Declining Stock and Solid Fundamentals: Is The Market Wrong About Aehr Test Systems, Inc. (NASDAQ:AEHR)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Aehr Test Systems, Inc. (NASDAQ:AEHR)?
It is hard to get excited after looking at Aehr Test Systems' (NASDAQ:AEHR) recent performance, when its stock has declined 31% over the past month. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Aehr Test Systems' ROE today.
看了Aehr Test Systems(纳斯达克股票代码:AEHR)最近的表现,很难感到兴奋,当时其股票在过去一个月中下跌了31%。但是,如果你密切关注,你可能会发现,鉴于市场通常会奖励财务状况良好的公司,其强劲的财务状况可能意味着该股的长期价值可能会增加。特别是,我们今天将关注Aehr测试系统的投资回报率。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
ROE或股本回报率是评估公司如何有效地从股东那里获得的投资中获得回报的有用工具。简而言之,它用于评估公司相对于其股权资本的盈利能力。
How To Calculate Return On Equity?
如何计算股本回报率?
ROE can be calculated by using the formula:
ROE 可以通过使用以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营)÷ 股东权益
So, based on the above formula, the ROE for Aehr Test Systems is:
因此,根据上述公式,Aehr测试系统的投资回报率为:
24% = US$29m ÷ US$122m (Based on the trailing twelve months to August 2024).
24% = 2900万美元 ÷ 1.22亿美元(基于截至2024年8月的过去十二个月)。
The 'return' is the profit over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.24 in profit.
“回报” 是过去十二个月的利润。另一种思考方式是,每持有价值1美元的股权,该公司就能获得0.24美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
我们已经确定,投资回报率是衡量公司未来收益的有效盈利指标。根据公司选择将多少利润进行再投资或 “保留”,我们便能够评估公司未来创造利润的能力。假设其他条件都一样,与功能不相同的公司相比,具有更高股本回报率和更高利润保留率的公司通常具有更高的增长率。
Aehr Test Systems' Earnings Growth And 24% ROE
Aehr Test Systems的收益增长和24%的投资回报率
Firstly, we acknowledge that Aehr Test Systems has a significantly high ROE. Secondly, even when compared to the industry average of 11% the company's ROE is quite impressive. Under the circumstances, Aehr Test Systems' considerable five year net income growth of 69% was to be expected.
首先,我们承认Aehr测试系统的投资回报率非常高。其次,即使与行业平均水平的11%相比,该公司的投资回报率也相当可观。在这种情况下,Aehr Test Systems的五年净收入可观增长69%是可以预料的。
Next, on comparing with the industry net income growth, we found that Aehr Test Systems' growth is quite high when compared to the industry average growth of 21% in the same period, which is great to see.
接下来,与行业净收入增长相比,我们发现,与同期21%的行业平均增长率相比,Aehr Test Systems的增长相当高,这真是太好了。
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Aehr Test Systems''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增长是股票估值的重要因素。对于投资者来说,重要的是要知道市场是否对公司的预期收益增长(或下降)进行了定价。通过这样做,他们将知道股票是走向清澈的蓝色海水还是沼泽水域在等着呢。如果你想知道Aehr Test Systems的估值,可以看看这个衡量其与行业相比的市盈率指标。
Is Aehr Test Systems Efficiently Re-investing Its Profits?
Aehr 测试系统能否有效地将其利润再投资?
Given that Aehr Test Systems doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鉴于Aehr Test Systems不向其股东支付任何定期股息,我们推断该公司一直在将其所有利润再投资以发展业务。
Conclusion
结论
In total, we are pretty happy with Aehr Test Systems' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Let's not forget, business risk is also one of the factors that affects the price of the stock. So this is also an important area that investors need to pay attention to before making a decision on any business. Our risks dashboard would have the 3 risks we have identified for Aehr Test Systems.
总的来说,我们对Aehr测试系统的性能非常满意。具体而言,我们喜欢该公司以高回报率再投资其利润的很大一部分。当然,这导致该公司的收益大幅增长。考虑到每股收益如何影响长期股价,如果该公司继续以现有方式增长收益,这可能会对其股价产生积极影响。别忘了,商业风险也是影响股票价格的因素之一。因此,这也是投资者在对任何业务做出决定之前需要注意的重要领域。我们的风险仪表板将包含我们为Aehr测试系统确定的3种风险。
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