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Fundamental analysis: Aehr Test Systems (AEHR)

Awarener score: 4.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Bottom) and growth (Excellent), and the company's inclination to return cash to the stockholders (Very poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

  • Business has been growing at an excellent pace. It's been great when measured against peer companies.
  • Aehr Test Systems business varies wildly, ups and downs could be very frequent. It's very risky. It looks bottom tier against rivals.

Margins score: 4.2

  • AEHR profit margins -on goods and services sold- are usually sufficient. They stand mediocre against rival companies.
  • Business profit on sales tends to be meagre. It's substantially worse when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very poor. They remain in a very weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still worse than most similar companies.
  • Profits -before income taxes- are usually meagre considering total sales, and remain substantially worse when measured against rivals.
  • Total net profit tends to be meagre when confronted to sales. Company stands substantially worse when measured against comparable firms.

Growth score: 2.1

  • Aehr Test Systems profit -on goods and services sold- has been growing at an excellent pace. It's been impressive in relation to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 5.0

  • AEHR had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
  • Research and development expenses consume a moderate portion of revenues. It's weak when measured against competitors.
  • The company shows good business growth in relation to research and development efforts. It stands a slight improvement compared to rival companies.

Profitability score: 4.0

  • Aehr Test Systems usually gets low returns on the resources it controls. It proves substantially worse when measured against peer firms.
  • The company normally gets low proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
  • Profitability -in relation to owned resources- is usually lacking. It ranks substantially worse when measured against competitors.
  • In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 4.5

  • AEHR usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands substantially worse when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is almost average when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.7

  • Aehr Test Systems has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
  • The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be in good shape compared to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
  • A substantial portion of resources controlled are already cash or short-term investments, which is better for liquidity. It looks top tier when measured against rivals.
  • For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on somewhat more than three months credit. It still ranks almost average when measured against peers.
  • Normally has approximately six months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
  • On average, it takes a lot of months from the purchase to charging customers. It happens to be worse than most peers.
  • On average pays suppliers two months after the purchase. It ranks similar to industry peers.
  • The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's in a very weak position compared to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands bottom tier against rival firms.
  • Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks last-in-rank when measured against comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 3.9

  • Aehr Test Systems looks heavily expensive in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands bottom tier against similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still last-in-rank when measured against industry firms.
  • In the past twelve months, the company has largely enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among a lot more stockholders. It came up in a very weak position compared to peer ventures.
  • The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be substantially worse when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 4.3


AEHR logos

Company at a glance: Aehr Test Systems (AEHR)

Sector, industry: Technology, Semiconductor Equipment & Materials

Market Cap: 0.42 billions

Revenues TTM: 0.05 billions

Aehr Test Systems provides test systems for burning-in semiconductor devices in wafer level, singulated die, and package part form worldwide. Its products include ABTS system that is used in the production and qualification testing of packaged parts for lower power and higher power logic devices, as well as for common types of memory devices; and FOX-XP and FOX-NP systems that are full wafer contact and singulated die/module test and burn-in systems for burn-in and functional test of complex devices, such as leading-edge silicon carbide-based power semiconductors, memories, digital signal processors, microprocessors, microcontrollers, systems-on-a-chip, and integrated optical devices. The company's products also comprise FOX-CP system, a single-wafer compact test and reliability verification solution for logic, memory, and photonic devices; FOX WaferPak Aligner; FOX WaferPak Contactor, which contains a full wafer probe card capable of testing wafers up to 300mm that enables IC manufacturers to perform test and burn-in of full wafers on its FOX systems; FOX DiePak Carrier, a reusable temporary package that enables IC manufacturers to perform final test and burn-in of bare die and modules; and FOX DiePak Loader. Aehr Test Systems was incorporated in 1977 and is headquartered in Fremont, California.

Awarener score: 4.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Bottom) and growth (Excellent), and the company's inclination to return cash to the stockholders (Very poor).