Aehr Test Systems

AEHR

Semiconductors · Technology

Price

$101.73

-4.24 (-4.00%)

Market Cap

$3.32B

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through May 29, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count rising — dilution

+10.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 27.8M (2022) → 30.7M (2026)

Winston Score History

The full picture

Aehr Test Systems makes specialized equipment used to test and "burn in" semiconductor chips before they are shipped to customers. Burn-in means running chips under stress conditions to catch early failures — similar to breaking in a new pair of shoes to find weak spots. The company focuses on chips used in electric vehicles, solar inverters, and other power electronics, and its main customers are chip manufacturers around the world.

Aehr earns revenue by selling its FOX-P wafer-level test systems and related consumable parts called WaferPaks, which need to be replaced regularly and provide a recurring income stream. The company is small, with most of its sales tied to a handful of large customers, and it operates primarily in the US with sales into Asia and Europe. Its main growth driver is the expanding market for silicon carbide chips used in electric vehicles, but heavy customer concentration and the cyclical nature of semiconductor equipment spending are significant risks.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+40.2% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+151.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$13M/ year

↑ Rising (+21% vs prior year)

25.3% of revenue

1.7x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

5.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$116M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Aehr Test Systems grew revenue 40% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

40.6%

Healthy — 40.6% gross margin

Profit after running costs

Operating Margin

-5.0%

Losing money on operations — -5.0%

Return on the money invested

ROCE

-6.4%

Weak — -6.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-13.7%

Shrinking sales (-13.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-10.6%

Burning cash (-10.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.00

Conservative — low debt load (0.00)

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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