NasdaqCM:AEHR

Stock Analysis Report

Executive Summary

Aehr Test Systems primarily designs, engineers, manufactures, and sells test and burn-in equipment for use in the semiconductor industry in the United State, Asia, Europe, and internationally.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Aehr Test Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AEHR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.6%

AEHR

-10.5%

US Semiconductor

-7.6%

US Market


1 Year Return

43.6%

AEHR

26.2%

US Semiconductor

10.2%

US Market

Return vs Industry: AEHR exceeded the US Semiconductor industry which returned 25.8% over the past year.

Return vs Market: AEHR exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

AEHRIndustryMarket
7 Day-12.6%-10.5%-7.6%
30 Day-2.8%-6.7%-4.5%
90 Day10.6%3.0%-0.6%
1 Year43.6%43.6%28.6%26.2%12.5%10.2%
3 Year-56.5%-56.5%75.2%65.8%37.1%28.3%
5 Year-19.3%-19.3%128.0%106.4%60.8%43.2%

Price Volatility Vs. Market

How volatile is Aehr Test Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aehr Test Systems undervalued compared to its fair value and its price relative to the market?

3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AEHR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AEHR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AEHR is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: AEHR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AEHR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AEHR is overvalued based on its PB Ratio (3x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is Aehr Test Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

152.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEHR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AEHR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AEHR's is expected to become profitable in the next 3 years.

Revenue vs Market: AEHR's revenue (29.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AEHR's revenue (29.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AEHR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aehr Test Systems performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEHR is currently unprofitable.

Growing Profit Margin: AEHR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AEHR is unprofitable, but has reduced losses over the past 5 years at a rate of 13% per year.

Accelerating Growth: Unable to compare AEHR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AEHR is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-28.7%).


Return on Equity

High ROE: AEHR has a negative Return on Equity (-20.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aehr Test Systems's financial position?


Financial Position Analysis

Short Term Liabilities: AEHR's short term assets ($20.9M) exceed its short term liabilities ($6.3M).

Long Term Liabilities: AEHR's short term assets ($20.9M) exceed its long term liabilities ($2.0M).


Debt to Equity History and Analysis

Debt Level: AEHR is debt free.

Reducing Debt: AEHR has no debt compared to 5 years ago when its debt to equity ratio was 8.5%.


Balance Sheet

Inventory Level: AEHR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AEHR's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AEHR has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AEHR has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of -12.3% each year.


Next Steps

Dividend

What is Aehr Test Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%4.0%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AEHR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AEHR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AEHR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AEHR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AEHR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Gayn Erickson (55yo)

8.1yrs

Tenure

US$480,929

Compensation

Mr. Gayn Erickson has been the Chief Executive Officer and President of Aehr Test Systems since January 3, 2012. Mr. Erickson a 23-year veteran of the semiconductor test industry. He serves as Senior Vice  ...


CEO Compensation Analysis

Compensation vs Market: Gayn's total compensation ($USD480.93K) is about average for companies of similar size in the US market ($USD524.26K).

Compensation vs Earnings: Gayn's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Rhea Posedel
Founder & Chairman43.1yrsUS$146.12k4.15% $2.0m
Gayn Erickson
President8.1yrsUS$480.93k2.13% $1.0m
Kenneth Spink
VP of Finance & CFO4.4yrsUS$301.24k0.16% $78.1k
Vernon Rogers
Executive Vice President of Sales & Marketing1.3yrsUS$662.27kno data
David S. Fucci
Vice President of Operations5.7yrsUS$230.49k0.0089% $4.3k
David Hendrickson
Chief Technology Officer1.8yrsUS$316.43k0.065% $31.3k
Kunio Sano
President of Aehr Test Systems Japan K.K19.1yrsUS$203.40kno data
Donald Richmond
Vice President of Engineering2.1yrsUS$270.50k0.29% $141.1k

5.0yrs

Average Tenure

62.5yo

Average Age

Experienced Management: AEHR's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rhea Posedel
Founder & Chairman43.1yrsUS$146.12k4.15% $2.0m
Gayn Erickson
President8.1yrsUS$480.93k2.13% $1.0m
Mario Rosati
Independent Director11yrsUS$60.87k0.90% $428.8k
Howard Slayen
Independent Director12.1yrsUS$72.62k0.98% $467.1k
John Schneider
Independent Director5.2yrsUS$65.37k1.46% $699.6k
Laura Oliphant
Independent Director0.6yrsno datano data

9.5yrs

Average Tenure

64yo

Average Age

Experienced Board: AEHR's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AEHR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Aehr Test Systems's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aehr Test Systems
  • Ticker: AEHR
  • Exchange: NasdaqCM
  • Founded: 1977
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$47.894m
  • Shares outstanding: 22.92m
  • Website: https://www.aehr.com

Number of Employees


Location

  • Aehr Test Systems
  • 400 Kato Terrace
  • Fremont
  • California
  • 94539
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEHRNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 1997
AYBDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1997

Biography

Aehr Test Systems primarily designs, engineers, manufactures, and sells test and burn-in equipment for use in the semiconductor industry in the United State, Asia, Europe, and internationally. It provides full wafer contact test systems, test during burn-in systems, test fixtures, and related accessories. The company offers Advanced Burn-in and Test System family of packaged part burn-in and test systems, which perform test during burn-in of complex devices, such as digital signal processors, microprocessors, microcontrollers, and systems-on-a-chip, as well as individual temperature control for high-power advanced logic devices. It also provides FOX systems, which are full wafer contact parallel test and burn-in systems designed to make contact with various pads of a wafer simultaneously; WaferPak contactor that includes a full-wafer probe card for use in testing wafers in FOX systems; DiePak carrier, a reusable and temporary package that enables integrated circuit (IC) manufacturers to perform test and burn-in of singulated bare die or very small multi-IC modules; and test fixtures that hold the devices undergoing test or burn-in and electrically connect the devices under test to the system electronics. In addition, the company offers WaferPak Aligner, which performs automatic alignment of the customer’s wafer to the WaferPak contactor; and DiePak Loader that performs automatic loading of the customer’s modules to the DiePak carrier. Further, Aehr Test Systems provides customer service and support programs, including system installation, system repair, applications engineering support, spare parts inventory, customer training, and documentation services. It markets and sells its products to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers, and burn-in and test service companies through a network of distributors and sales representatives. Aehr Test Systems was founded in 1977 and is headquartered in Fremont, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:42
End of Day Share Price2020/02/26 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.