Guru Donald Smith (Trades, Portfolio) is a deep value portfolio manager who employs a strict bottom-up approach to investing. Smith has well over three decades of investment experience. During the third quarter, he added 149,138 shares of Axcelis Technologies (ACLS, Financial) to his portfolio. The trade had a 0.05% impact on Smith’s portfolio and he now owns 2,987,305 shares. Since the trade, the company's market price has gained an estimated 4%.
Axcelis designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. Semiconductor chips, also known as integrated circuits, are used in personal computers, telecommunication equipment, digital consumer electronics, wireless communication products and other applications. Types of semiconductor chips include memory chips (which store and retrieve information), microprocessors (logic devices which process information) and “system on chip” devices, which have both logic and memory features.
Axcelis Technologies is headquartered in Beverly, Massachusetts, and is a world-leading provider of equipment and services to the semiconductor manufacturing industry. The company believes that its Purion family of products are the most innovative implanters available on the market today. The ion implantation business represents 93.7% of Axcelis' revenue in 2015 with the remaining 6.3% of revenue derived from other legacy processing systems.
Axcelis has a market cap of $400.93 million, a price-earnings ratio of 7.14, an enterprise value of $387.53 million and a price-book ratio of 2.11.
According to GuruFocus, Axcelis Technologies has a 6 of 10 financial strength rating with a cash to debt ratio of 1.28, an equity to asset ratio of 0.64 and an interest coverage ratio of 3.44. The Piotroski F-Score of 5 and Ă‚ Altman Z-Score of 2.51 indicate the company is financially stable but is facing some type of financial stress, which increases potential bankruptcy risk. The company also has a 4 of 10 profitability and growth rating with an operating margin of 6.11%, a net-margin of 4.19%, a ROE of 6.25%, a ROA of 4.02%, a ROC of (Joel Greenblatt (Trades, Portfolio)) of 11.30% and three-year revenue growth of 9.70%.
It is possible that Donald Smith (Trades, Portfolio) increased his stake in Axcelis Technologies during the third quarter because the company has 38 years of operating experience in its industry, and it has established itself as a leading provider of equipment and services to the Global Semiconductor Equipment & Materials industry.
Below is a Peter Lynch chart that shows Axcelis Technologies is currently trading below its intrinsic value.
Smith began his investment career well over three decades ago as an analyst with Capital Research Company. Smith worked hard early in his career and was promoted to becoming the director, vice president and portfolio manager at Capital Guardian Trust Co. In 1980, Smith became the CEO of Home Insurance Company and then president of Home Portfolio Advisors Inc. He purchased the company in 1983, changing the name to Donald Smith & Co. Inc.
Disclosure:Ă‚ Author does not own any shares of this company.
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