AXT Inc Common Stock (AXTI)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach AXT as a Graham-style asset-and-earnings question, not a story. It makes compound and single-element semiconductor substrates, including indium phosphide for data-center connectivity, 5G, and photonics. That can be a technically demanding niche, but the figures do not yet show durable pricing power or consistent profitability. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $47.6M and net income was $11.1M, or diluted EPS $0.17. That was a sharp turn from fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $18.0M and net income was a $7.0M loss. Yet FY2025, ended 2025-12-31, still showed revenue of $88.3M and a net loss of $21.3M, or diluted EPS -$0.49; FY2024 and FY2023 were also loss-making. Free cash flow is negative $19.6M, so the latest accounting profit has not yet translated into cash. The balance sheet has low leverage—D/E 0.11—but returns are weak: FairStock's ROE is 1.01% and ROCE 0.34%. At the 2026-10-13 close of $64.63, FairStock calculates a P/E of 2,154.33, P/B of 4.69, EV/EBITDA of 266.42, and a Graham Number of $3.02, leaving a margin of safety of -2,040.07%. The Piotroski F-Score is 6/9, Altman Z-Score 18.02, and FairStock Score 32/100. The Lynch category is TURNAROUND—loss in the latest year after earlier profits. One good quarter does not create a durable moat. I would want several periods of positive cash flow and normalized earnings before calling the valuation defensible. At this price, the market already seems to price a very large recovery.

In plain English: AXT makes special semiconductor materials used in data centers, communications, and other electronics. Its latest quarter showed a big jump in sales and a profit, but the latest full year was still a loss, and the company used more cash than it generated. The stock price looks very expensive compared with its profits and assets, so the market seems to expect a large recovery.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer