Is AXT, Inc. overvalued or undervalued?

As of 3 August 2023, the valuation grade for AXT, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company is currently considered overvalued based on its valuation ratios, with a Price to Book Value of 0.44, an EV to EBIT of -4.42, and an EV to EBITDA of -7.55. These figures suggest significant challenges in profitability and operational efficiency compared to its peers.
In the peer comparison, AXT, Inc. shows a markedly negative EV to EBITDA ratio of -9.38, while Kimball Electronics, Inc. is categorized as very expensive with a P/E ratio of 34.66, highlighting the stark contrast in valuation within the industry. Additionally, Richardson Electronics Ltd. and Tigo Energy, Inc. are also classified as risky, with their own negative metrics. Despite AXT, Inc.'s impressive recent stock performance, returning 91.30% over the past month compared to the S&P 500's 2.33%, the underlying financial ratios suggest that the stock may not be sustainable at its current price levels.