Total Assets ($mil) | 298.86 | 223.35 |
| Total Debt ($mil) | 12.79 | 8.76 |
| Equity ($mil) | 192.62 | 187.89 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 33.89 | 28.37 |
| EBITDA Margin | 0.0 | -7.83 |
| Operating Margin | 7.1 | -15.21 |
| Sales Turnover | 0.32 | 0.37 |
| Return on Assets | 1.08 | -1.16 |
| Return on Equity | 1.61 | -1.48 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 4.21 | 4.11 |
| Debt/Capital | 0.06 | 0.04 |
| Interest Expense | 0.04 | 0.0 |
| Interest Coverage | 46.8 | 0.0 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 41.14 | 40.63 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.05 | -0.05 |
| Book value / share | 4.68 | 4.62 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 533720.0 | 725852.0 |
HOLD. AXT INC's P/E ratio indicates a significant premium compared to an average of 67.67 for the Computer and Electronic Product Manufacturing subsector and a significant premium compared to the S&P 500 average of 43.53. For additional comparison, its price-to-book ratio of 2.64 indicates a significant discount versus the S&P 500 average of 4.31 and a significant discount versus the subsector average of 12.23. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AXTI 176.43 | Peers 71.68 | AXTI NA | Peers 33.07 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. AXTI is trading at a significant premium to its peers. |
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 |
|
Price to Earnings/Growth |
|
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| AXTI 41.86 | Peers 31.32 | AXTI 0.69 | Peers 1.58 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. AXTI is trading at a significant premium to its peers. |
Discount. 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. AXTI trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| AXTI 2.64 | Peers 12.23 | AXTI 216.66 | Peers 56.93 | |||||||||||||||||||||
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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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AXTI is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| AXTI 5.33 | Peers 12.69 | AXTI 14.53 | Peers 23.22 | |||||||||||||||||||||
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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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