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Aehr Test Systems (AEHR)
NASDAQ:AEHR
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Aehr Test Systems
(NASDAQ:AEHR)
Rating:79Outperform
Price Target:
$17.50
▲(12.18%Upside)
Positive Factors
Acquisition Impact
The acquisition of Incal Technology will expand Aehr’s product portfolio, representing a growth opportunity in AI accelerators, GPUs, and high-performance computing processors.
R&D Investments
Aehr is experiencing demand from various AI companies for wafer level and packaged part burn-in, and it expects to prioritize R&D investments to meet the constantly evolving needs of its customers, which will spur growth in all segments.
Negative Factors
Guidance Halt
Due to the lumpiness and uncertainty from geopolitical tariff changes, Aehr is choosing to halt guidance until the markets stabilize and supply chains normalize.
Tariff Uncertainty
There is uncertainty related to the U.S. tariff policy, which could have near-term effects on customer orders and supply chain deliveries.
Aehr Test Systems (AEHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$464.43M
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)20.1
Beta (1Y)1.60
Revenue Growth-14.48%
EPS Growth46.79%
CountryUS
Employees115
SectorTechnology
Sector Strength87
IndustrySemiconductors
Share Statistics
EPS (TTM)N/A
Shares Outstanding29,771,410
10 Day Avg. Volume1,511,205
30 Day Avg. Volume1,062,957
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)12.14
Price to Sales (P/S)0.00
P/FCF Ratio106.08
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue3.77
Enterprise Value/Gross Profit31.79
Enterprise Value/Ebitda40.03
Forecast
1Y Price Target
$11.50Price Target Upside-26.28% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Aehr Test Systems Business Overview & Revenue Model
Company DescriptionAehr Test Systems (AEHR) is a technology company that specializes in the design, manufacture, and sale of test and burn-in equipment used in the semiconductor industry. The company's products are used to ensure the reliability and quality of semiconductors, which are critical components in a wide range of electronic devices. Aehr Test Systems serves industries such as automotive, mobile communications, computers, and industrial applications, providing solutions that help their customers meet the demanding requirements of modern electronics.
How the Company Makes MoneyAehr Test Systems generates revenue primarily through the sale of its test and burn-in equipment to semiconductor manufacturers and other companies involved in the electronics supply chain. The company's key revenue streams include the sale of its proprietary testing systems, such as the FOX-XP and FOX-NP platforms, which are designed for high-volume production and reliability testing. Additionally, Aehr Test Systems offers service and support contracts, as well as consumables and upgrade kits for its equipment, contributing to recurring revenue. Significant partnerships with leading semiconductor companies enhance its market presence and contribute to its earnings, while ongoing product innovation helps maintain its competitive edge.
Aehr Test Systems Key Performance Indicators (KPIs)
Any
Backlog
Represents the value of pending orders, offering a glimpse into future revenue streams and the strength of product demand.
Represents the value of pending orders, offering a glimpse into future revenue streams and the strength of product demand.
Data provided by:
Main Street Data
Main Street DataAehr Test Systems Earnings Call Summary
Earnings Call Date:Jul 08, 2025
(Q3-2025)
| % Change Since: 130.09%|
Next Earnings Date:Oct 02, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and successful market diversification into AI and other segments, but was overshadowed by uncertainty from recent tariff announcements and challenges in maintaining margins. Despite these challenges, the company remains optimistic about long-term growth opportunities.Q3-2025 Updates
Positive Updates
Record Revenue Growth
Third quarter revenue reached $18.3 million, a 142% increase compared to $7.6 million in Q3 last year, driven by high-power FOX-XP system shipments for AI processors.
Diversification Success
AI processors now represent over 35% of Aehr's business this year, a significant diversification from the previous reliance on silicon carbide.
Strategic Market Expansions
Aehr entered several new markets including GaN power semiconductors, AI processors, silicon photonics, and hard disk drives.
Successful Product Integration
The integration of InCal Technology's products boosted Aehr's manufacturing capabilities and expanded offerings in AI markets.
Negative Updates
Tariff-Related Uncertainty
The recent U.S. tariff announcements have created uncertainty regarding potential delays or pauses in customer orders and deliveries.
Temporary Guidance Withdrawal
Due to tariff impacts and potential customer order delays, Aehr has temporarily withdrawn its fiscal 2025 guidance.
Gross Margin Challenges
Non-GAAP gross margin for Q3 was flat at 42.7% due to one-time charges and high manufacturing overhead.
Increased Operating Expenses
Non-GAAP operating expenses rose by 34% year-over-year, driven by InCal integration costs and increased legal fees.
Company Guidance
During the Aehr Test Systems Fiscal 2025 Third Quarter Financial Results Call, the company reported a third-quarter revenue of $18.3 million, marking a significant 142% increase compared to the same period last year. This growth was primarily driven by shipments of the new high-power FOX-XP solution for AI processors. The company also noted a backlog of $22 million and highlighted its strategic expansion into AI processors, gallium nitride, and flash memory markets. Despite withdrawing guidance for fiscal 2025 due to uncertainties related to recent tariff announcements, Aehr Test Systems emphasized its robust supply chain and diversified market opportunities, projecting a total addressable market of $1 billion by 2027, with wafer and package part burn-in systems accounting for $500 million each.Aehr Test Systems Financial Statement Overview
Summary
Aehr Test Systems demonstrates robust revenue growth and a solid balance sheet, with high equity and low debt. However, recent challenges in cash flow due to increased capital expenditures and declining profit margins indicate potential risks.Income Statement
Aehr Test Systems has shown strong revenue growth over the past few years, rising significantly from $16.6 million in 2021 to $66.2 million in 2024. The TTM figures show a slight decline to $61.5 million, indicating some recent pressure. Gross profit margin has remained healthy, indicating efficient production and pricing strategies. However, the net profit margin has reduced in the latest period due to higher costs, reflected in the lower EBIT and EBITDA margins.78
Positive
Balance Sheet
The company's balance sheet is robust, with a high equity ratio and a low debt-to-equity ratio, reflecting strong financial stability and low leverage. Stockholders' equity has consistently increased, showing strong shareholder value growth. The company’s asset base has expanded significantly, supporting its growth trajectory.85
Very Positive
Cash Flow
Aehr Test Systems has faced variability in cash flow, with a current negative free cash flow due to increased capital expenditures and lower operating cash flows. The operating cash flow to net income ratio has turned negative, indicating challenges in cash generation from operations. However, previous periods showed positive free cash flow, suggesting potential for improvement.65
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.48M | 66.22M | 64.96M | 50.83M | 16.60M | 22.29M |
| Gross Profit | 28.11M | 32.54M | 32.75M | 23.66M | 6.03M | 8.37M |
| EBITDA | 1.92M | 11.44M | 13.82M | 7.80M | -3.85M | -2.16M |
| Net Income | 22.85M | 33.16M | 14.56M | 9.45M | -2.03M | -2.80M |
Balance Sheet | ||||||
| Total Assets | 145.61M | 127.91M | 98.14M | 62.33M | 21.66M | 20.57M |
| Cash, Cash Equivalents and Short-Term Investments | 29.41M | 49.16M | 47.91M | 31.48M | 4.58M | 5.43M |
| Total Debt | 6.44M | 6.20M | 6.30M | 1.01M | 4.82M | 3.94M |
| Total Liabilities | 21.40M | 16.32M | 22.54M | 11.34M | 10.22M | 6.52M |
| Stockholders Equity | 124.21M | 111.59M | 75.60M | 50.99M | 11.45M | 14.08M |
Cash Flow | ||||||
| Free Cash Flow | -6.09M | 1.01M | 8.65M | 1.09M | -2.93M | -2.19M |
| Operating Cash Flow | -3.87M | 1.76M | 10.01M | 1.51M | -2.70M | -2.02M |
| Investing Cash Flow | -13.29M | 17.25M | -18.66M | -416.00K | -227.00K | -163.00K |
| Financing Cash Flow | 795.00K | 139.00K | 7.32M | 25.76M | 1.96M | 2.17M |
Aehr Test Systems Technical Analysis
Positive
15.60
Price Trends
10.33
Positive
9.70
Positive
11.45
Positive
Market Momentum
1.16
Negative
77.46
Negative
95.88
Negative
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 15.6 is above the 20-day moving average (MA) of 12.25, above the 50-day MA of 10.33, and above the 200-day MA of 11.45, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 77.46 is Negative, neither overbought nor oversold. The STOCH value of 95.88 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $464.43M | 20.10 | 21.69% | ― | -14.48% | 46.79% | |
74 Outperform | $370.04M | 24.57 | 23.57% | 5.23% | -13.18% | -12.06% | |
64 Neutral | €2.89B | 14.23 | 3.54% | 2.80% | 6.71% | -64.23% | |
64 Neutral | $371.89M | ― | -4.71% | ― | -4.77% | 84.82% | |
55 Neutral | $283.33M | ― | -24.31% | ― | -12.13% | -39.21% | |
55 Neutral | $283.33M | ― | -24.31% | ― | -12.13% | -39.21% | |
52 Neutral | $387.45M | ― | -1369.57% | ― | 14.68% | 20.20% | |
52 Neutral | $387.45M | ― | -1369.57% | ― | 14.68% | 20.20% | |
51 Neutral | $1.24B | ― | -26.43% | ― | -16.95% | -2.47% | |
51 Neutral | $1.24B | ― | -26.43% | ― | -16.95% | -2.47% |
* Technology Sector Average
Performance Comparison
AEHR
Aehr Test Systems
15.60
2.80
21.87%
NVEC
NVE
76.50
7.77
11.31%
VLN
Valens
2.68
-0.17
-5.96%
VLN
Valens
2.68
-0.17
-5.96%
NVTS
Navitas Semiconductor
6.44
2.05
46.70%
NVTS
Navitas Semiconductor
6.44
2.05
46.70%
AIP
Arteris
9.23
1.61
21.13%
AIP
Arteris
9.23
1.61
21.13%
XPER
Xperi Inc
8.14
0.21
2.65%
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.