AEHR TEST SYSTEMS (AEHR) Stock Fundamental Analysis
NASDAQ:AEHR - Nasdaq - US00760J1088 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AEHR. AEHR was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While AEHR has a great health rating, its profitability is only average at the moment. AEHR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AEHR had positive earnings in the past year.
AEHR had a negative operating cash flow in the past year.
In multiple years AEHR reported negative net income over the last 5 years.
In multiple years AEHR reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.69%, AEHR belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Equity of AEHR (18.40%) is better than 83.64% of its industry peers.
With a Return On Invested Capital value of 0.04%, AEHR perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AEHR is in line with the industry average of 10.57%.
The 3 year average ROIC (10.57%) for AEHR is well above the current ROIC(0.04%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.69% | ||
| ROE | 18.4% | ||
| ROIC | 0.04% |
ROA(3y)18.64%
ROA(5y)6.59%
ROE(3y)22.5%
ROE(5y)5.98%
ROIC(3y)10.57%
ROIC(5y)N/A
1.3 Margins
AEHR has a Profit Margin of 37.17%. This is amongst the best in the industry. AEHR outperforms 95.45% of its industry peers.
AEHR has a Operating Margin (0.11%) which is comparable to the rest of the industry.
AEHR has a Gross Margin (45.72%) which is comparable to the rest of the industry.
AEHR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.11% | ||
| PM (TTM) | 37.17% | ||
| GM | 45.72% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.6%
GM growth 5Y6.37%
2. Health
2.1 Basic Checks
AEHR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AEHR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AEHR has more shares outstanding
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
An Altman-Z score of 10.30 indicates that AEHR is not in any danger for bankruptcy at the moment.
AEHR has a Altman-Z score of 10.30. This is amongst the best in the industry. AEHR outperforms 82.73% of its industry peers.
There is no outstanding debt for AEHR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.3 |
ROIC/WACC0
WACC10.08%
2.3 Liquidity
AEHR has a Current Ratio of 5.71. This indicates that AEHR is financially healthy and has no problem in meeting its short term obligations.
AEHR has a better Current ratio (5.71) than 85.45% of its industry peers.
A Quick Ratio of 3.07 indicates that AEHR has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.07, AEHR is doing good in the industry, outperforming 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.71 | ||
| Quick Ratio | 3.07 |
3. Growth
3.1 Past
AEHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.93%, which is quite impressive.
The Revenue for AEHR has decreased by -14.47% in the past year. This is quite bad
AEHR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.75% yearly.
EPS 1Y (TTM)63.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%333.33%
Revenue 1Y (TTM)-14.47%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%142.06%
3.2 Future
Based on estimates for the next years, AEHR will show a very negative growth in Earnings Per Share. The EPS will decrease by -27.28% on average per year.
Based on estimates for the next years, AEHR will show a quite strong growth in Revenue. The Revenue will grow by 11.10% on average per year.
EPS Next Y-87.46%
EPS Next 2Y-60.14%
EPS Next 3Y-27.28%
EPS Next 5YN/A
Revenue Next Year-8.29%
Revenue Next 2Y6%
Revenue Next 3Y11.1%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.32 indicates a reasonable valuation of AEHR.
Based on the Price/Earnings ratio, AEHR is valued cheaper than 94.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of AEHR to the average of the S&P500 Index (26.32), we can say AEHR is valued rather cheaply.
With a Price/Forward Earnings ratio of 58.41, AEHR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEHR indicates a slightly more expensive valuation: AEHR is more expensive than 63.64% of the companies listed in the same industry.
AEHR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 58.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AEHR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 168.17 |
4.3 Compensation for Growth
A cheap valuation may be justified as AEHR's earnings are expected to decrease with -27.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-60.14%
EPS Next 3Y-27.28%
5. Dividend
5.1 Amount
No dividends for AEHR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.32
-0.6 (-5.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners66.72%
Inst Owner Change-11.09%
Ins Owners5.54%
Ins Owner Change-1.13%
Market Cap337.00M
Analysts80
Price Target11.73 (3.62%)
Short Float %24.66%
Short Ratio10.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.8%
Min EPS beat(2)-43.98%
Max EPS beat(2)71.57%
EPS beat(4)3
Avg EPS beat(4)238.76%
Min EPS beat(4)-43.98%
Max EPS beat(4)684.31%
EPS beat(8)7
Avg EPS beat(8)125.61%
EPS beat(12)10
Avg EPS beat(12)124.14%
EPS beat(16)13
Avg EPS beat(16)102.56%
Revenue beat(2)1
Avg Revenue beat(2)-5.6%
Min Revenue beat(2)-12.25%
Max Revenue beat(2)1.05%
Revenue beat(4)3
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-12.25%
Max Revenue beat(4)5.7%
Revenue beat(8)5
Avg Revenue beat(8)0.29%
Revenue beat(12)8
Avg Revenue beat(12)3.61%
Revenue beat(16)11
Avg Revenue beat(16)3.83%
PT rev (1m)0%
PT rev (3m)-39.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-110.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-46.43%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-39.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 58.41 | ||
| P/S | 5.48 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.71 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 168.17 |
EPS(TTM)1
EY8.83%
EPS(NY)0.19
Fwd EY1.71%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS2.07
BVpS4.17
TBVpS3.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.69% | ||
| ROE | 18.4% | ||
| ROCE | 0.05% | ||
| ROIC | 0.04% | ||
| ROICexc | 0.05% | ||
| ROICexgc | 0.07% | ||
| OM | 0.11% | ||
| PM (TTM) | 37.17% | ||
| GM | 45.72% | ||
| FCFM | N/A |
ROA(3y)18.64%
ROA(5y)6.59%
ROE(3y)22.5%
ROE(5y)5.98%
ROIC(3y)10.57%
ROIC(5y)N/A
ROICexc(3y)24.63%
ROICexc(5y)N/A
ROICexgc(3y)24.63%
ROICexgc(5y)N/A
ROCE(3y)13.38%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.6%
GM growth 5Y6.37%
F-Score3
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 126.07% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.71 | ||
| Quick Ratio | 3.07 | ||
| Altman-Z | 10.3 |
F-Score3
WACC10.08%
ROIC/WACC0
Cap/Depr(3y)183.9%
Cap/Depr(5y)133.6%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.23%
Profit Quality(3y)24.66%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%333.33%
EPS Next Y-87.46%
EPS Next 2Y-60.14%
EPS Next 3Y-27.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.47%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%142.06%
Revenue Next Year-8.29%
Revenue Next 2Y6%
Revenue Next 3Y11.1%
Revenue Next 5YN/A
EBIT growth 1Y-99.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year336.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-303.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-214.95%
OCF growth 3YN/A
OCF growth 5YN/A