AEHR TEST SYSTEMS (AEHR)
US00760J1088 - Common Stock
We assign a fundamental rating of 6 out of 10 to AEHR. AEHR was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. AEHR has an excellent financial health rating, but there are some minor concerns on its profitability. AEHR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AEHR was profitable.
AEHR had a positive operating cash flow in the past year.
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
AEHR's Return On Assets of 19.98% is amongst the best of the industry. AEHR outperforms 95.37% of its industry peers.
AEHR has a better Return On Equity (23.79%) than 87.96% of its industry peers.
With a Return On Invested Capital value of 3.71%, AEHR perfoms like the industry average, outperforming 56.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AEHR is in line with the industry average of 11.24%.
The 3 year average ROIC (10.57%) for AEHR is well above the current ROIC(3.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 23.79% | ||
| ROIC | 3.71% |
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's Profit Margin of 49.63% is amongst the best of the industry. AEHR outperforms 97.22% of its industry peers.
AEHR has a Operating Margin of 10.43%. This is in the better half of the industry: AEHR outperforms 64.81% of its industry peers.
AEHR has a better Gross Margin (50.48%) than 64.81% of its industry peers.
AEHR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 49.63% | ||
| GM | 50.48% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEHR is destroying value.
AEHR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AEHR has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 11.84 indicates that AEHR is not in any danger for bankruptcy at the moment.
AEHR's Altman-Z score of 11.84 is amongst the best of the industry. AEHR outperforms 81.48% 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 | 11.84 |
ROIC/WACC0.24
WACC15.53%
2.3 Liquidity
AEHR has a Current Ratio of 6.03. This indicates that AEHR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.03, AEHR belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
AEHR has a Quick Ratio of 3.24. This indicates that AEHR is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.24, AEHR is doing good in the industry, outperforming 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.03 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
AEHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.05%, which is quite impressive.
AEHR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.63%.
The Revenue has been growing by 25.75% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)52.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-61.11%
Revenue 1Y (TTM)-21.63%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%-36.39%
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 -11.47% on average per year.
The Revenue is expected to grow by 24.49% on average over the next years. This is a very strong growth
EPS Next Y-74.92%
EPS Next 2Y-37.31%
EPS Next 3Y-11.47%
EPS Next 5YN/A
Revenue Next Year8.83%
Revenue Next 2Y18.89%
Revenue Next 3Y24.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AEHR is valuated correctly with a Price/Earnings ratio of 12.84.
Based on the Price/Earnings ratio, AEHR is valued cheaper than 93.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, AEHR is valued rather cheaply.
The Price/Forward Earnings ratio is 29.72, which means the current valuation is very expensive for AEHR.
The rest of the industry has a similar Price/Forward Earnings ratio as AEHR.
When comparing the Price/Forward Earnings ratio of AEHR to the average of the S&P500 Index (22.83), we can say AEHR is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 29.72 |
4.2 Price Multiples
AEHR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 55.02 |
4.3 Compensation for Growth
AEHR has a very decent profitability rating, which may justify a higher PE ratio.
AEHR's earnings are expected to decrease with -11.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.31%
EPS Next 3Y-11.47%
5. Dividend
5.1 Amount
AEHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AEHR TEST SYSTEMS
NASDAQ:AEHR (12/20/2024, 8:00:00 PM)
After market: 14.2 -0.05 (-0.35%)14.25
+0.93 (+6.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners66.94%
Inst Owner Change6.34%
Ins Owners5.49%
Ins Owner Change11.64%
Market Cap422.23M
Analysts80
Price Target25.5 (78.95%)
Short Float %23.07%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)463.73%
Min EPS beat(2)243.14%
Max EPS beat(2)684.31%
EPS beat(4)4
Avg EPS beat(4)240.52%
Min EPS beat(4)15.97%
Max EPS beat(4)684.31%
EPS beat(8)8
Avg EPS beat(8)134.23%
EPS beat(12)10
Avg EPS beat(12)123.56%
EPS beat(16)12
Avg EPS beat(16)86.13%
Revenue beat(2)2
Avg Revenue beat(2)5.55%
Min Revenue beat(2)5.39%
Max Revenue beat(2)5.7%
Revenue beat(4)3
Avg Revenue beat(4)2.28%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)5.7%
Revenue beat(8)6
Avg Revenue beat(8)4.05%
Revenue beat(12)8
Avg Revenue beat(12)4.81%
Revenue beat(16)10
Avg Revenue beat(16)0.05%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-78.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 29.72 | ||
| P/S | 7.19 | ||
| P/FCF | N/A | ||
| P/OCF | 1789.1 | ||
| P/B | 3.45 | ||
| P/tB | 4.21 | ||
| EV/EBITDA | 55.02 |
EPS(TTM)1.11
EY7.79%
EPS(NY)0.48
Fwd EY3.36%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)0.01
OCFY0.06%
SpS1.98
BVpS4.13
TBVpS3.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 23.79% | ||
| ROCE | 4.69% | ||
| ROIC | 3.71% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 6.87% | ||
| OM | 10.43% | ||
| PM (TTM) | 49.63% | ||
| GM | 50.48% | ||
| 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-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 77.08% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 3.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.03 | ||
| Quick Ratio | 3.24 | ||
| Altman-Z | 11.84 |
F-Score5
WACC15.53%
ROIC/WACC0.24
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)52.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-61.11%
EPS Next Y-74.92%
EPS Next 2Y-37.31%
EPS Next 3Y-11.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.63%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%-36.39%
Revenue Next Year8.83%
Revenue Next 2Y18.89%
Revenue Next 3Y24.49%
Revenue Next 5YN/A
EBIT growth 1Y-64.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year336.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-109.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-95.37%
OCF growth 3YN/A
OCF growth 5YN/A