Aehr Test Systems (AEHR) vs IPG Photonics Corporation (IPGP)

Aehr Test Systems and IPG Photonics Corporation are both Semiconductor Equipment & Materials companies. IPG Photonics Corporation is the larger, with a market value of $2.6B against $1.6B — 1.6× the size. Aehr Test Systems has negative trailing earnings, so its P/E is not meaningful; IPG Photonics Corporation trades at 65.0×. IPG Photonics Corporation grew revenue faster over the last twelve months: 14.8% against −15.2%. IPG Photonics Corporation has the higher net margin (3.65% vs −14.3%) and the higher return on invested capital (1.06% vs −8.57%). Across the 18 metrics below, IPG Photonics Corporation leads on 15 and Aehr Test Systems on 3.

Valuation

Metric AEHR IPGP Semiconductor Equipment & Materials median
P/E n/m 64.97 33.70
P/S 30.47 2.39 4.22
P/B 6.94 1.23 2.94
Price to free cash flow n/m 70.44 31.49
EV/EBITDA n/m 23.54 22.64
EV/Sales 28.18 1.58 4.97
Earnings yield (0.48%) 1.54% 2.02%
Free cash flow yield (0.35%) 1.42% 2.27%

Profitability

Metric AEHR IPGP Semiconductor Equipment & Materials median
Gross margin 35.30% 38.71% 46.86%
Operating margin (28.30%) 1.89% 12.02%
Net margin (14.25%) 3.65% 10.16%
Free cash flow margin (10.75%) 3.39% 6.73%
Return on equity (4.16%) 1.90% 5.31%
Return on assets (3.61%) 1.66% 4.10%
Return on invested capital (8.57%) 1.06% 6.36%

Growth

Metric AEHR IPGP Semiconductor Equipment & Materials median
Revenue growth (TTM) (15.21%) 14.78% 15.82%
EPS growth (last fiscal year) (76.92%) 117.85% (4.56%)
Revenue growth, 5-year CAGR 24.67% (3.52%) 10.11%
Net income growth, 5-year CAGR 0.00% (27.90%) 0.00%

Health

Metric AEHR IPGP Semiconductor Equipment & Materials median
Debt to equity 0.00 0.00 0.09
Current ratio 10.33 5.99 3.56
Net debt to EBITDA 10.96 (12.73) (0.49)

Dividend

Metric AEHR IPGP Semiconductor Equipment & Materials median
Dividend yield — — 0.59%
Payout ratio — — 0.16

Size

Metric AEHR IPGP Semiconductor Equipment & Materials median
Market cap 1.61b 2.64b 3.04b

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