AEM Holdings Ltd. (AWX) AI Stock Analysis

• Market Cap: S$606.48M
• Dividend Yield: N/A
• Average Volume (3M): 6.32M
• Price to Earnings (P/E): 43.7
• Beta (1Y): 1.70
• Revenue Growth: 4.60%
• EPS Growth: N/A
• Country: SG
• Employees: 2,372
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 317,224,670
• 10 Day Avg. Volume: 7,001,170
• 30 Day Avg. Volume: 6,323,733
• PEG Ratio: -0.04
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -10.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.85
• Price Target Upside: -2.63% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: S$2.00 ▲(5.26% Upside)

AEM Holdings Ltd. receives an overall score of 52, primarily influenced by its mixed financial performance and bearish technical indicators. The strong balance sheet provides some stability, but liquidity challenges and weak market momentum are significant concerns. The high P/E ratio suggests overvaluation, further impacting the stock's attractiveness.

Positive Factors

Low Leverage / Strong Capital Structure

A debt-to-equity of 0.19 and a healthy equity ratio indicate low leverage and a solid capital structure. This durable financial strength supports investment in R&D, absorbs cyclical downturns, and preserves flexibility to fund capex or service the installed base without heavy refinancing risk.

Revenue Recovery

An 11.19% revenue increase signals a recovery in demand for AEM's test equipment and services. Sustained top-line growth over several quarters suggests improving order intake and market acceptance, providing a foundation for profitable scale-up and longer-term operational leverage if maintained.

Recurring Aftermarket & Service Revenue

AEM’s business model includes recurring aftermarket sales and services tied to its installed base. These durable revenue streams tend to be higher margin and less cyclical than capital equipment sales, improving lifetime customer value and providing steady cash flow when capital spending softens.

Negative Factors

Weak Cash Generation

Negative operating and free cash flow indicate persistent cash-generation weakness and poor conversion of earnings into cash. Over the medium term this can constrain working capital, hamper reinvestment or service expansion, and increase reliance on external funding during downturns.

Margin Pressure

Declining gross margins and a modest net profit margin (3.01%) point to cost pressures and limited pricing power. Sustained margin compression reduces retained earnings available for reinvestment, weakens resilience to demand shocks, and limits the company's ability to fund long-term competitiveness.

Cyclical End-Market Exposure

AEM’s revenue is closely tied to semiconductor production and test-capacity investment cycles, creating structural revenue volatility. This cyclical dependence makes long-term planning and consistent cash flow generation harder, increasing the need for conservative capital management and diversification.

AEM Holdings Ltd. Business Overview & Revenue Model

Company Description

AEM Holdings Ltd provides intelligent system testing and handling solutions for semiconductor and electronics companies in Asia, Europe, and North and Central America. It operates through Test Cell Solutions, Instrumentation, Contract Manufacturing, and Other segments. The company offers handling solutions comprising of system level, wafer level, and packaged level tests. It also provides test manipulators, test instruments, software, and other services, as well as TestPro multifunction cable tester, network service assistant, mixed mode multi-port vector network analyzer, and WideOptix-SR4 measurement system solutions. The company serves contract manufacturing, original equipment manufacturers, and outsourced semiconductor assembly sectors. AEM Holdings Ltd was incorporated in 2000 and is headquartered in Singapore.

How the Company Makes Money

AEM Holdings Ltd. generates revenue through multiple streams, including the sale of precision engineering services and solutions, which cater to the semiconductor and electronics industries. The company derives significant income from manufacturing semiconductor test equipment, which is vital for ensuring the reliability and performance of semiconductor devices. Additionally, AEM has established partnerships with leading technology firms, which not only enhance its market presence but also contribute to joint development projects that can lead to shared revenues. The company's focus on environmental solutions also provides an additional revenue stream through contracts related to waste management and renewable energy initiatives. Overall, AEM's diversified portfolio and strategic partnerships play a crucial role in its financial performance.

AEM Holdings Ltd. Financial Statement Overview

Summary

AEM Holdings Ltd. shows a mixed financial performance. The income statement indicates recovery with improved revenue growth and profitability margins, though they remain below historical levels. The balance sheet is strong with low leverage, providing financial stability. However, the cash flow statement reveals liquidity challenges, with negative cash flows indicating potential operational inefficiencies.

Income Statement

AEM Holdings Ltd. shows a mixed performance in its income statement. The company has experienced a positive revenue growth rate of 11.19% in the most recent year, recovering from a decline in the previous year. However, the gross profit margin has decreased over the years, indicating potential cost pressures. The net profit margin has improved from a negative position in the previous year to a positive 3.01%, but it remains relatively low compared to historical performance. EBIT and EBITDA margins have shown slight improvements, suggesting better operational efficiency.

Balance Sheet

The balance sheet of AEM Holdings Ltd. reflects a stable financial position with a manageable debt-to-equity ratio of 0.19, which has improved from previous years. The return on equity has turned positive at 2.35%, indicating a recovery in profitability, though it remains lower than historical highs. The equity ratio stands at a healthy level, suggesting a strong capital structure. Overall, the company maintains a solid balance sheet with low leverage.

Cash Flow

The cash flow statement presents challenges, with negative operating cash flow and free cash flow in the latest year, indicating liquidity issues. The free cash flow growth rate is significantly negative, reflecting a substantial decline in cash generation. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash. Despite these issues, the free cash flow to net income ratio is high, suggesting that when cash is generated, it is substantial relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	420.15M	380.41M	481.28M	870.49M	565.46M	518.96M
Gross Profit	102.92M	97.61M	129.30M	273.66M	186.65M	203.47M
EBITDA	27.99M	43.12M	40.95M	185.23M	126.71M	122.25M
Net Income	15.56M	11.44M	-1.24M	126.81M	91.95M	97.59M
Balance Sheet
Total Assets	643.01M	673.17M	707.53M	805.60M	710.50M	335.52M
Cash, Cash Equivalents and Short-Term Investments	59.27M	43.77M	101.85M	127.78M	216.18M	134.78M
Total Debt	74.64M	94.38M	126.36M	143.31M	81.27M	11.29M
Total Liabilities	157.39M	180.86M	233.14M	312.15M	307.98M	124.09M
Stockholders Equity	485.62M	485.70M	467.46M	485.05M	402.51M	211.43M
Cash Flow
Free Cash Flow	0.00	-41.70M	14.39M	-58.91M	35.23M	81.05M
Operating Cash Flow	0.00	-17.52M	40.17M	-31.43M	52.00M	86.29M
Investing Cash Flow	0.00	-8.79M	-20.09M	-38.44M	-85.22M	-29.77M
Financing Cash Flow	0.00	-31.78M	-46.91M	-19.28M	113.51M	-25.91M

AEM Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AWX, the sentiment is Positive. The current price of 1.9 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.74, and above the 200-day MA of 1.58, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AWX.

AEM Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5DD	75 Outperform	S$233.57M	17.67	24.01%	3.73%	12.70%	48.43%
558	69 Neutral	S$1.19B	28.57	9.60%	3.88%	1.24%	-10.12%
E28	65 Neutral	S$714.37M	18.33	9.11%	1.88%	11.57%	0.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MZH	56 Neutral	S$371.49M	28.50	3.50%	1.12%	22.66%	83.49%
AWX	52 Neutral	S$606.48M	43.68	2.87%	―	4.60%	―

AEM Holdings Ltd. Corporate Events

AEM Issues 824,000 New Shares Following Employee Option Exercise

AEM Holdings Ltd has issued and allotted 824,000 new ordinary shares at an exercise price of S$1.142 each following the exercise of options under its 2014 Employee Share Option Scheme. The new shares, which rank pari passu with existing ordinary shares, are expected to begin trading on the Singapore Exchange on or about 21 January 2026, bringing the company’s total issued and paid-up share capital (excluding treasury shares) to 314,607,302 shares and marginally diluting existing shareholders while signalling ongoing use of stock options as part of its capital and compensation structure.

The most recent analyst rating on (SG:AWX) stock is a Hold with a S$2.00 price target. To see the full list of analyst forecasts on AEM Holdings Ltd. stock, see the SG:AWX Stock Forecast page.

AEM Holdings Ltd. Reports Strong 9M2025 Results and Positive Outlook

AEM Holdings Ltd. reported a revenue of S$287.5 million for the first nine months of 2025, marking a 16% increase year-on-year, driven by strong performance in the AI/HPC segment. The company also saw a significant rise in profit before tax and operational cash flow, indicating improved product mix and operational leverage. AEM is poised for further growth with a new customer ramp and equipment evaluations with a leading memory customer, suggesting a positive outlook for FY2026 and beyond.

The most recent analyst rating on (SG:AWX) stock is a Hold with a S$2.00 price target. To see the full list of analyst forecasts on AEM Holdings Ltd. stock, see the SG:AWX Stock Forecast page.