Is Aehr Test Systems Stock (AEHR) a Good Investment?

By Adam Scheg
December 13, 2025
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Learn more about whether Aehr Test Systems, Inc. is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (AEHR) grades on certain investment factors and determine whether it meets your investment needs.

Latest Aehr Test Systems, Inc. Stock News

As of December 12, 2025, Aehr Test Systems, Inc. had a $735.0 million market capitalization, putting it in the 43rd percentile of companies in the Semiconductors & Semiconductor Equipment industry.

Aehr Test Systems, Inc. does not have a meaningful P/E due to negative earnings over the last 12 trailing months. Aehr Test Systems, Inc.’s trailing 12-month revenue is $56.8 million with a -11.7% profit margin. Year-over-year quarterly sales growth most recently was -16.0%. Analysts expect adjusted earnings to reach $0.085 per share for the current fiscal year. Aehr Test Systems, Inc. does not currently pay a dividend.



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Grading Aehr Test Systems, Inc. Stock

Before you choose to buy, sell or hold Aehr Test Systems, Inc. stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (AEHR) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Aehr Test Systems, Inc.’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Aehr Test Systems, Inc. Stock Growth Grade

Growth Grade:

Metric Metric Score AEHR Sector Median
Sales Growth 5yr Ann'l 40 21.5% 9.0%
Sales Increases YoY Last 5 yrs 60 3 of 5 3 of 5
Cash from Operations Ann'l Positive Last 5 yrs 60 3 of 5 4 of 5

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components‐consistency of annual sales growth, five‐year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.

Aehr Test Systems, Inc. has a Growth Score of 17, which is Very Weak.

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Aehr Test Systems, Inc. Stock Quality Grade

Quality Grade:

Metric Score AEHR Sector Median
Return on Assets (ROA) 29 (4.6%) 0.6%
Return on Invested Capital (ROIC) na 19.1%
Gross Income to Assets 44 14.3% 25.6%
Buyback Yield 38 (2.8%) (2.2%)
Change in Total Liabilities to Assets 68 (1.2%) 2.1%
Accruals to Assets 10 2.4% (6.3%)
Z Double Prime Bankruptcy Risk (Z) Score 91 11.47 5.61
F-Score 1 1 5

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Aehr Test Systems, Inc. has a Quality Score of 33, which is Weak.

Aehr Test Systems, Inc. Stock Momentum Grade

Momentum Grade:

Metric Score AEHR Sector Median
Relative Price Strength (Q1) 26 (17.0%) (7.0%)
Relative Price Strength (Q2) 98 121.0% (1.7%)
Relative Price Strength (Q3) 84 13.8% (2.5%)
Relative Price Strength (Q4) 31 (11.9%) (6.7%)
Relative Price Strength (weighted 4 qtr) 89 17.8% (2.3%)

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Aehr Test Systems, Inc. has a Momentum Score of 89, which is Very Strong.

Other Aehr Test Systems, Inc. Stock Grades

In addition to Growth, Momentum and Quality, A+ Investor also provides grades for Value and Estimate Revisions.

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AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.

The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Aehr Test Systems, Inc.’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Should I Buy Aehr Test Systems, Inc. Stock?

Overall, Aehr Test Systems, Inc. stock has a Growth Grade of F, Quality Grade of D, Momentum Grade of A .

Whether or not you should buy Aehr Test Systems, Inc. stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Aehr Test Systems, Inc. stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

Aehr Test Systems, Inc. (AEHR) Competitors

Companies similar to Aehr Test Systems, Inc. in the Semiconductors & Semiconductor Equipment industry.

Company name Ticker Market Cap
CEVA, Inc. CEVA $524.31Mil
Ichor Holdings, Ltd. ICHR $612.73Mil
AXT, Inc. AXTI $690.49Mil
SEALSQ Corp LAES $443.12Mil
indie Semiconductor, Inc. INDI $942.22Mil

Aehr Test Systems, Inc. Stock: Bottom Line

You can use the information about how Aehr Test Systems, Inc. is graded to determine if you should invest in this stock. However, you should decide whether Aehr Test Systems, Inc.’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether Aehr Test Systems, Inc. is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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