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Aehr Test Systems (AEHR)
NASDAQ:AEHR
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Aehr Test Systems
(NASDAQ:AEHR)
70Outperform
Aehr Test Systems (AEHR) vs. S&P 500 (SPY)
Market Cap
$215.71M
Dividend YieldN/A
Average Volume (3M)878.92K
Price to Earnings (P/E)9.7
Beta (1Y)1.28
Revenue Growth-37.77%
EPS Growth3.20%
CountryUS
Employees115
SectorTechnology
Sector Strength40
IndustrySemiconductors
Share Statistics
EPS (TTM)0.75
Shares Outstanding29,711,803
10 Day Avg. Volume777,845
30 Day Avg. Volume878,921
Financial Highlights & Ratios
PEG Ratio3.02
Price to Book (P/B)N/A
Price to Sales (P/S)5.21
Price to Cash Flow (P/CF)-11.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.00Price Target Upside180.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Aehr Test Systems Business Overview & Revenue Model
Company DescriptionAehr Test Systems (AEHR) is a leading provider of semiconductor test and reliability qualification equipment. The company operates within the technology and manufacturing sectors, focusing primarily on the development, production, and sale of systems designed to reduce the cost of testing and burn-in for semiconductor devices. Aehr Test Systems offers a range of products such as wafer-level test and burn-in systems, known for their efficiency and high throughput capabilities, which are essential for ensuring the reliability and performance of semiconductors used in various electronic applications.
How the Company Makes MoneyAehr Test Systems generates revenue through the sale of its semiconductor test and burn-in equipment to a broad range of customers, including semiconductor manufacturers and other electronics companies. The company's key revenue streams include the direct sale of its proprietary test systems, as well as associated accessories and spare parts. Additionally, Aehr Test Systems may earn income from service and maintenance contracts related to its equipment. Significant partnerships with major semiconductor companies and continuous innovation in test technologies also contribute to its earnings by enhancing product offerings and expanding market reach.
Aehr Test Systems Financial Statement Overview
Summary
Aehr Test Systems has demonstrated strong revenue growth and improved profitability over recent years. However, the TTM results indicate potential challenges with a decline in revenue, profitability, and cash flow. The company's low leverage is a positive factor, but maintaining cash flow and reversing recent negative trends will be crucial for sustaining growth.Income Statement
Aehr Test Systems has shown a strong recovery with consistent revenue growth from 2020 to 2024. The company reported a significant improvement in net income, turning negative net income in 2020 into a substantial profit in 2024. However, the TTM data indicates a decline in revenue and a negative EBIT, which could be concerning if the trend continues.82
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position with a growing stockholders' equity from 2020 to 2024. The debt-to-equity ratio is low, indicating low financial leverage. However, the increase in total liabilities and a decline in cash reserves in the TTM period are areas to watch.78
Positive
Cash Flow
Cash flow from operations has fluctuated significantly, with negative cash flow in the TTM period. Free cash flow has been inconsistent, which may affect the company's ability to finance new projects without external funding. The company's ability to convert net income into cash is a concern given the negative operating cash flow in the latest period.70
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 50.73M | 66.22M | 64.96M | 50.83M | 16.60M | 22.29M | Gross Profit |
| 24.08M | 32.54M | 32.75M | 23.66M | 6.03M | 8.37M | EBIT |
| -859.00K | 10.08M | 13.38M | 5.79M | -4.18M | -2.54M | EBITDA |
| 450.00K | 11.44M | 13.82M | 7.80M | -3.85M | -2.16M | Net Income Common Stockholders |
| 22.02M | 33.16M | 14.56M | 9.45M | -2.03M | -2.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.67M | 49.16M | 47.91M | 31.48M | 4.58M | 5.43M | Total Assets |
| 16.97M | 127.91M | 98.14M | 62.33M | 21.66M | 20.57M | Total Debt |
| 302.00K | 6.20M | 6.30M | 1.01M | 4.82M | 3.94M | Net Debt |
| -8.37M | -42.96M | -23.75M | -30.48M | 241.00K | -1.49M | Total Liabilities |
| 5.18M | 16.32M | 22.54M | 11.34M | 10.22M | 6.52M | Stockholders Equity |
| 11.79M | 111.59M | 75.60M | 50.99M | 11.45M | 14.08M |
| Cash Flow | Free Cash Flow | ||||
| -5.92M | 1.01M | 8.65M | 1.09M | -2.93M | -2.19M | Operating Cash Flow |
| -5.09M | 1.76M | 10.01M | 1.51M | -2.70M | -2.02M | Investing Cash Flow |
| -11.44M | 17.25M | -18.66M | -416.00K | -227.00K | -163.00K | Financing Cash Flow |
| 1.07M | 139.00K | 7.32M | 25.76M | 1.96M | 2.17M |
Aehr Test Systems Technical Analysis
Negative
6.78
Price Trends
9.57
Negative
11.44
Negative
12.75
Negative
Market Momentum
-0.62
Positive
36.69
Neutral
15.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEHR, the sentiment is Negative. The current price of 6.78 is below the 20-day moving average (MA) of 8.38, below the 50-day MA of 9.57, and below the 200-day MA of 12.75, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 15.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $11.05B | 20.69 | 20.29% | 0.66% | 5.52% | 16.59% | |
70 Outperform | $215.71M | 9.67 | 20.94% | ― | -37.77% | 3.20% | |
63 Neutral | $1.86B | 27.47 | 7.50% | ― | 15.16% | -15.16% | |
57 Neutral | $18.45B | 9.41 | -13.97% | 2.74% | 5.04% | -23.56% | |
55 Neutral | $825.02M | 35.66 | 2.77% | ― | 20.92% | ― | |
50 Neutral | $1.56B | 246.88 | 0.31% | 2.77% | -4.92% | -85.39% | |
46 Neutral | $647.84M | ― | -7.73% | ― | -36.86% | -351.11% |
* Technology Sector Average
Performance Comparison
AEHR
Aehr Test Systems
6.78
-5.00
-42.44%
COHU
Cohu
13.33
-19.72
-59.67%
FORM
Formfactor
23.18
-24.65
-51.54%
KLIC
Kulicke & Soffa
27.65
-21.07
-43.25%
TER
Teradyne
67.96
-42.79
-38.64%
UCTT
Ultra Clean Holdings
17.84
-29.38
-62.22%
Aehr Test Systems Earnings Call Summary
Earnings Call Date: Apr 8, 2025 | % Change Since: 0.00% | Next Earnings Date: Jul 17, 2025
Earnings Call Sentiment Neutral
The call highlighted significant progress in expanding into new markets such as AI processors and gallium nitride, indicating potential future growth. However, there were notable challenges, including a decline in revenue and gross margin, as well as legal and market risks in China. The strong bookings and backlog provide some optimism, but the overall sentiment is moderated by current market challenges.Highlights
AI Processor Market Entry
Secured first AI processor customer for wafer-level burn-in using the high-power FOX-XP solution, marking a significant technological and commercial breakthrough for Aehr.
Expansion into Gallium Nitride Market
Received initial production purchase order from a leading automotive semiconductor supplier for gallium nitride devices, marking entry into a new high-growth market.
Silicon Photonics Developments
Progress in silicon photonics with a high-power FOX-XP system, enabling testing of over 8,000 devices in parallel, indicating strong market potential for chip-to-chip communication.
Significant Bookings and Backlog
Effective backlog reached $26.6 million, driven by new AI processor customers and additional bookings in the third quarter.
Lowlights
Revenue Decline
Second quarter revenue totaled $13.5 million, a 37% decline compared to $21.4 million in Q2 last year, primarily due to softness in the silicon carbide market.
Legal Challenges and Market Risks in China
Facing intellectual property infringement issues in China and geopolitical risks, impacting potential silicon carbide orders.
Gross Margin Decline
Non-GAAP gross margin decreased to 45.3% from 51.6% last year, attributed to a lower revenue level and product mix changes.
Company Guidance
During the Aehr Test Systems Q2 2025 earnings call, the management provided several key metrics and guidance that highlight the company's progress and future outlook. Aehr reported second-quarter revenue of $13.5 million, a 37% decline from $21.4 million in Q2 last year, largely due to softness in the silicon carbide-powered semiconductor market. However, the company achieved significant milestones, such as securing their first AI processor customer for wafer-level burn-in and receiving initial volume production orders for Sonoma ultra-high-power systems from a large-scale data center hyperscaler. The backlog at the end of the quarter was $12.4 million, with an additional $14.2 million in bookings in the first six weeks of the third quarter, raising the effective backlog to $26.6 million. Despite a decline in gross margins to 45.3% from 51.6% last year due to product mix, Aehr reaffirmed its fiscal 2025 revenue guidance of at least $70 million, with non-GAAP net profit before taxes of no less than 10% of revenue. The company remains optimistic about its growth prospects, driven by market diversification into AI processors, gallium nitride power semiconductors, and other sectors.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.