Aehr Test Systems (AEHR) vs Photronics, Inc. (PLAB)

Aehr Test Systems and Photronics, Inc. are both Semiconductor Equipment & Materials companies. Aehr Test Systems is the larger, with a market value of $3.3B against $1.8B — 1.8× the size. Aehr Test Systems has negative trailing earnings, so its P/E is not meaningful; Photronics, Inc. trades at 10.7×. Photronics, Inc. grew revenue faster over the last twelve months: 1.25% against −15.2%. Photronics, Inc. has the higher net margin (19.0% vs −14.3%) and the higher return on invested capital (11.3% vs −8.57%). Across the 19 metrics below, Photronics, Inc. leads on 15 and Aehr Test Systems on 4.

Valuation

Metric AEHR PLAB Semiconductor Equipment & Materials median
P/E n/m 10.67 54.39
P/S 64.03 2.04 6.08
P/B 14.58 1.01 4.89
Price to free cash flow n/m 16.08 60.92
EV/EBITDA n/m 4.02 39.95
EV/Sales 61.83 1.27 6.36
Earnings yield (0.23%) 9.38% 1.14%
Free cash flow yield (0.17%) 6.22% 1.28%

Profitability

Metric AEHR PLAB Semiconductor Equipment & Materials median
Gross margin 35.30% 33.65% 43.95%
Operating margin (28.30%) 22.46% 10.32%
Net margin (14.25%) 19.04% 7.45%
Free cash flow margin (10.75%) 12.74% 6.77%
Return on equity (4.16%) 10.06% 4.78%
Return on assets (3.61%) 8.82% 3.62%
Return on invested capital (8.57%) 11.32% 6.10%

Growth

Metric AEHR PLAB Semiconductor Equipment & Materials median
Revenue growth (TTM) (15.21%) 1.25% 14.60%
EPS growth (last fiscal year) (76.92%) 9.09% —
Revenue growth, 5-year CAGR 24.67% 6.85% 8.85%
Net income growth, 5-year CAGR 0.00% 32.17% 0.00%

Health

Metric AEHR PLAB Semiconductor Equipment & Materials median
Debt to equity 0.00 0.00 0.09
Current ratio 10.33 4.94 3.66
Net debt to EBITDA 10.96 (2.06) (0.49)

Dividend

Metric AEHR PLAB Semiconductor Equipment & Materials median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric AEHR PLAB Semiconductor Equipment & Materials median
Market cap 3.26b 1.78b 4.63b

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