A forensic read on Axt Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
4.4
Distress distance
2
Forensic signals
-9.1%
ROE
-11.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Axt Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 4.4, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-7.4%
FY2025
Return on invested capital.Return on invested capital is -7.4% in the latest fiscal year and slipping across FY2023–FY2025 from -5.8%. After-tax operating profit was ($17M) in FY2023 and ($17M) in FY2025, with operating income at -28.5% of revenue in FY2023, -14.9% in FY2024 and -24.9% in FY2025. The capital base behind it came down -19% across FY2023–FY2025, from $292M to $235M, so this return is struck on a smaller base than it started on.
111d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 94 to 111 days FY2024→FY2025 (receivables +5% vs revenue -11%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 93 → 94 → 111 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue was roughly flat (-94%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
Key fundamentals
Latest Revenue$88.3M
Revenue Growth YoY-11.1%
Revenue CAGR (2yr)+8.0%
Net Margin-24.1%
Free Cash Flow-$18.8M
Return on Equity-9.1%
Debt / Equity0.02x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Axt Inc's actual 10-K/10-Q/8-K filings?