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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AEHR had positive earnings in the past year.
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
AEHR has a Return On Assets of 19.98%. This is amongst the best in the industry. AEHR outperforms 95.37% of its industry peers.
The Return On Equity of AEHR (23.79%) is better than 87.04% of its industry peers.
AEHR has a Return On Invested Capital (3.71%) which is comparable to the rest of the industry.
AEHR had an Average Return On Invested Capital over the past 3 years of 10.57%. This is in line with the industry average of 11.05%.
The last Return On Invested Capital (3.71%) for AEHR is well below the 3 year average (10.57%), which needs to be investigated, but indicates that AEHR had better years and this may not be a problem.
| 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 has a better Profit Margin (49.63%) than 97.22% of its industry peers.
The Operating Margin of AEHR (10.43%) is better than 65.74% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEHR is destroying value.
The number of shares outstanding for AEHR has been increased compared to 1 year ago.
AEHR has more shares outstanding than it did 5 years ago.
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
AEHR has an Altman-Z score of 9.90. This indicates that AEHR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 9.90, AEHR is doing good in the industry, outperforming 79.63% of the companies in the same industry.
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 | 9.9 |
ROIC/WACC0.25
WACC14.76%
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.
AEHR has a Current ratio of 6.03. This is amongst the best in the industry. AEHR outperforms 86.11% of its industry peers.
A Quick Ratio of 3.24 indicates that AEHR has no problem at all paying its short term obligations.
AEHR has a Quick ratio of 3.24. This is in the better half of the industry: AEHR outperforms 64.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.03 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.05% over the past year.
AEHR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.63%.
AEHR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.75% yearly.
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
AEHR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.47% yearly.
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
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.54, the valuation of AEHR can be described as very reasonable.
Based on the Price/Earnings ratio, AEHR is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AEHR to the average of the S&P500 Index (28.96), we can say AEHR is valued rather cheaply.
The Price/Forward Earnings ratio is 24.41, which indicates a rather expensive current valuation of AEHR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEHR indicates a somewhat cheap valuation: AEHR is cheaper than 64.81% of the companies listed in the same industry.
AEHR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 24.41 |
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 | 44.21 |
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
No dividends for AEHR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AEHR TEST SYSTEMS
NASDAQ:AEHR (11/21/2024, 8:10:56 PM)
Premarket: 11.66 -0.04 (-0.34%)11.7
+0.43 (+3.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
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Ins Owners
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Market Cap346.67M
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 24.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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OCF(TTM)
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SpS
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PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 23.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.43% | ||
| PM (TTM) | 49.63% | ||
| GM | 50.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
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ROCE(5y)
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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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.03 | ||
| Quick Ratio | 3.24 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)52.05%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-74.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.63%
Revenue growth 3Y58.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
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Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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