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AEHR TEST SYSTEMS (AEHR) Stock Fundamental Analysis

NASDAQ:AEHR - Nasdaq - US00760J1088 - Common Stock

13.22  +0.76 (+6.1%)

After market: 13.45 +0.23 (+1.74%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AEHR. AEHR was compared to 109 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year AEHR was profitable.
AEHR had a negative operating cash flow in the past year.
In multiple years AEHR reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: AEHR reported negative operating cash flow in multiple 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

Looking at the Return On Assets, with a value of 15.48%, AEHR belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
AEHR has a Return On Equity of 17.88%. This is amongst the best in the industry. AEHR outperforms 80.56% of its industry peers.
Industry RankSector Rank
ROA 15.48%
ROE 17.88%
ROIC N/A
ROA(3y)18.64%
ROA(5y)6.59%
ROE(3y)22.5%
ROE(5y)5.98%
ROIC(3y)N/A
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 43.41%. This is amongst the best in the industry. AEHR outperforms 97.22% of its industry peers.
AEHR's Gross Margin of 47.47% is in line compared to the rest of the industry. AEHR outperforms 57.41% of its industry peers.
In the last couple of years the Gross Margin of AEHR has grown nicely.
Industry RankSector Rank
OM N/A
PM (TTM) 43.41%
GM 47.47%
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

AEHR does not have a ROIC to compare to the WACC, probably because it is not profitable.
AEHR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AEHR has been increased compared to 5 years ago.
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.
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

An Altman-Z score of 13.10 indicates that AEHR is not in any danger for bankruptcy at the moment.
AEHR's Altman-Z score of 13.10 is amongst the best of the industry. AEHR outperforms 81.48% of its industry peers.
AEHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 13.1
ROIC/WACCN/A
WACC14.74%
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 7.55. This indicates that AEHR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AEHR (7.55) is better than 90.74% of its industry peers.
AEHR has a Quick Ratio of 3.82. This indicates that AEHR is financially healthy and has no problem in meeting its short term obligations.
AEHR's Quick ratio of 3.82 is fine compared to the rest of the industry. AEHR outperforms 70.37% of its industry peers.
Industry RankSector Rank
Current Ratio 7.55
Quick Ratio 3.82
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 has grown by an nice 12.50% over the past year.
The Revenue for AEHR has decreased by -37.77% 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)12.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-91.3%
Revenue 1Y (TTM)-37.77%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%-37.24%

3.2 Future

AEHR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.47% yearly.
The Revenue is expected to grow by 15.91% on average over the next years. This is quite good.
EPS Next Y-74.92%
EPS Next 2Y-37.31%
EPS Next 3Y-11.47%
EPS Next 5YN/A
Revenue Next Year5.53%
Revenue Next 2Y14.1%
Revenue Next 3Y15.91%
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.
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 100M
AEHR Yearly EPS VS EstimatesAEHR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.69, which indicates a correct valuation of AEHR.
Compared to the rest of the industry, the Price/Earnings ratio of AEHR indicates a rather cheap valuation: AEHR is cheaper than 90.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, AEHR is valued a bit cheaper.
AEHR is valuated quite expensively with a Price/Forward Earnings ratio of 27.58.
AEHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AEHR is cheaper than 64.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, AEHR is valued at the same level.
Industry RankSector Rank
PE 14.69
Fwd PE 27.58
AEHR Price Earnings VS Forward Price EarningsAEHR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 RankSector Rank
P/FCF N/A
EV/EBITDA 768.14
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 cheap valuation may be justified as AEHR's earnings are expected to decrease with -11.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.31%
EPS Next 3Y-11.47%

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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 (1/21/2025, 8:00:00 PM)

After market: 13.45 +0.23 (+1.74%)

13.22

+0.76 (+6.1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-13 2025-01-13/amc
Earnings (Next)N/A N/A
Inst Owners66.94%
Inst Owner Change0.58%
Ins Owners5.49%
Ins Owner Change0.5%
Market Cap391.71M
Analysts80
Price Target25.5 (92.89%)
Short Float %23.45%
Short Ratio5.22
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)104.25%
Min EPS beat(2)-34.64%
Max EPS beat(2)243.14%
EPS beat(4)3
Avg EPS beat(4)227.19%
Min EPS beat(4)-34.64%
Max EPS beat(4)684.31%
EPS beat(8)7
Avg EPS beat(8)119.33%
EPS beat(12)9
Avg EPS beat(12)118.79%
EPS beat(16)12
Avg EPS beat(16)86.3%
Revenue beat(2)1
Avg Revenue beat(2)-3.31%
Min Revenue beat(2)-12.33%
Max Revenue beat(2)5.7%
Revenue beat(4)2
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-12.33%
Max Revenue beat(4)5.7%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)7
Avg Revenue beat(12)3.43%
Revenue beat(16)10
Avg Revenue beat(16)2.43%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
Industry RankSector Rank
PE 14.69
Fwd PE 27.58
P/S 7.72
P/FCF N/A
P/OCF N/A
P/B 3.18
P/tB 3.88
EV/EBITDA 768.14
EPS(TTM)0.9
EY6.81%
EPS(NY)0.48
Fwd EY3.63%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)-0.17
OCFYN/A
SpS1.71
BVpS4.16
TBVpS3.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 15.48%
ROE 17.88%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 43.41%
GM 47.47%
FCFM N/A
ROA(3y)18.64%
ROA(5y)6.59%
ROE(3y)22.5%
ROE(5y)5.98%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
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-Score2
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 62.32%
Cap/Sales 1.63%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 7.55
Quick Ratio 3.82
Altman-Z 13.1
F-Score2
WACC14.74%
ROIC/WACCN/A
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)12.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-91.3%
EPS Next Y-74.92%
EPS Next 2Y-37.31%
EPS Next 3Y-11.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-37.77%
Revenue growth 3Y58.59%
Revenue growth 5Y25.75%
Sales Q2Q%-37.24%
Revenue Next Year5.53%
Revenue Next 2Y14.1%
Revenue Next 3Y15.91%
Revenue Next 5YN/A
EBIT growth 1Y-104.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year336.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-601.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-424.39%
OCF growth 3YN/A
OCF growth 5YN/A