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

Fundamentals

Adequate balance sheet with limited growth.


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


Market Performance


7 Day Return

6.9%

AEHR

3.8%

US Semiconductor

2.3%

US Market


1 Year Return

-15.5%

AEHR

18.2%

US Semiconductor

5.6%

US Market

Return vs Industry: AEHR underperformed the US Semiconductor industry which returned 18.2% over the past year.

Return vs Market: AEHR underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

AEHRIndustryMarket
7 Day6.9%3.8%2.3%
30 Day29.2%-0.03%-1.0%
90 Day13.4%4.4%-0.7%
1 Year-15.5%-15.5%20.5%18.2%7.9%5.6%
3 Year-36.1%-36.1%82.3%71.6%45.6%36.3%
5 Year-8.8%-8.8%140.3%115.5%65.8%47.6%

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?

2.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Undervalued: 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

Low 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 good value based on its PB Ratio (2.8x) 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?

141.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEHR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AEHR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AEHR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AEHR's revenue (27.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AEHR's revenue (27.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AEHR is unprofitable, but has reduced losses over the past 5 years at a rate of 6.9% 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 (-6.2%).


Return on Equity

High ROE: AEHR has a negative Return on Equity (-27.04%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AEHR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AEHR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Aehr Test Systems's financial position?


Financial Position Analysis

Short Term Liabilities: AEHR's short term assets ($18.3M) exceeds its short term liabilities ($4.5M)

Long Term Liabilities: AEHR's short term assets (18.3M) exceeds its long term liabilities (2.2M)


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 15%.


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AEHR has less than a year of cash runway if free cash flow continues to grow at historical rates of 23.1% 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%3.8%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Aehr Test Systems's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Gayn Erickson (55yo)

7.8yrs

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 ($USD480.93K) is about average for companies of similar size in the US market ($USD493.00K).

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


Management Age and Tenure

4.7yrs

Average Tenure

62.5yo

Average Age

Experienced Management: AEHR's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

64yo

Average Age

Experienced Board: AEHR's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,09909 Nov 18
David S. Fucci
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares547
Max PriceUS$2.01
SellUS$1,09306 Nov 18
David S. Fucci
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares546
Max PriceUS$2.01

Ownership Breakdown


Management Team

  • Rhea Posedel (77yo)

    Founder & Chairman

    • Tenure: 42.8yrs
    • Compensation: US$146.12k
  • David Hendrickson (62yo)

    Chief Technology Officer

    • Tenure: 1.5yrs
    • Compensation: US$316.43k
  • Kunio Sano (63yo)

    President of Aehr Test Systems Japan K.K

    • Tenure: 18.8yrs
    • Compensation: US$203.40k
  • Gayn Erickson (55yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$480.93k
  • Dave Fucci (70yo)

    Vice President of Operations

    • Tenure: 5.3yrs
    • Compensation: US$230.49k
  • Ken Spink (58yo)

    VP of Finance & CFO

    • Tenure: 4.1yrs
    • Compensation: US$301.24k
  • Donald Richmond (63yo)

    Vice President of Engineering

    • Tenure: 1.8yrs
    • Compensation: US$270.50k
  • Vernon Rogers (52yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 1yrs
    • Compensation: US$662.27k

Board Members

  • Rhea Posedel (77yo)

    Founder & Chairman

    • Tenure: 42.8yrs
    • Compensation: US$146.12k
  • Mario Rosati (73yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: US$60.87k
  • Howard Slayen (72yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$72.62k
  • John Schneider (52yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$65.37k
  • Gayn Erickson (55yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$480.93k
  • Laura Oliphant (56yo)

    Director

    • Tenure: 0.3yrs

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$42.298m
  • Shares outstanding: 22.74m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:30
End of Day Share Price2019/10/16 00:00
Earnings2019/08/31
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.