AEHR TEST SYSTEMS (AEHR) Stock Fundamental Analysis
NASDAQ:AEHR - Nasdaq - US00760J1088 - Common Stock - Currency: USD
AEHR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. AEHR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, AEHR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AEHR was profitable.
In the past year AEHR has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: AEHR reported negative net income in multiple years.
In multiple years AEHR reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.69%, AEHR belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
AEHR's Return On Equity of 18.40% is amongst the best of the industry. AEHR outperforms 84.55% of its industry peers.
With a Return On Invested Capital value of 0.04%, AEHR perfoms like the industry average, outperforming 44.55% 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 11.17%.
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 Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 37.17%, AEHR belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
AEHR has a Operating Margin of 0.11%. This is comparable to the rest of the industry: AEHR outperforms 44.55% of its industry peers.
AEHR has a Gross Margin (45.72%) which is in line with its industry peers.
In the last couple of years the Gross Margin of AEHR has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEHR is destroying value.
AEHR has more shares outstanding than it did 1 year ago.
AEHR has more shares outstanding than it did 5 years ago.
AEHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AEHR has an Altman-Z score of 8.22. This indicates that AEHR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.22, AEHR is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
AEHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.22 |
ROIC/WACC0
WACC11.53%
2.3 Liquidity
A Current Ratio of 5.71 indicates that AEHR has no problem at all paying its short term obligations.
AEHR has a Current ratio of 5.71. This is amongst the best in 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 Quick ratio of 3.07. This is in the better half of the industry: AEHR outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.71 | ||
| Quick Ratio | 3.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.93% over the past year.
The Revenue for AEHR has decreased by -14.47% in the past year. This is quite bad
The Revenue has been growing by 25.75% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)63.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%333.33%
Revenue 1Y (TTM)-14.47%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%142.06%
3.2 Future
Based on estimates for the next years, AEHR will show a very negative growth in Earnings Per Share. The EPS will decrease by -27.28% on average per year.
AEHR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.10% yearly.
EPS Next Y-87.46%
EPS Next 2Y-60.14%
EPS Next 3Y-27.28%
EPS Next 5YN/A
Revenue Next Year-8.29%
Revenue Next 2Y6%
Revenue Next 3Y11.1%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.96, the valuation of AEHR can be described as very reasonable.
AEHR's Price/Earnings ratio is rather cheap when compared to the industry. AEHR is cheaper than 97.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, AEHR is valued rather cheaply.
With a Price/Forward Earnings ratio of 46.21, AEHR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as AEHR.
AEHR is valuated expensively when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 46.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEHR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 127.64 |
4.3 Compensation for Growth
AEHR's earnings are expected to decrease with -27.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-60.14%
EPS Next 3Y-27.28%
5. Dividend
5.1 Amount
AEHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AEHR (5/23/2025, 1:44:44 PM)
8.955
+0.13 (+1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners73.04%
Inst Owner Change-11.29%
Ins Owners5.59%
Ins Owner Change-1.12%
Market Cap266.59M
Analysts80
Price Target11.73 (30.99%)
Short Float %25.52%
Short Ratio9.29
Dividend
| Industry Rank | Sector 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)-39.47%
PT rev (3m)-39.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-110.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-46.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-39.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 46.21 | ||
| P/S | 4.34 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.15 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 127.64 |
EPS(TTM)1
EY11.17%
EPS(NY)0.19
Fwd EY2.16%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS2.07
BVpS4.17
TBVpS3.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.22 |
F-Score3
WACC11.53%
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)63.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%333.33%
EPS Next Y-87.46%
EPS Next 2Y-60.14%
EPS Next 3Y-27.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.47%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%142.06%
Revenue Next Year-8.29%
Revenue Next 2Y6%
Revenue Next 3Y11.1%
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