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AEHRAehr Test Systems
$66.94$2.1B
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  4. Financial Ratios

Aehr Test Systems (AEHR) Financial Ratios

Latest Ratios: P/E Ratio -514.9x · EV/EBITDA N/A · ROE -3.3%. (1997–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

AEHR Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.1B$282M$341M$965M$233M$53M$38M$39M$59M$75M$13M
Enterprise Value$2.1B$268M$298M$941M$202M$53M$36M$34M$48M$63M$18M
P/E Ratio →-514.92—10.2866.0424.65———130.00——
P/S Ratio35.714.795.1514.854.583.181.691.862.003.940.91
P/B Ratio16.122.303.0512.764.564.612.692.543.074.44—
P/FCF——338.52111.54213.14——————
P/OCF——194.1396.36154.34——————

P/E links to full P/E history page with 30-year chart

AEHR EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—4.544.5014.483.983.191.631.601.643.321.26
EV / EBITDA——26.0468.0624.95———36.41——
EV / EBIT——23.9164.3721.20———56.79——
EV / FCF——295.86108.79185.23——————

AEHR Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin40.6%40.6%49.1%50.4%46.6%36.3%37.6%36.1%41.9%35.9%35.5%
Operating Margin-7.3%-7.3%15.2%20.6%15.3%-25.2%-11.4%-20.3%3.1%-26.1%-42.4%
Net Profit Margin-6.6%-6.6%50.1%22.4%18.6%-12.2%-12.6%-24.9%1.8%-29.9%-46.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-3.3%-3.3%35.4%23.0%30.3%-15.9%-19.0%-30.1%2.9%-70.4%-354.6%
ROA-2.8%-2.8%29.3%18.1%22.5%-9.6%-13.4%-20.0%1.7%-27.6%-54.5%
ROIC-3.7%-3.7%12.5%27.7%36.3%-25.9%-16.9%-34.5%10.1%-78.6%-129.8%
ROCE-3.4%-3.4%10.1%20.1%24.4%-28.5%-15.7%-24.0%4.3%-34.7%-89.7%

AEHR Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.090.090.060.080.020.420.28—0.320.36—
Debt / EBITDA——0.540.460.12———4.59——
Net Debt / Equity—-0.12-0.38-0.31-0.600.02-0.11-0.35-0.56-0.70—
Net Debt / EBITDA——-3.76-1.72-3.76———-8.06——
Debt / FCF——-42.66-2.75-27.91——————
Interest Coverage—————-46.91—-19.672.14-7.30-10.20

Net cash position: cash ($25M) exceeds total debt ($11M)

AEHR Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio5.685.689.315.465.452.124.573.632.643.731.87
Quick Ratio2.992.995.753.994.081.142.501.991.832.890.37
Cash Ratio1.611.614.682.942.860.511.410.981.512.260.20
Asset Turnover—0.400.520.660.820.771.080.990.950.611.44
Inventory Turnover0.830.830.901.351.801.191.741.481.901.831.33
Days Sales Outstanding—110.1255.1093.2492.34114.3860.8684.2335.2777.4513.14

AEHR Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——9.7%1.5%4.1%———0.8%——
FCF Yield——0.3%0.9%0.5%——————
Buyback Yield0.0%0.3%0.5%0.2%0.2%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.3%0.5%0.2%0.2%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$30M$30M$29M$28M$23M$23M$22M$23M$16M$13M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetHealthy
Cash FlowBurning
Top Statement Risk

EV market cyclicality

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Premium Valuation Amidst Earnings Contraction

According to current market data, AEHR trades at a price-to-sales ratio of 48.97, which appears significantly elevated relative to historical norms and peer averages, suggesting that investors are pricing in a recovery that remains disconnected from the company's recent negative earnings and contracting revenue growth trajectory.

The extreme P/S multiple indicates that the market continues to assign a 'pure-play' growth premium to the stock, likely tied to long-term Silicon Carbide adoption. However, given the lack of positive P/E or FCF metrics, this valuation appears highly speculative and vulnerable to further downward revisions if the current EV-related demand plateau persists.

Capital Efficiency Decay Under Pressure

Based on reported financial statements, AEHR's ROIC has deteriorated to -2.9% in 2026Q3, a sharp reversal from the 10.4% peak observed in 2024Q2, which highlights the company's struggle to generate adequate returns on its invested capital during the current industry-wide downturn in semiconductor equipment spending.

The collapse in ROIC reflects both the compression of operating margins and the inefficient utilization of assets as revenue volumes decline. This trend suggests that the company's capital allocation strategy is currently failing to create value, necessitating a potential reassessment of R&D and inventory investment levels until demand stabilizes.

Working Capital Bloat Strains Efficiency

As reported in recent filings, the cash conversion cycle has ballooned to 610 days in 2026Q3, driven primarily by an inventory turnover period of 550 days, which indicates a significant buildup of unsold hardware that is currently tying up liquidity and hindering operational efficiency.

The dramatic increase in DIO suggests that the company is holding substantial inventory that may be difficult to liquidate in the current market environment. Investors should monitor whether this inventory represents future revenue potential or if it risks becoming obsolete as the industry shifts toward newer wafer-level testing standards.

Robust Liquidity Buffers Operational Volatility

Based on the latest quarterly balance sheet, AEHR maintains a current ratio of 10.97, providing a substantial liquidity cushion that, according to historical data, remains well above industry averages and offers the company significant runway to navigate the current period of negative operating cash flow.

While the company is currently burning cash, the high liquidity position mitigates immediate solvency risks and provides management with the flexibility to maintain R&D spending. This financial strength is a critical differentiator, allowing the firm to survive the 'SiC winter' without the immediate need for dilutive equity financing.

Misapplication of P/S Valuation Multiples

The price-to-sales ratio is frequently misapplied to AEHR, as it obscures the lumpy, project-based nature of system acceptances and fails to account for the high-margin, recurring revenue potential of the consumable WaferPak business model, which is the true driver of long-term value creation.

Analysts should instead focus on the 'WaferPak attach rate' and the ratio of consumables revenue to total revenue to gauge the underlying health of the business. Relying on P/S multiples in a cyclical equipment market often leads to over-optimism during peaks and excessive pessimism during troughs, failing to capture the structural shift toward recurring revenue.

Download Financial Ratios Data

Includes 30+ ratios · 29 years · Updated daily

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AEHR — Frequently Asked Questions

Quick answers to the most common questions about buying AEHR stock.

What is Aehr Test Systems's P/E ratio?

Aehr Test Systems's current P/E ratio is -514.9x. The historical average is 43.3x.

What is Aehr Test Systems's ROE?

Aehr Test Systems's return on equity (ROE) is -3.3%. The historical average is -26.6%.

Is AEHR stock overvalued?

Based on historical data, Aehr Test Systems is trading at a P/E of -514.9x. Compare with industry peers and growth rates for a complete picture.

What are Aehr Test Systems's profit margins?

Aehr Test Systems has 40.6% gross margin and -7.3% operating margin.