inTEST (NYSEAM:INTT) - Share price, News & Analysis

Q: What is the Fair Price of INTT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

INTT ($6.6) is trading below our estimate of [[fair value]] ($63.1)

INTT fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	4/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

INTT Stock Overview

inTEST Corporation supplies test and process solutions for use in manufacturing and testing in automotive, defense/aerospace, industrial, life sciences, security, and semiconductor markets worldwide.

Rewards

Trading at 89.5% below our estimate of its fair value

Earnings are forecast to grow 40.45% per year

Earnings grew by 129.6% over the past year

Risk Analysis

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($70M)

inTEST Competitors

Amtech Systems

NasdaqGS:ASYS

US$101.2m

SunHydrogen

OTCPK:HYSR

US$102.5m

Aehr Test Systems

NasdaqCM:AEHR

US$186.8m

Rubicon Technology

NasdaqCM:RBCN

US$22.3m

Price History & Performance

Summary of all time highs, changes and price drops for inTEST
Historical stock prices
Current Share Price	US$6.60
52 Week High	US$17.65
52 Week Low	US$6.07
Beta	1.99
1 Month Change	-14.62%
3 Month Change	-39.28%
1 Year Change	-61.20%
3 Year Change	38.80%
5 Year Change	-2.22%
Change since IPO	-13.44%

Shareholder Returns

	INTT	US Semiconductor	US Market
7D	-3.4%	-9.5%	-2.5%
1Y	-61.2%	-24.2%	-21.2%

Return vs Industry: INTT underperformed the US Semiconductor industry which returned -24.2% over the past year.

Return vs Market: INTT underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is INTT's price volatile compared to industry and market?
INTT volatility
INTT Average Weekly Movement	7.7%
Semiconductor Industry Average Movement	8.7%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: INTT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: INTT's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	310	Nick Grant	https://www.intest.com

inTEST Corporation supplies test and process solutions for use in manufacturing and testing in automotive, defense/aerospace, industrial, life sciences, security, and semiconductor markets worldwide. The company operates through two segments, Thermal Products (Thermal) and Electromechanical Semiconductor Products (EMS). The Thermal segment offers ThermoStream products that are used in the semi market as a stand-alone temperature management tool, or in various electronic test applications; Thermal Chambers; Thermal Platforms; Thermonics temperature conditioning products that provide tempered gas or fluid; ultra-cold storage solutions, including biomedical freezers, refrigerators, and mobile storage solutions; EKOHEAT and EASYHEAT induction heating systems; and digital streaming and image capturing solutions.

inTEST Fundamentals Summary

How do inTEST's earnings and revenue compare to its market cap?
INTT fundamental statistics
Market Cap	US$70.28m
Earnings (TTM)	US$5.65m
Revenue (TTM)	US$89.40m

12.4x

P/E Ratio

0.8x

P/S Ratio

Is INTT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INTT income statement (TTM)
Revenue	US$89.40m
Cost of Revenue	US$46.69m
Gross Profit	US$42.72m
Other Expenses	US$37.07m
Earnings	US$5.65m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.53
Gross Margin	47.78%
Net Profit Margin	6.32%
Debt/Equity Ratio	34.3%

How did INTT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is INTT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INTT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for INTT. This is calculated by dividing INTT's market cap by their current preferred multiple.
What is INTT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$70.28m

INTT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	6.9x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does INTT's PE Ratio compare to its peers?

INTT PE Ratio vs Peers

The above table shows the PE ratio for INTT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	25.2x
ASYS Amtech Systems	25.3x	98.4%	US$101.2m
HYSR SunHydrogen	0.7x	n/a	US$102.5m
AEHR Aehr Test Systems	44.2x	72.0%	US$186.8m
RBCN Rubicon Technology	30.4x	n/a	US$22.3m
INTT inTEST	12.4x	40.4%	US$70.3m

Forward PE

Price-To-Earnings vs Peers: INTT is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (25.2x).

Price to Earnings Ratio vs Industry

How does INTT's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: INTT is good value based on its Price-To-Earnings Ratio (12.4x) compared to the US Semiconductor industry average (16.7x)

Price to Earnings Ratio vs Fair Ratio

What is INTT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

INTT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.4x
Fair PE Ratio	23.4x

Price-To-Earnings vs Fair Ratio: INTT is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.4x).

Share Price vs Fair Value

What is the Fair Price of INTT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: INTT ($6.6) is trading below our estimate of fair value ($63.1)

Significantly Below Fair Value: INTT is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: INTT is good value based on its PEG Ratio (0.3x)

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Future Growth

How is inTEST forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

40.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: INTT's forecast earnings growth (40.4% per year) is above the savings rate (1.9%).

Earnings vs Market: INTT's earnings (40.4% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: INTT's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INTT's revenue (19.4% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: INTT's revenue (19.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if INTT's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has inTEST performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INTT has a large one-off loss of $2.2M impacting its March 31 2022 financial results.

Growing Profit Margin: INTT's current net profit margins (6.3%) are higher than last year (4%).

Past Earnings Growth Analysis

Earnings Trend: INTT's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: INTT's earnings growth over the past year (129.6%) exceeds its 5-year average (9% per year).

Earnings vs Industry: INTT earnings growth over the past year (129.6%) exceeded the Semiconductor industry 70.4%.

Return on Equity

High ROE: INTT's Return on Equity (10.1%) is considered low.

Discover strong past performing companies

Financial Health

How is inTEST's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: INTT's short term assets ($51.3M) exceed its short term liabilities ($24.1M).

Long Term Liabilities: INTT's short term assets ($51.3M) exceed its long term liabilities ($22.8M).

Debt to Equity History and Analysis

Debt Level: INTT's net debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if INTT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: INTT's debt is well covered by operating cash flow (43.6%).

Interest Coverage: INTT's interest payments on its debt are well covered by EBIT (64.6x coverage).

Balance Sheet

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Dividend

What is inTEST current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate INTT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate INTT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INTT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INTT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as INTT has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure

CEO

Nick Grant (52 yo)

1.92yrs

Tenure

US$1,478,834

Compensation

Mr. Richard N. Grant, Jr., also known as Nick, has been President, Chief Executive Officer and Director of inTEST Corporation since August 24, 2020. Mr. Grant served as Senior Vice President Americas Regio...

CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD1.48M) is above average for companies of similar size in the US market ($USD800.58K).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: INTT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: INTT's board of directors are considered experienced (3.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: INTT insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31