Stock fact sheet · data as of
Aehr Test Systems (AEHR): fair value, margin of safety and Wheel Score
Ticker symbol AEHR · Technology · Semiconductors · United States · Blend
Is AEHR undervalued?
At 60.84 (close of 5 Nov 2026), AEHR trades 2541% over the GLS average fair value of 2.30, with 0 of 6 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The 6 models disagree widely: GLS Growth gives 0.1919 while DCF gives 4.34. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for AEHR, so the nightly engine files it under Blend (value score 4, growth score 12, out of 100).
Nine valuation models for AEHR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 4.34 | -93% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 3.17 | -95% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 3.75 | -94% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.64 | -97% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.1919 | -100% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 0.7286 | -99% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 4.82 | -92% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 132.50 | +118% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: AEHR passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.1 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC -3.1%, ROE -3.2%, ROA -2.9% - with debt at 0.05 times equity and negative free cash flow.
Aehr Test Systems pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Systems 62%, Contactors 24%, Services 15% (quarter Q1 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 20 Oct 2026.
| Piotroski F-score | 4 / 9 | ROIC | -3.1% |
|---|---|---|---|
| GLS Moat | 3.1 / 10 | ROE | -3.2% |
| Debt / equity | 0.05 | ROA | -2.9% |
| Free-cash-flow yield | -0.3% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 21: Weak
AEHR scores 21 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 2541% above our fair value; and filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 7, a premium worth selling - implied volatility 109% (over 80%), and the parts are thin too - value weak, premium weak, moat weak, health fair, red flags good, option trading strong, stability weak. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 109%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 45,968 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 4.0M shares a day on a market cap of $2.0B, with a beta of 3.37 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 2541% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 109% (over 80%) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 2541% above fair value | |
| Premium | Weak | implied volatility 109% | |
| Moat | Weak | moat 3.1/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Strong | 8,686 contracts a day, 45,968 open interest | |
| Stability | Weak | beta 3.37, $2.0B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 8 Jan 2027, 64 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Aehr Test Systems by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
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| HIMX Himax Technologies, Inc. | 10.44 | 4.83 | -116% | 33Weak | $1.8B |
| VECO Veeco Instruments Inc. | 36.00 | 17.03 | -111% | 25Weak | $2.2B |
| IMOS ChipMOS TECHNOLOGIES Inc. | 51.19 | 40.18 | -27% | 33Weak | $1.8B |
| OUST Ouster, Inc. | 33.54 | - | - | 20Weak | $2.4B |
| NVTS Navitas Semiconductor Corp | 9.33 | - | - | 20Weak | $2.4B |
| PLAB Photronics, Inc. | 27.38 | 36.33 | +25% | 42Weak | $1.6B |
| PENG Penguin Solutions, Inc. | 48.35 | 81.39 | +41% | 37Weak | $2.5B |
| POWI Power Integrations, Inc. | 46.80 | 20.64 | -127% | 35Weak | $2.6B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about AEHR
Is AEHR undervalued right now?
No: at 60.84 the stock trades 2541% above the GLS average fair value of 2.30 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of AEHR and what does it mean?
AEHR scores 21 out of 100 (Weak) - it fails Wheel Trade Filters 3, 4, 7. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for AEHR?
2.30 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Aehr Test Systems report earnings next?
The next earnings report is due on 8 Jan 2027, 64 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does AEHR have listed options, and how liquid are they?
Yes. The nightly snapshot found 616 listed contracts with 45,968 open interest across all expiries and implied volatility of 109% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.