Aehr Test Systems (AEHR) AI Stock Analysis

• Market Cap: $704.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.69
• Revenue Growth: -3.23%
• EPS Growth: -122.16%
• Country: US
• Employees: 115
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 30,006,590
• 10 Day Avg. Volume: 2,610,714
• 30 Day Avg. Volume: 1,853,152
• PEG Ratio: 0.65
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 4.79
• P/FCF Ratio: -22.77
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 17.15
• Enterprise Value/Gross Profit: 44.95
• Enterprise Value/Ebitda: -328.43
• 1Y Price Target: $25.50
• Price Target Upside: 8.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $27.00 ▲(14.94% Upside)

Aehr Test Systems' overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. The technical analysis provides a mixed outlook, while the valuation indicates potential overvaluation. The earnings call offers some optimism with strong sales momentum, but concerns about margins and tariffs remain.

Positive Factors

Market Position

Aehr's leadership in semiconductor testing solutions positions it well to capitalize on industry growth, particularly in automotive and AI sectors.

Product Innovation

Innovative enhancements to the Sonoma system strengthen Aehr's competitive edge, catering to the evolving needs of AI processor testing.

Industry Trends

Macro trends in AI and electrification are boosting semiconductor demand, which benefits Aehr's core testing solutions.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive pressures, impacting long-term growth.

Profitability Issues

Negative profitability margins highlight operational inefficiencies and could strain financial resources if not addressed.

Cash Flow Challenges

Negative cash flows indicate difficulties in generating cash from operations, potentially limiting investment and growth opportunities.

Aehr Test Systems Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Aehr Test Systems generates revenue primarily through the sale of its test and burn-in equipment, which includes both hardware and software components. The company also earns money from ongoing service contracts, maintenance, and support for its installed systems. Key revenue streams include direct sales to semiconductor manufacturers and fabless companies, as well as partnerships with original equipment manufacturers (OEMs) that integrate AEHR's technology into their products. Additionally, AEHR benefits from increasing demand for its solutions due to the growing complexity of semiconductor devices and the need for rigorous testing to ensure reliability, especially in automotive and high-performance computing applications.

Aehr Test Systems Financial Statement Overview

Summary

Aehr Test Systems faces challenges with declining revenue and profitability, as reflected in negative margins and revenue growth. The balance sheet remains strong with low leverage, but recent losses impact return on equity. Cash flow issues are evident, although there is some improvement in free cash flow.

Income Statement

Aehr Test Systems has experienced declining revenue and profitability in the TTM period. The gross profit margin remains stable, but the net profit margin is negative, indicating losses. The EBIT and EBITDA margins have also turned negative, reflecting operational challenges. Revenue growth has been negative, showing a contraction in sales.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative in the TTM period, reflecting recent losses. The equity ratio is strong, suggesting a solid capital structure, but the recent performance raises concerns about profitability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows in the TTM period, although there is a positive free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is positive, suggesting some efficiency in cash management despite losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.73M	58.97M	66.22M	64.96M	50.83M	16.60M
Gross Profit	16.30M	23.93M	32.54M	32.75M	23.66M	6.03M
EBITDA	-2.23M	-903.00K	13.82M	15.07M	9.85M	-1.85M
Net Income	-3.75M	-3.91M	33.16M	14.56M	9.45M	-2.03M
Balance Sheet
Total Assets	144.09M	148.51M	127.91M	98.14M	62.33M	21.66M
Cash, Cash Equivalents and Short-Term Investments	22.71M	25.23M	49.16M	47.91M	31.48M	4.58M
Total Debt	10.62M	10.83M	6.20M	6.30M	1.01M	4.82M
Total Liabilities	21.70M	25.64M	16.32M	22.54M	11.34M	10.22M
Stockholders Equity	122.39M	122.87M	111.59M	75.60M	50.99M	11.45M
Cash Flow
Free Cash Flow	-10.91M	-12.39M	1.01M	8.65M	1.09M	-2.93M
Operating Cash Flow	-7.54M	-7.40M	1.76M	10.01M	1.51M	-2.70M
Investing Cash Flow	-3.83M	-16.07M	17.25M	-18.66M	-416.00K	-227.00K
Financing Cash Flow	322.00K	625.00K	139.00K	7.32M	25.76M	1.96M

Aehr Test Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEHR, the sentiment is Neutral. The current price of 23.49 is below the 20-day moving average (MA) of 29.75, below the 50-day MA of 24.97, and above the 200-day MA of 14.82, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 37.88 is Neutral, neither overbought nor oversold. The STOCH value of 16.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEHR.

Aehr Test Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEHR	57 Neutral	$704.85M	19.55	-5.43%	―	-3.23%	-122.16%
COHU	52 Neutral	$930.83M	―	-10.09%	―	-21.27%	-207.30%
UCTT	50 Neutral	$1.16B	38.78	-19.47%	―	14.28%	-1644.64%
ICHR	50 Neutral	$627.85M	―	-2.98%	―	15.45%	49.82%
INDI	50 Neutral	$897.12M	―	-36.20%	―	-7.49%	-64.33%
AOSL	45 Neutral	$770.15M	―	-11.32%	―	5.92%	-746.07%