The company is overvalued at 6.65 per share with modest projections ahead.
The firm shows a Beta (market volatility) of 2.2208, 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 the market goes up, the company is expected to outperform it. However, if the market returns are negative, Aehr Test will likely underperform. Although it is important to respect
Aehr Test Systems historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy in foreseeing
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Aehr Test Systems technical indicators, you can presently evaluate if the expected return of 0.0208% will be sustainable into the future.
Aehr Test Systems right now shows a risk of 5.04%. Please confirm Aehr Test Systems
value at risk, and the
relationship between the
jensen alpha and
skewness to decide if Aehr Test Systems will be following its
price patterns.
The performance of Aehr Test Systems in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Aehr Test's
stock prices. When investing in Aehr Test, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Aehr Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Aehr Test carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Aehr Test's Liquidity
Aehr Test
financial leverage refers to using borrowed capital as a funding source to finance Aehr Test Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aehr Test financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Aehr Test's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Aehr Test's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Aehr Test's total debt and its cash.
Aehr Test Gross Profit
Aehr Test Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aehr Test previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Aehr Test Gross Profit growth over the last 10 years. Please check Aehr Test's
gross profit and other
fundamental indicators for more details.
What is the case for Aehr Test Investors
Aehr Test Systems retains a total of 26.56 Million outstanding shares. 30% of Aehr Test Systems
outstanding shares are owned by
other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulation than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or about to change. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| 2019 | 2020 | 2021 | 2022 (projected) |
Revenues USD | 22.29 M | 16.6 M | 19.09 M | 20.74 M | Revenues | 22.29 M | 16.6 M | 19.09 M | 20.74 M |
Ownership Breakdown
| Retail Investors48.03% | Insiders9.09% | Institutions42.88% |
| Retail Investors | 48.03 |
| Insiders | 9.09 |
| Institutions | 42.88 |
Another 3 percent spike for Aehr Test
Latest value at risk is at -8.99.
As of the 19th of July, Aehr Test shows the
risk adjusted performance of 0.005, and Mean Deviation of 4.05. Aehr Test Systems
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have analyze and collected data for nineteen
technical drivers for Aehr Test Systems, which can be compared to its rivals. Please confirm
Aehr Test Systems variance, as well as the
relationship between the value at risk and
skewness to decide if Aehr Test Systems is priced correctly, providing market reflects its regular price of 9.2 per share. Given that Aehr Test has
jensen alpha of 0.3066, we suggest you to validate Aehr Test Systems's prevailing market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Aehr Test Investment
When is the right time to buy or sell Aehr Test Systems? Buying stocks such as Aehr Test isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
The inconsistency in the assessment between current Aehr Test valuation and our trade advice on Aehr Test is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Aehr Test.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of Aehr Test Systems. Please refer to our
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