AEHR TEST SYSTEMS (AEHR)
US00760J1088 - Common Stock
We assign a fundamental rating of 6 out of 10 to AEHR. AEHR was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. AEHR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AEHR is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make AEHR a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year AEHR was profitable.
In the past year AEHR had a positive cash flow from operations.
In multiple years AEHR reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: AEHR reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.16%, AEHR belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
With an excellent Return On Equity value of 17.80%, AEHR belongs to the best of the industry, outperforming 81.13% of the companies in the same industry.
AEHR has a better Return On Invested Capital (11.27%) than 77.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 17.8% | ||
| ROIC | 11.27% |
ROA(3y)6.88%
ROA(5y)-3.51%
ROE(3y)6.69%
ROE(5y)-6.74%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AEHR has a better Profit Margin (21.42%) than 78.30% of its industry peers.
In the last couple of years the Profit Margin of AEHR has grown nicely.
AEHR has a Operating Margin of 18.34%. This is in the better half of the industry: AEHR outperforms 72.64% of its industry peers.
In the last couple of years the Operating Margin of AEHR has grown nicely.
AEHR has a Gross Margin of 49.49%. This is in the better half of the industry: AEHR outperforms 63.21% of its industry peers.
In the last couple of years the Gross Margin of AEHR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.34% | ||
| PM (TTM) | 21.42% | ||
| GM | 49.49% |
OM growth 3YN/A
OM growth 5Y45.93%
PM growth 3YN/A
PM growth 5Y65.73%
GM growth 3Y10.32%
GM growth 5Y3.76%
2. Health
2.1 Basic Checks
AEHR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AEHR has been increased compared to 1 year ago.
The number of shares outstanding for AEHR has been increased compared to 5 years ago.
AEHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AEHR has an Altman-Z score of 14.51. This indicates that AEHR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.51, AEHR belongs to the best of the industry, outperforming 89.62% of the companies in the same industry.
AEHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.51 |
ROIC/WACC0.97
WACC11.65%
2.3 Liquidity
A Current Ratio of 10.06 indicates that AEHR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 10.06, AEHR belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
A Quick Ratio of 5.91 indicates that AEHR has no problem at all paying its short term obligations.
AEHR has a Quick ratio of 5.91. This is amongst the best in the industry. AEHR outperforms 90.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.06 | ||
| Quick Ratio | 5.91 |
3. Growth
3.1 Past
AEHR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.67%.
Measured over the past years, AEHR shows a very strong growth in Earnings Per Share. The EPS has been growing by 53.68% on average per year.
AEHR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.12%.
AEHR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.05% yearly.
EPS 1Y (TTM)1.67%
EPS 3Y70195000%
EPS 5Y53.68%
EPS growth Q2Q-118.75%
Revenue 1Y (TTM)14.12%
Revenue growth 3Y42.84%
Revenue growth 5Y17.05%
Revenue growth Q2Q-56.05%
3.2 Future
Based on estimates for the next years, AEHR will show a very strong growth in Earnings Per Share. The EPS will grow by 50.12% on average per year.
Based on estimates for the next years, AEHR will show a very strong growth in Revenue. The Revenue will grow by 51.97% on average per year.
EPS Next Y-19.25%
EPS Next 2Y-3.3%
EPS Next 3Y50.12%
EPS Next 5YN/A
Revenue Next Year0.62%
Revenue Next 2Y2.36%
Revenue Next 3Y51.97%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.52, AEHR is valued on the expensive side.
78.30% of the companies in the same industry are more expensive than AEHR, based on the Price/Earnings ratio.
AEHR is valuated rather cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
AEHR is valuated rather expensively with a Price/Forward Earnings ratio of 20.14.
Based on the Price/Forward Earnings ratio, AEHR is valued a bit cheaper than 77.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AEHR to the average of the S&P500 Index (21.63), we can say AEHR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEHR is valued a bit cheaper than the industry average as 67.92% of the companies are valued more expensively.
60.38% of the companies in the same industry are more expensive than AEHR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.29 | ||
| EV/EBITDA | 20.28 |
4.3 Compensation for Growth
The decent profitability rating of AEHR may justify a higher PE ratio.
A more expensive valuation may be justified as AEHR's earnings are expected to grow with 50.12% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-3.3%
EPS Next 3Y50.12%
5. Dividend
5.1 Amount
AEHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AEHR TEST SYSTEMS
NASDAQ:AEHR (4/25/2024, 7:00:00 PM)
Premarket: 11.43 +0.13 (+1.15%)11.3
+0.16 (+1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap326.68M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 20.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
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PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 17.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.34% | ||
| PM (TTM) | 21.42% | ||
| GM | 49.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 10.06 | ||
| Quick Ratio | 5.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.67%
EPS 3Y70195000%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.12%
Revenue growth 3Y42.84%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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