Aehr Test Systems (NASDAQ: AEHR)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0001040470
Market Cap 779.03 Mn
P/B 5.96
P/E -87.97
P/S 14.63
ROIC (Qtr) -6.92
Div Yield % 0.00
Rev 1y % (Qtr) -26.53
Total Debt (Qtr) 10.16 Mn
Debt/Equity (Qtr) 0.08

About

Aehr Test Systems, Inc. (AEHR) operates in the semiconductor industry, providing test solutions for the increasing quality, reliability, safety, and security needs of semiconductors. These needs are driven by mission-critical applications such as electric vehicles, electric vehicle charging infrastructure, solar and wind power, computing, data and telecommunications infrastructure, and solid-state memory storage. The company's main business activities involve the design, manufacturing, and marketing of proprietary test and burn-in systems for semiconductor...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 30.84M provide 52.71x coverage of short-term debt 585000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 127.87M provides 12.58x coverage of total debt 10.16M, indicating robust asset backing and low credit risk.
  • Tangible assets of 127.87M provide exceptional 267.51x coverage of deferred revenue 478000, showing strong service capability backing.
  • Operating cash flow of (5.36M) fully covers other non-current liabilities (403000) by 13.30x, showing strong long-term stability.
  • Strong free cash flow of (11.69M) provides 5.17x coverage of acquisition spending (2.26M), indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of (5.36M) barely covers its investment activities of (8.59M), with a coverage ratio of 0.62, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (8.59M) provide weak support for R&D spending of 11.65M, which is -0.74x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 30.84M provide limited coverage of acquisition spending of (2.26M), which is -13.64x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (5.36M) provides insufficient coverage of deferred revenue obligations of 478000, which is -11.21x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (5.36M) shows concerning coverage of stock compensation expenses of 6.73M, with a -0.80 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2025)

Statement Geographical Axis Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 596.49 Bn 243.99 49.68 3.18 Bn
2 AMAT Applied Materials Inc /De 306.44 Bn 110.83 20.97 6.56 Bn
3 LRCX Lam Research Corp 292.93 Bn 47.14 14.25 4.48 Bn
4 KLAC Kla Corp 190.42 Bn 41.78 14.94 5.89 Bn
5 TER Teradyne, Inc 49.92 Bn 61.37 15.61 0.27 Bn
6 ENTG Entegris Inc 16.38 Bn 147.43 21.20 3.91 Bn
7 NVMI Nova Ltd. 13.55 Bn 55.28 15.88 0.88 Bn
8 ONTO Onto Innovation Inc. 10.25 Bn 58.57 10.23 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.16 3.78
EV to Cash from Ops. EV/CFO -143.09 31.10
EV to Debt EV to Debt 75.46 2,381.40
EV to EBIT EV/EBIT -68.85 33.45
EV to EBITDA EV/EBITDA -82.33 21.36
EV to Free Cash Flow [EV/FCF] EV/FCF -65.60 76.88
EV to Market Cap EV to Market Cap 0.98 0.93
EV to Revenue EV/Rev 14.40 57.80
Price to Book Value [P/B] P/B 5.96 9.83
Price to Earnings [P/E] P/E -87.97 39.76
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.91
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.75
Interest Coverage Int. cover (Qtr) 0.00 69.41
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -665.66 -55.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.29 22.64
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.33
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -140.21 -204.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -793.60 -87.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -1,007.17 -107.43
EBT Growth (1y) % EBT 1y % (Qtr) -1,007.17 -121.11
EPS Growth (1y) % EPS 1y % (Qtr) -138.96 -283.91
FCF Growth (1y) % FCF 1y % (Qtr) -97.50 59.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -26.42 43.54
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.36 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 3.71 1.54
Current Ratio Curr Ratio (Qtr) 10.62 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.29
Interest Cover Ratio Int Coverage (Qtr) 0.00 69.41
Times Interest Earned Times Interest Earned (Qtr) 0.00 69.41
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -13.90 -1,802.89
EBIT Margin % EBIT Margin % (Qtr) -20.92 -1,926.71
EBT Margin % EBT Margin % (Qtr) -20.92 -1,933.27
Gross Margin % Gross Margin % (Qtr) 33.30 22.64
Net Profit Margin % Net Margin % (Qtr) -16.60 -2,101.38