AXTI

AXT, Inc.

Fundamental data last updated:October 29, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

10/29/2026

Business Summary

AXT, Inc. is a company dedicated to the design, development, production, and worldwide distribution of both compound and single-element semiconductor substrates. Leveraging its proprietary vertical gradient freeze technology, the firm manufactures these essential components. Its diverse product range includes indium phosphide substrates, vital for applications like data center connectivity (utilizing light and lasers), 5G communications, fiber optic lasers and detectors, passive optical networks, silicon photonics, photonic integrated circuits, terrestrial solar cells, RF amplification and switching, infrared LEDs for motion control, LiDAR in robotics and autonomous vehicles, and infrared thermal imaging. AXT also provides semi-insulating gallium arsenide (GaAs) substrates, which are critical for Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells. Furthermore, its semi-conducting GaAs substrates find use in LEDs, screen displays, printer head lasers and LEDs, 3D sensing via VCSELs, data center communication using VCSELs, sensors for industrial robotics and near-infrared applications, optical couplers, solar cells, night vision goggles, LiDAR for robotics and autonomous vehicles, and various other laser technologies such as machining, cutting, and drilling. Germanium substrates are another key offering, employed in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photovoltaic cells, infrared detectors, and as carrier wafers for LEDs. Beyond these substrates, AXT supplies high-purity materials including 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, along with pyrolytic boron nitride (pBN) crucibles and pBN insulating parts. The company distributes its products via a direct salesforce in the United States, China, and Europe, alongside independent sales representatives and distributors across Japan, Taiwan, Korea, and other international markets. Established in 1986 as American Xtal Technology, Inc., the company rebranded to AXT, Inc. in July 2000 and is headquartered in Fremont, California.

 


VALUATION

P/E

2398.27

Market Cap ($M USD)

$3.76B

Forward P/E

66.97

PEG

-7.83

PRICE TO SALES

29.95

PRICE TO BOOK

3.96

EV / EBITDA

233.73

5-Year Average P/E

Free Cash Flow Yield

-0.52%

DCF Value

$-5.70

Graham Number

$4.65

Price to FCF

-192.11

EV to FCF

-175.41

Earnings Yield

0.12%

FCF Yield

-0.52%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.07

Next Year EPS Growth Estimate

$0.86

Next Year Revenue Growth Estimate

$221.20M

Return on Equity (ROE)

1.00%

FREE CASH FLOW

Operating Margin

3.09%

Debt-to-Equity

0.10

Piotroski F-Score

4

Altman Z-Score

14.67

Return on Invested Capital (ROIC)

0.23%

Current Ratio

4.77

Quick Ratio

4.00

Net Debt to EBITDA

-22.25

Interest Coverage

4.94

Gross Profit margin

32.18%

FCF PER SHARE

$-0.32

REVENUE PER SHARE

$2.05

Gainseekers Quantitative Analysis

Summary

The market appears to be wildly mispricing AXT, Inc. The stock’s snapshot price trades astronomically above its DCF value, suggesting a significant overvaluation. With a Forward P/E of 64.47, the market expects explosive growth, yet the negative earnings yield and ROIC of -3.83% paint a grim picture of profitability. However, the Altman Z-score of 30.34 indicates financial stability, suggesting the company is not at immediate risk of distress. This juxtaposition of high expectations and poor current performance creates a precarious investment scenario.

AI Exposure / Tech Reliance

Positioned within the semiconductor industry, AXT, Inc. is well-placed to capitalize on AI advancements and tech shifts. The sector's inherent demand for cutting-edge materials aligns with the company's core competencies. This strategic alignment could drive future growth as AI technologies proliferate.

The Bull Case

For the discerning GARP investor, AXT, Inc. offers a tantalizing prospect. The Forward PEG ratio of 0.08 suggests undervaluation relative to expected growth, a rare find in the tech sector. Despite a low Piotroski F-Score of 3, the company's robust Altman Z-score and manageable debt levels indicate a solid financial foundation. These metrics hint at potential pricing power and capital efficiency, making it an intriguing buy for those betting on a turnaround.

The Bear Case

AXT, Inc. faces daunting structural challenges. The Price/Sales ratio of 56.27 and Price/Book of 22.57 signal extreme overvaluation. Negative cash flow metrics, such as a FCF Yield of -0.35% and an EV to FCF of -288.85, highlight severe cash generation issues. Trading close to its 52-week high, the stock appears technically overextended, raising red flags for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$99.50

Institutional Ownership %

1-Year Beta

1.86

Insider Buying % (6 Mo)

Distance to 52-Week High

149.76%

Distance to 52-Week Low

89.78%

EARNINGS SURPRISE %

164.04%

50-DAY SMA

$68.49

200-DAY SMA

$63.96

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.