Aehr Test Systems Common Stock (AEHR)

FairStock Score: 16/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Sound investing starts with business quality and price. Aehr is a niche supplier of wafer-level test and burn-in systems for power semiconductors like silicon carbide and gallium nitride. That may offer a technical edge, but the filed numbers show a cyclical equipment maker under pressure. In FY2024, it earned $33.2M on $66.2M of revenue, or $1.12 per diluted share. By FY2025, revenue was $59.0M and net income was a loss of $3.9M. In FY2026, revenue fell again to $50.0M and the net loss widened to $7.1M, or $0.23 per diluted share. The FY2026 quarters were weak: fiscal Q1 2026, ended 2025-08-29, had $11.0M revenue and a $2.1M net loss; fiscal Q2 2026, ended 2025-11-28, had $9.9M revenue and a $3.2M net loss; fiscal Q3 2026, ended 2026-02-27, had $10.3M revenue and a $3.2M net loss. Financial health is not the problem. Debt-to-equity is 0.05, and FairStock's Altman Z-Score is 56.51. But trailing free cash flow is -$5.4M, with a -0.2% FCF yield, and FairStock calculations show ROE of -4.16% and ROCE of -4.47%. At the 2026-10-13 close of $77.51, market cap is $2.5B, P/B is 11.47, and P/E is negative at -337. FairStock's score is 16/100, and its Lynch category is turnaround, loss in the latest year after earlier profits. Paying more than 11 times book for a loss-making, shrinking revenue base requires a strong recovery. I would need evidence of durable orders, positive cash flow, and renewed profits before this looks like a value investment.

In plain English: Aehr Test Systems makes testing and burn-in equipment for semiconductor chips, especially power chips. In its latest reported fiscal year, sales fell and the loss grew, so the business looks weak right now. At the recent share price, the stock looks expensive compared with the company's sales, profits, and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-02-27) · fiscal Q2 2026 10-Q (period ended 2025-11-28) · fiscal Q1 2026 10-Q (period ended 2025-08-29) · fiscal Q3 2025 10-Q (period ended 2025-02-28) · FY2026 10-K (period ended 2026-05-29) · FY2025 10-K (period ended 2025-05-30) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer