Aehr Test Systems
Find Ratings ReportsAEHR TEST SYSTEMS's gross profit margin for the second quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. AEHR TEST SYSTEMS is extremely liquid. Currently, the Quick Ratio is 7.18 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 53.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q2 FY23 | Q2 FY22 |
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Net Sales ($mil) | 21.43 | 14.82 |
EBITDA ($mil) | 5.61 | 3.66 |
EBIT ($mil) | 5.47 | 3.49 |
Net Income ($mil) | 6.09 | 3.73 |
Balance Sheet | Q2 FY23 | Q2 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 50.51 | 36.58 |
Total Assets ($mil) | 101.18 | 67.54 |
Total Debt ($mil) | 6.41 | 0.62 |
Equity ($mil) | 87.15 | 56.67 |
Profitability | Q2 FY23 | Q2 FY22 |
---|---|---|
Gross Profit Margin | 51.81 | 54.61 |
EBITDA Margin | 26.19 | 24.73 |
Operating Margin | 25.51 | 23.52 |
Sales Turnover | 0.81 | 0.9 |
Return on Assets | 20.76 | 18.28 |
Return on Equity | 24.1 | 21.8 |
Debt | Q2 FY23 | Q2 FY22 |
---|---|---|
Current Ratio | 11.53 | 6.1 |
Debt/Capital | 0.07 | 0.01 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q2 FY23 | Q2 FY22 |
---|---|---|
Shares outstanding (mil) | 28.83 | 27.73 |
Div / share | 0.0 | 0.0 |
EPS | 0.2 | 0.13 |
Book value / share | 3.02 | 2.04 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1551078.0 | 1160819.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.80 indicates valuation on par with the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, AEHR TEST SYSTEMS proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AEHR 20.42 | Peers 53.34 | AEHR 52.29 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AEHR is trading at a significant discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AEHR is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AEHR 10.58 | Peers 26.06 | AEHR 0.39 | Peers 1.95 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AEHR is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AEHR trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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AEHR 4.80 | Peers 23.59 | AEHR 65.11 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AEHR is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AEHR is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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AEHR 5.13 | Peers 14.13 | AEHR 33.52 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AEHR is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. AEHR has a sales growth rate that exceeds its peers. |
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