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AEHR TEST SYSTEMS (AEHR)

Instruments For Meas & Testing of Electricity & Elec Signals · Instruments For Meas & Testing of Electricity & Elec Signals · NASDAQ

$76.45

-0.18%

Investru Score

31.6 / 100

Weak

Why is AEHR moving?

AEHR is little changed today (-0.18%).

Business overview

  • The company operates in the sector of Instruments For Meas & Testing of Electricity & Elec Signals.

  • The company's asset type is equity.

These characteristics place the company within specialized testing equipment markets.

Bull case

If the company can leverage its exceptionally high current ratio of 10.33 to fund a turnaround, re-accelerate revenue above the current -15.2% decline, and reverse its negative operating margins, the stock could reprice higher from current oversold technical levels.

Bear case

Persistent top-line contraction combined with deep operating and net losses could exhaust the company's financial reserves, while a high forward P/E multiple of 109.82 collapses due to sustained negative earnings growth.

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Score breakdown

Financial Quality
26
Growth
28
Profitability
19
Balance Sheet
60
Valuation
29
Momentum
33

Financial quality

  • ROE is -3.2%.

  • Free cash flow margin is -10.8%.

  • Earnings quality is 0.46.

  • ROIC data is unavailable.

Together, these figures indicate weak returns on equity, negative cash generation relative to sales, and low conversion of earnings into high-quality cash flows.

ROIC
Data unavailable
ROE
-3.2%
FCF Margin
-10.8%
Free Cash Flow (TTM)
$-0.0B
Earnings Quality (OCF ÷ Net Income)
0.5x

Valuation

  • P/E ratio is unavailable.

  • Forward P/E is 109.82.

  • Trailing PEG ratio is unavailable.

  • Forward PEG ratio is unavailable.

  • Median PEG ratio is unavailable.

  • EV to EBITDA is unavailable.

  • Price-to-sales ratio is 50.19.

  • Free cash flow yield is -0.2%.

Together, these valuation metrics show an extremely rich forward earnings multiple and a high price-to-sales ratio despite ongoing unprofitability and negative cash flows.

P/E (TTM)
Data unavailable
Forward P/E
109.8x
PEG (P/E ÷ EPS Growth)
Data unavailable
Company Median PEG
Data unavailable
Price / Sales
50.2x
EV / EBITDA
Data unavailable
FCF Yield
-0.2%

Key risks

  • Ongoing revenue contraction of 15.2% year-over-year could persist and further damage the business model.(Probability: High · Impact: High)
  • Operating losses with a margin of -28.3% may continue to deplete corporate capital.(Probability: High · Impact: High)
  • An elevated forward P/E ratio of 109.82 leaves the stock vulnerable to severe multiple compression if growth does not materialize.(Probability: Medium · Impact: High)

Latest earnings

Q3 FY26 EPS
$-0.10
Estimate
Data unavailable
Surprise
Data unavailable

  • EPS growth year-over-year is -76.9%.

  • Net margin is -14.3%.

  • Operating margin is -28.3%.

  • Earnings quality is 0.46.

These figures reveal severely deteriorating earnings performance accompanied by low cash conversion efficiency.

SEC filings

Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.

Market cap $2.5B · 52-week range $18.70–$147.40 · market data as of Sep 2, 2026, 11:07 AM ET · latest SEC filing: 2026-07-27

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Analyze AEHR with Investru AI

Not investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.