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Aehr Test Systems (AEHR)
NASDAQ:AEHR
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Aehr Test Systems
(NASDAQ:AEHR)
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Rating:58Neutral
Price Target:
$19.00
▼(-36.90% Downside)
Aehr Test Systems' overall stock score reflects significant financial challenges and valuation concerns, partially offset by technical strength and strategic diversification into AI markets. The company's ability to navigate tariff uncertainties and improve profitability will be crucial for future performance.
Positive Factors
Market Diversification
Diversifying into AI processors and other advanced technologies positions Aehr Test Systems for long-term growth and reduces reliance on traditional markets.
AI Processor Revenue Growth
Significant revenue growth from AI processors indicates successful adaptation to industry trends and potential for sustained future revenue increases.
Successful Acquisition Integration
Efficient integration of acquisitions enhances operational efficiency and cost savings, improving long-term profitability and competitive positioning.
Negative Factors
Revenue Decline
A decline in revenue signals potential challenges in maintaining market share and could impact future growth unless reversed.
Negative Cash Flow
Negative cash flows indicate difficulties in generating cash from operations, which may constrain investment and growth opportunities.
Gross Margin Decrease
A significant drop in gross margin suggests reduced production efficiency and pricing power, potentially impacting long-term profitability.
Aehr Test Systems (AEHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$912.56M
Dividend YieldN/A
Average Volume (3M)1.94M
Price to Earnings (P/E)19.5
Beta (1Y)1.55
Revenue Growth-10.95%
EPS Growth-111.40%
CountryUS
Employees115
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.01
Shares Outstanding29,968,988
10 Day Avg. Volume1,678,980
30 Day Avg. Volume1,936,063
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)2.30
Price to Sales (P/S)4.79
P/FCF Ratio-22.77
Enterprise Value/Market Cap0.30
Enterprise Value/Revenue4.58
Enterprise Value/Gross Profit11.29
Enterprise Value/Ebitda-67.80
Forecast
1Y Price Target
$19.00Price Target Upside-36.90% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Aehr Test Systems Business Overview & Revenue Model
Company DescriptionAehr Test Systems (AEHR) is a leading provider of test and burn-in solutions for the semiconductor industry, specializing in advanced test equipment for silicon wafers and packaged integrated circuits. The company focuses on sectors such as automotive, consumer electronics, and data centers, offering core products that include automated test equipment, burn-in and reliability testing systems, and software solutions that enhance the testing process for semiconductor devices.
How the Company Makes MoneyAehr 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 Key Performance Indicators (KPIs)
Any
Bookings
Reflects the total value of orders received that are yet to be fulfilled, indicating demand for Aehr Test Systems' products and potential future revenue.
Reflects the total value of orders received that are yet to be fulfilled, indicating demand for Aehr Test Systems' products and potential future revenue.
Data provided by:
Main Street Data
Main Street DataAehr Test Systems Earnings Call Summary
Earnings Call Date:Jul 08, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant growth in new markets, particularly in AI processors, and successful integration of a major acquisition, though it also reflects challenges like revenue decline and tariff-related uncertainties impacting shipments and gross margin.Q4-2025 Updates
Positive Updates
AI Processor Revenue Surge
The burn-in of artificial intelligence processors represented 0% of revenue last year but accounted for over 35% of revenue this fiscal year.
Diversification of Market and Revenue
Aehr Test Systems expanded into key markets including AI processors, gallium nitride semiconductors, and silicon photonics, significantly diversifying revenue streams.
Successful Integration of InCal Acquisition
The integration of InCal was completed ahead of schedule, reducing facility costs by over $800,000 annually.
Significant Bookings Increase
Annual bookings in fiscal 2025 were $61.1 million, up over 24% compared to $49 million in the prior fiscal year.
Negative Updates
Revenue Decline
Revenue for fiscal 2025 was $59 million, down 11% year over year.
Gross Margin Decrease
Non-GAAP gross margin for the fourth quarter was 34.7%, compared to 51.5% in the same period last year.
Tariff-Related Uncertainty
Tariff-related uncertainties have caused shipment delays and impacted timing of specific orders, leading to withholding of specific fiscal 2026 guidance.
Company Guidance
During the Aehr Test Systems fiscal 2025 fourth quarter and full year conference call, the company discussed significant shifts in their revenue streams and market expansions. For fiscal 2025, revenue totaled $59 million, a decline of 11% year-over-year, with a non-GAAP gross margin of 44%, down from 49.6% in the prior year. AI processor burn-in solutions, which accounted for 0% of revenue last year, now represent over 35% of revenue, showcasing a major focus shift from silicon carbide devices, which decreased from 90% of revenue in fiscal 2024 to less than 40% this year. The company also reported an increase in annual bookings to $61.1 million, up 24% from the previous year, with a backlog of $15.2 million at year-end. Aehr Test Systems highlighted its strategic diversification into markets such as artificial intelligence processors, gallium nitride semiconductors, and silicon photonics, aiming to drive future growth and profitability. Despite the positive outlook, the company is withholding specific fiscal 2026 guidance due to ongoing tariff-related uncertainties.Aehr Test Systems Financial Statement Overview
Summary
Aehr Test Systems faces financial challenges with declining revenue and profitability, and significant cash flow issues. Despite a strong equity base, operational inefficiencies and negative cash flows are concerning.Income Statement
The company's revenue has shown inconsistent growth with a recent decline in total revenue from $66.2M to $58.97M. The gross profit margin decreased from 49.1% to 40.6%, indicating reduced efficiency in production. The net profit margin turned negative at -6.6%, compared to the previous year's 50%, reflecting significant profitability challenges. The EBIT and EBITDA margins also turned negative, highlighting operational inefficiencies.55
Neutral
Balance Sheet
Aehr Test Systems maintains a solid equity base with an equity ratio of 82.7%. However, the debt-to-equity ratio increased slightly due to rising debt levels, though it remains manageable. The return on equity turned negative, indicating recent profitability issues. The company has a strong cash position, supporting financial stability despite recent losses.65
Positive
Cash Flow
The cash flow situation is concerning, with both operating and free cash flows turning negative. This indicates challenges in generating cash from operations, reflected in a negative free cash flow growth rate of -1,336%. The operating cash flow to net income ratio is negative, further underscoring cash generation issues.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.97M | 58.97M | 66.22M | 64.96M | 50.83M | 16.60M |
| Gross Profit | 23.93M | 23.93M | 32.54M | 32.75M | 23.66M | 6.03M |
| EBITDA | -3.98M | -903.00K | 11.44M | 13.82M | 7.80M | -3.85M |
| Net Income | -3.91M | -3.91M | 33.16M | 14.56M | 9.45M | -2.03M |
Balance Sheet | ||||||
| Total Assets | 148.51M | 148.51M | 127.91M | 98.14M | 62.33M | 21.66M |
| Cash, Cash Equivalents and Short-Term Investments | 24.53M | 24.53M | 49.16M | 47.91M | 31.48M | 4.58M |
| Total Debt | 10.83M | 10.83M | 6.20M | 6.30M | 1.01M | 4.82M |
| Total Liabilities | 25.64M | 25.64M | 16.32M | 22.54M | 11.34M | 10.22M |
| Stockholders Equity | 122.87M | 122.87M | 111.59M | 75.60M | 50.99M | 11.45M |
Cash Flow | ||||||
| Free Cash Flow | -12.39M | -12.39M | 1.01M | 8.65M | 1.09M | -2.93M |
| Operating Cash Flow | -7.40M | -7.40M | 1.76M | 10.01M | 1.51M | -2.70M |
| Investing Cash Flow | -16.07M | -16.07M | 17.25M | -18.66M | -416.00K | -227.00K |
| Financing Cash Flow | 625.00K | 625.00K | 139.00K | 7.32M | 25.76M | 1.96M |
Aehr Test Systems Technical Analysis
Positive
30.11
Price Trends
23.59
Positive
17.64
Positive
14.20
Positive
Market Momentum
2.34
Positive
59.73
Neutral
41.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEHR, the sentiment is Positive. The current price of 30.11 is above the 20-day moving average (MA) of 28.70, above the 50-day MA of 23.59, and above the 200-day MA of 14.20, indicating a bullish trend. The MACD of 2.34 indicates Positive momentum. The RSI at 59.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEHR.
Aehr Test Systems Risk Analysis
Aehr Test Systems disclosed 21 risk factors in its most recent earnings report. Aehr Test Systems reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aehr Test Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $912.56M | 19.55 | -3.34% | ― | -10.95% | -111.40% | |
56 Neutral | $831.68M | -8.59 | -11.79% | ― | 5.92% | -746.07% | |
55 Neutral | $936.90M | -10.90 | -10.49% | ― | -21.27% | -207.30% | |
55 Neutral | $1.22B | -8.05 | -21.27% | ― | 14.28% | -1644.64% | |
50 Neutral | $589.74M | -28.80 | -2.98% | ― | 15.45% | 49.82% | |
50 Neutral | $851.72M | -4.89 | -37.55% | ― | -7.49% | -64.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
AEHR
Aehr Test Systems
30.11
17.81
144.80%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.