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

Aehr Test Systems and Photronics, Inc. are both Semiconductor Equipment & Materials companies. Aehr Test Systems and Photronics, Inc. are of similar size ($1.6B and $1.5B). Aehr Test Systems has negative trailing earnings, so its P/E is not meaningful; Photronics, Inc. trades at 9.0×. 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 9.04 33.70
P/S 30.47 1.73 4.22
P/B 6.94 0.86 2.94
Price to free cash flow n/m 13.63 31.49
EV/EBITDA n/m 3.03 22.64
EV/Sales 28.18 0.96 4.97
Earnings yield (0.48%) 11.06% 2.02%
Free cash flow yield (0.35%) 7.33% 2.27%

Profitability

Metric AEHR PLAB Semiconductor Equipment & Materials median
Gross margin 35.30% 33.65% 46.86%
Operating margin (28.30%) 22.46% 12.02%
Net margin (14.25%) 19.04% 10.16%
Free cash flow margin (10.75%) 12.74% 6.73%
Return on equity (4.16%) 10.06% 5.31%
Return on assets (3.61%) 8.82% 4.10%
Return on invested capital (8.57%) 11.32% 6.36%

Growth

Metric AEHR PLAB Semiconductor Equipment & Materials median
Revenue growth (TTM) (15.21%) 1.25% 15.82%
EPS growth (last fiscal year) (76.92%) 9.09% (4.56%)
Revenue growth, 5-year CAGR 24.67% 6.85% 10.11%
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 3.56
Net debt to EBITDA 10.96 (2.06) (0.49)

Dividend

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

Size

Metric AEHR PLAB Semiconductor Equipment & Materials median
Market cap 1.61b 1.50b 3.04b

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