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AEHR TEST SYSTEMS (AEHR) Stock Fundamental Analysis

NASDAQ:AEHR - Nasdaq - US00760J1088 - Common Stock - Currency: USD

18.2  -0.61 (-3.24%)

After market: 18.3 +0.1 (+0.55%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AEHR. AEHR was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While AEHR has a great health rating, its profitability is only average at the moment. AEHR is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

AEHR had positive earnings in the past year.
In the past year AEHR has reported a negative cash flow from operations.
In multiple years AEHR reported negative net income over the last 5 years.
In multiple years AEHR reported negative operating cash flow during the last 5 years.
AEHR Yearly Net Income VS EBIT VS OCF VS FCFAEHR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M 30M

1.2 Ratios

AEHR's Return On Assets of 15.69% is amongst the best of the industry. AEHR outperforms 90.00% of its industry peers.
With an excellent Return On Equity value of 18.40%, AEHR belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.04%, AEHR is in line with its industry, outperforming 45.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AEHR is in line with the industry average of 10.64%.
The 3 year average ROIC (10.57%) for AEHR is well above the current ROIC(0.04%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 15.69%
ROE 18.4%
ROIC 0.04%
ROA(3y)18.64%
ROA(5y)6.59%
ROE(3y)22.5%
ROE(5y)5.98%
ROIC(3y)10.57%
ROIC(5y)N/A
AEHR Yearly ROA, ROE, ROICAEHR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 400 600 800

1.3 Margins

AEHR has a Profit Margin of 37.17%. This is amongst the best in the industry. AEHR outperforms 95.45% of its industry peers.
With a Operating Margin value of 0.11%, AEHR perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
The Gross Margin of AEHR (45.72%) is comparable to the rest of the industry.
AEHR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 0.11%
PM (TTM) 37.17%
GM 45.72%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.6%
GM growth 5Y6.37%
AEHR Yearly Profit, Operating, Gross MarginsAEHR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

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8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEHR is destroying value.
AEHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AEHR Yearly Shares OutstandingAEHR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
AEHR Yearly Total Debt VS Total AssetsAEHR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

2.2 Solvency

AEHR has an Altman-Z score of 16.63. This indicates that AEHR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 16.63, AEHR belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
There is no outstanding debt for AEHR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 16.63
ROIC/WACC0
WACC11.29%
AEHR Yearly LT Debt VS Equity VS FCFAEHR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

2.3 Liquidity

AEHR has a Current Ratio of 5.71. This indicates that AEHR is financially healthy and has no problem in meeting its short term obligations.
AEHR's Current ratio of 5.71 is amongst the best of the industry. AEHR outperforms 84.55% of its industry peers.
AEHR has a Quick Ratio of 3.07. This indicates that AEHR is financially healthy and has no problem in meeting its short term obligations.
AEHR has a better Quick ratio (3.07) than 63.64% of its industry peers.
Industry RankSector Rank
Current Ratio 5.71
Quick Ratio 3.07
AEHR Yearly Current Assets VS Current LiabilitesAEHR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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5

3. Growth

3.1 Past

The earnings per share for AEHR have decreased strongly by -87.70% in the last year.
AEHR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 243890.10% yearly.
EPS 1Y (TTM)-87.7%
EPS 3Y-27.89%
EPS 5Y243890.1%
EPS Q2Q%-101.19%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.13%

3.2 Future

Based on estimates for the next years, AEHR will show a very strong growth in Earnings Per Share. The EPS will grow by 76.86% on average per year.
The Revenue is expected to grow by 20.17% on average over the next years. This is a very strong growth
EPS Next Y-15%
EPS Next 2Y76.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.28%
Revenue Next 2Y20.17%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
AEHR Yearly Revenue VS EstimatesAEHR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M 80M
AEHR Yearly EPS VS EstimatesAEHR Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 121.33, which means the current valuation is very expensive for AEHR.
AEHR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.48. AEHR is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 142.75, the valuation of AEHR can be described as expensive.
66.36% of the companies in the same industry are cheaper than AEHR, based on the Price/Forward Earnings ratio.
AEHR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.04.
Industry RankSector Rank
PE 121.33
Fwd PE 142.75
AEHR Price Earnings VS Forward Price EarningsAEHR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AEHR.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 291.63
AEHR Per share dataAEHR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

A more expensive valuation may be justified as AEHR's earnings are expected to grow with 76.86% in the coming years.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y76.86%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

AEHR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AEHR TEST SYSTEMS

NASDAQ:AEHR (8/8/2025, 8:18:10 PM)

After market: 18.3 +0.1 (+0.55%)

18.2

-0.61 (-3.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)07-08 2025-07-08/amc
Earnings (Next)10-08 2025-10-08
Inst Owners66.72%
Inst Owner Change0.5%
Ins Owners5.54%
Ins Owner Change8.63%
Market Cap544.54M
Analysts80
Price Target15.3 (-15.93%)
Short Float %23.52%
Short Ratio4.6
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.8%
Min EPS beat(2)-43.98%
Max EPS beat(2)71.57%
EPS beat(4)3
Avg EPS beat(4)238.76%
Min EPS beat(4)-43.98%
Max EPS beat(4)684.31%
EPS beat(8)7
Avg EPS beat(8)125.61%
EPS beat(12)10
Avg EPS beat(12)124.14%
EPS beat(16)13
Avg EPS beat(16)102.56%
Revenue beat(2)1
Avg Revenue beat(2)-5.6%
Min Revenue beat(2)-12.25%
Max Revenue beat(2)1.05%
Revenue beat(4)3
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-12.25%
Max Revenue beat(4)5.7%
Revenue beat(8)5
Avg Revenue beat(8)0.29%
Revenue beat(12)8
Avg Revenue beat(12)3.61%
Revenue beat(16)11
Avg Revenue beat(16)3.83%
PT rev (1m)30.43%
PT rev (3m)30.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)1.44%
Valuation
Industry RankSector Rank
PE 121.33
Fwd PE 142.75
P/S 8.86
P/FCF N/A
P/OCF N/A
P/B 4.38
P/tB 5.32
EV/EBITDA 291.63
EPS(TTM)0.15
EY0.82%
EPS(NY)0.13
Fwd EY0.7%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS2.05
BVpS4.15
TBVpS3.42
PEG (NY)N/A
PEG (5Y)0
Profitability
Industry RankSector Rank
ROA 15.69%
ROE 18.4%
ROCE 0.05%
ROIC 0.04%
ROICexc 0.05%
ROICexgc 0.07%
OM 0.11%
PM (TTM) 37.17%
GM 45.72%
FCFM N/A
ROA(3y)18.64%
ROA(5y)6.59%
ROE(3y)22.5%
ROE(5y)5.98%
ROIC(3y)10.57%
ROIC(5y)N/A
ROICexc(3y)24.63%
ROICexc(5y)N/A
ROICexgc(3y)24.63%
ROICexgc(5y)N/A
ROCE(3y)13.38%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.6%
GM growth 5Y6.37%
F-Score3
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 126.07%
Cap/Sales 3.61%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.71
Quick Ratio 3.07
Altman-Z 16.63
F-Score3
WACC11.29%
ROIC/WACC0
Cap/Depr(3y)183.9%
Cap/Depr(5y)133.6%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.23%
Profit Quality(3y)24.66%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-87.7%
EPS 3Y-27.89%
EPS 5Y243890.1%
EPS Q2Q%-101.19%
EPS Next Y-15%
EPS Next 2Y76.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.13%
Revenue Next Year-1.28%
Revenue Next 2Y20.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-99.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year336.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-303.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-214.95%
OCF growth 3YN/A
OCF growth 5YN/A