Aehr Test Stock Story

AEHR -  USA Stock  

USD 11.90  0.75  6.73%

As many millenniums are excited about technology space, it is only fair to sum up Aehr Test Systems. We will evaluate why we are still confident in anticipation of a recovery. What is the firm valuation so far in 2021? We are going to cover Aehr Test Systems perspective on valuation to give investors a better transparency on taking a position in it.
Published over a week ago
View all stories for Aehr Test | View All Stories
Is Aehr Test (NASDAQ:AEHR) ready for a correction?
The company currently holds 4.82 M in liabilities with Debt to Equity (D/E) ratio of 0.42, which is about average as compared to similar companies.
Aehr Test holds a performance score of 16 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of -5.8484, which signifies a somewhat significant risk relative to the market. Let's try to break down what Aehr Test's beta means in this case. As returns on the market increase, returns on owning Aehr Test are expected to decrease by larger amounts. On the other hand, during market turmoil, Aehr Test is expected to outperform it. Although it is essential to pay attention to Aehr Test Systems historical returns, it is also good to be reasonable about what you can do with equity current trending patterns. Our philosophy in foreseeing future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Aehr Test Systems expected return of 3.11 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use Aehr Test value at risk, and the relationship between the jensen alpha and skewness to analyze future returns on Aehr Test.
We determine the current worth of Aehr Test Systems using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aehr Test Systems based exclusively on its fundamental and basic technical indicators. By analyzing Aehr Test's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Aehr Test's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Aehr Test. We calculate exposure to Aehr Test's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aehr Test's related companies.

Aehr Test Systems Investment Alerts

Aehr Test investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Aehr Test Systems performance across your portfolios.Please check all investment alerts for Aehr Test

Aehr Test Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Aehr Test value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aehr Test competition to find correlations between indicators driving the intrinsic value of Aehr Test.

How Aehr Test utilizes its cash?

To perform a cash flow analysis of Aehr Test, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Aehr Test is receiving and how much cash it distributes out in a given period. The Aehr Test cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Aehr Test Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Aehr Test reported last year Net Cash Flow from Operations of (2.7 Million)

What is the case for Aehr Test Investors

Aehr Test Systems reported the previous year's revenue of 16.6 M. Net Loss for the year was (2.03 M) with profit before overhead, payroll, taxes, and interest of 6.03 M.

Margins Breakdown

Aehr Test profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Aehr Test itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Aehr Test profit margins.
EBITDA Margin(0.12)
Gross Margin0.36
Profit Margin(0.13)

Aehr Test Average Assets is increasing over the last 8 years. Further, Aehr Test Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Aehr Test Average Assets is relatively stable at the moment. Further, Aehr Test Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment.

Are Aehr Test technical ratios showing a turnaround?

The expected short fall is down to -8.74 as of today. Aehr Test Systems is displaying above-average volatility over the selected time horizon. Investors should scrutinize Aehr Test Systems independently to ensure intended market timing strategies are aligned with expectations about Aehr Test volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aehr Test's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aehr Test's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Aehr Test

While some other firms within the semiconductor equipment & materials industry are still a little expensive, even after the recent corrections, Aehr Test may offer a potential longer-term growth to retail investors. While some before the next press release oriented retail investors may not share our view, we believe it may not be a good time to take over new shares of Aehr Test.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Aehr Test Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to