Aehr Test Systems
$114.59
-0.49%Aehr Test Systems provides test systems for burning-in and testing logic, optical, and memory integrated circuits worldwide. It offers products, such as the ABTS and FOX-P families of test and burn-in systems and FOX WaferPak Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier, and FOX DiePak Loader. The ABTS system is used in production and qualification testing of packaged parts for lower power and higher power logic devices, as well as various common types of memory devices. The FOX-XP and FOX-NP systems are wafer contact and singulated die/module test and burn-in systems used for burn-in and functional test of complex devices, such as memories, digital signal processors, microprocessors, microcontrollers, systems-on-a-chip, and integrated optical devices. The FOX-CP system is a single-wafer compact test and reliability verification solution for logic, memory, and photonic devices. The WaferPak Contactor contains a unique full wafer probe card capable of testing wafers up to 300mm that enables IC manufacturers to perform test and burn-in of full wafers on Aehr Test FOX systems. The DiePak Carrier is a reusable, temporary package that enables IC manufacturers to perform final test and burn-in of bare die and modules. Aehr Test Systems was incorporated in 1977 and is headquartered in Fremont, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -881.5).
Valuation inputs: P/E -881.5, earnings yield N/A, momentum -0.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -3.2%, ROIC -2.9%).
Profitability stack: net margin -6.6%, ROE -3.2%, ROIC -2.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +17.3%, momentum -0.5%, net margin -6.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Aehr Test Systems Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Declining earnings warrant investigation into business challenges and competitive position.
Price-EPS Relationship
Price is rising despite declining earnings—caution advised as valuation may be stretched.
Stock Price Change
Over the 1Y period, stock price has increased by 880.2%.
P/E Ratio (TTM)
Relatively low P/E may indicate undervaluation or lower growth expectations.
Key Insight
Despite declining earnings (-31.9%), the stock price has risen (+880.2%). This disconnect suggests investors may be optimistic about future turnaround, but earnings recovery is critical to sustain the valuation.
Aehr Test Systems Fair Value Envelope
Aehr Test Systems Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Aehr Test Systems Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Aehr Test Systems Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Aehr Test Systems Street Expectations Map
Wall Street analysts project that AEHR stock may decline over the coming 12 months. The consensus 1-year price target stands at 62.00, with estimates ranging from a low of 56.00 to a high of 68.00.
The consensus 1-year price target stands at 62.00, with estimates ranging from a low of 56.00 to a high of 68.00.
Analyst Consensus Analysis
Upside Potential
Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.
Aehr Test Systems Insider Positioning
During the last 12 months, insiders have purchased $375 and sold $19.86M worth of AEHR shares, resulting in $19.86M of net selling activity.
3 Months
0
0.00
249.7K
19.07M
-19.1M
-$19.07M
3-6 Months
0
0.00
19.8K
591.87K
-592K
-$592K
6-9 Months
185
375.00
7.6K
194.62K
-194K
-$194K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Rogers Vernon
Officer: Exec Vp Of Sales & Mktg.
$375
Top Sellers
Erickson Gayn
Director, Officer: President And Ceo
$6.80M
Slayen Howard T
Director
$2.99M
Posedel Rhea J
Director: Director
$2.96M
Scott Geoffrey Gates
Director: Director
$2.61M
Rogers Vernon
Officer: Exec Vp Of Sales & Mktg.
$1.42M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $19.86M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
AEHR has not reported any dividend yield values in the available annual periods.
aehr Dividend History
Learning Layer
Related Guides
Build conviction on AEHR by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.