inTEST Corporation (INTT) | Investment Case

1. Company Snapshot

1.a. Company Description

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.

The EMS segment provides in2, Cobal, and LS series manipulators that hold various test heads and enable an operator to reposition a test head for alternate use with various probers or handlers on a test floor; and docking hardware products, which protect the interface contacts and ensure proper repeatable and precise alignment between the test head's interface board and the prober's probing assembly or the handler's test socket.This segment also offers tester interfaces that provide electrical connections between the tester and the wafer prober or integrated circuit (IC) handler; and scorpion flying probe test systems, which designs and manufactures robotics-based electronic test equipment, as well as provides application support services.Its products are used in production testing of wafers and specialized packaged ICs in back-end testing by semiconductor manufacturers.

The company markets and sells its products to semiconductor manufacturers, third-party foundries, test and assembly providers, and original equipment manufacturers.inTEST Corporation was incorporated in 1981 and is headquartered in Mount Laurel, New Jersey.

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1.b. Last Insights on INTT

inTEST Corporation's recent performance was positively driven by management's strategic initiatives, despite a reported Q3 loss of $0.02 per share. The company's President and CEO, Nick Grant, likely discussed growth strategies during the Q3 2025 earnings call. A share buyback program may be on the horizon, potentially reducing outstanding shares. According to Lake Street Capital Markets, the company faces challenges, but management's focus on innovation and customer needs may yield future growth. Northland Capital Markets and Oak Ridge Financial Services Group analysts also participated in the call.

1.c. Company Highlights

Last Price	7.87
Change Percentage	-1.62%
Open	8
Previous Close	8
Market Cap ( Millions)	98
Volume	19407
Year High	9.77
Year Low	5.24
M A 50	8.08
M A 200	7.27

FCF Yield	9.84%
Dividend Yield	0.00%
ROE	-2.25%
Debt / Equity	16.20%
Net Debt / EBIDTA	9.44%
Price To Book	0.94
Price Earnings Ratio	-42.38
Price To FCF	10.17
Price To sales	0.84
EV / EBITDA	34.58

2. inTEST Corporation's Q3 2025 Earnings: A Strong Order Book Amidst Technical Challenges

inTEST Corporation reported a revenue of $26.2 million for Q3 2025, lower than the previous quarter due to technical challenges that delayed approximately $2 million in shipments. Despite the revenue miss, the company's orders reached $37.6 million, the strongest level since Q2 2022. The gross profit decreased by $1 million to $11 million, and the gross margin declined 70 basis points to 41.9%. The net loss was $0.9 million or a loss of $0.08 per share, with an adjusted EBITDA of $0.4 million. The actual EPS came out at -$0.02, missing estimates of $0.04.

Publication Date: Nov -23

                                    📋 Highlights
                                    Orders Surge to $37.6M:
                                                —Highest since Q2 2022, with auto/EV segment leading growth to $14.6M (up from $7.3M).
Revenue Drops to $26.2M:
                                                —$2M shipment delays due to technical issues resolved and shipped; backlog rose $11.4M sequentially.
Gross Margin Falls to 41.9%:
                                                —$1M decline in profit, driven by lower volume, despite stable operating expenses at $12.2M.
Net Loss of $0.9M:
                                                —Loss of $0.08/share, but Adjusted EBITDA remained positive at $0.4M.
Q4 Guidance Optimistic:
                                                —Revenue projected at $30–$32M with 43% gross margin, offsetting Q3 slippage and signaling recovery.

                                

Segmental Performance and Order Growth

The auto/EV segment led the climb in orders, accounting for around 3/4 of the sequential growth and doubling to $14.6 million. Orders were up 34.2% year-over-year, driven by strength in auto/EV, industrial, defense/aerospace, and life sciences. The company's diversification strategy continues to pay off, with a strong funnel of opportunities and demand in some end markets beginning to recover. CEO Nick Grant highlighted that innovative new products are gaining traction, with multiple new orders for RF and oscilloscope technology from new systems at Acculogic.

Guidance and Outlook

The company expects revenue in the fourth quarter to rebound to a range of $30 million to $32 million, with a gross margin of approximately 43% and operating expenses of $12.3 million to $12.7 million. The guidance does not include potential impacts from non-operating expenses or additional acquisitions. Analysts estimate next year's revenue growth at 11.9%, indicating a positive outlook for the company's future performance.

Valuation Metrics

The company's current valuation metrics show a P/E Ratio of -40.65, P/B Ratio of 0.9, and P/S Ratio of 0.8. The EV/EBITDA ratio stands at 33.18, indicating a relatively high valuation. The company's return on equity (ROE) is -2.25%, and return on invested capital (ROIC) is -1.9%. With a Free Cash Flow Yield of 10.25%, the stock may be attractive to investors looking for value.

3. NewsRoom

inTEST Corporation (INTT) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

inTest Corporation (INTT) Reports Q3 Loss, Lags Revenue Estimates

Nov -05

Source: zacks.com

Fast-paced Momentum Stock inTest (INTT) Is Still Trading at a Bargain

Aug -13

Source: zacks.com

inTEST Corporation (INTT) Q2 2025 Earnings Call Transcript

Aug -06

Source: seekingalpha.com

inTEST (INTT) Q2 EPS Beats Estimates

Aug -06

Source: fool.com

inTest Corporation (INTT) Q2 Earnings and Revenues Surpass Estimates

Aug -06

Source: zacks.com

InTest Reports Orders Improved 10% and Gross Margin Expanded 110 basis points Sequentially to 42.6% for Second Quarter 2025

Aug -06

Source: businesswire.com

inTEST: Battling Market Headwinds

Jun -26

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.09%)

6. Segments

Process Technologies

Expected Growth: 8%

InTEST Corporation's Process Technologies segment growth is driven by increasing demand for semiconductor test and burn-in services, expansion into emerging markets, and strategic acquisitions. Additionally, the growing need for advanced packaging and wafer-level testing, as well as the rising adoption of electric and autonomous vehicles, contribute to the segment's 8% growth.

Electronic Test

Expected Growth: 9%

inTEST Corporation's Electronic Test segment growth is driven by increasing demand for 5G and IoT devices, rising adoption of artificial intelligence and machine learning, and growing need for semiconductor testing and inspection. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its 9% growth.

Environmental Technologies

Expected Growth: 11%

InTEST Corporation's Environmental Technologies segment growth is driven by increasing demand for eco-friendly solutions, stringent government regulations, and rising adoption of renewable energy sources. Additionally, growing concerns about climate change and air pollution are fueling investments in sustainable technologies, further propelling the segment's 11% growth.

7. Detailed Products

Thermal Test Fixtures

Custom-designed thermal test fixtures for testing semiconductor devices, including wafer-level and package-level testing

Cryogenic Test Systems

Cryogenic test systems for testing semiconductor devices at extremely low temperatures, enabling the development of advanced quantum computing and superconducting devices

Mechanical Test Fixtures

Custom-designed mechanical test fixtures for testing semiconductor devices, including wafer-level and package-level testing

Test Interface Products

Test interface products, including test sockets, contactors, and probe cards, for testing semiconductor devices

Thermal Management Systems

Thermal management systems for managing temperature in test and measurement applications, including thermal chambers and temperature forcing systems

8. inTEST Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for inTEST Corporation is moderate, as there are alternative products and services available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for inTEST Corporation is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for inTEST Corporation is moderate, as suppliers have some bargaining power due to the specialized nature of the products, but the company has a diversified supplier base.

Threat Of New Entrants

The threat of new entrants for inTEST Corporation is high, as the industry is attractive and there are low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for inTEST Corporation is high, as the industry is highly competitive, and companies are constantly competing on price, quality, and innovation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.67%
Debt Cost	4.60%
Equity Weight	87.33%
Equity Cost	13.99%
WACC	12.80%
Leverage	14.50%

11. Quality Control: inTEST Corporation passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

inTEST

A-Score: 4.1/10

Value: 6.7

Growth: 4.6

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

Everspin Technologies

A-Score: 4.0/10

Value: 1.4

Growth: 4.2

Quality: 5.2

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

Applied Optoelectronics

A-Score: 3.3/10

Value: 6.8

Growth: 0.8

Quality: 4.2

Yield: 0.0

Momentum: 8.0

Volatility: 0.3

1-Year Total Return ->

Transphorm

A-Score: 3.2/10

Value: 6.0

Growth: 3.3

Quality: 3.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

QuickLogic

A-Score: 3.2/10

Value: 6.6

Growth: 5.9

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

Alpha Omega Semi

A-Score: 2.4/10

Value: 4.8

Growth: 1.8

Quality: 3.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.98%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

12.80%

inTEST Corporation - US4611471008

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on INTT

1.c. Company Highlights

Higher Growth

Weak Momentum

Average Quality

Earnings Beats

Revenues Beats

Earnings Miss

Medium Volatility

Revenues Miss

Stable Momentum

Average Growth

Fairly Valued

Average Yield

2. inTEST Corporation's Q3 2025 Earnings: A Strong Order Book Amidst Technical Challenges

Segmental Performance and Order Growth

Guidance and Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.09%)

6. Segments

Process Technologies

Expected Growth: 8%

Electronic Test

Expected Growth: 9%

Environmental Technologies

Expected Growth: 11%

7. Detailed Products

Thermal Test Fixtures

Cryogenic Test Systems

Mechanical Test Fixtures

Test Interface Products

Thermal Management Systems

8. inTEST Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: inTEST Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.87$

Current Price

7.87$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA