MeritValue

AEHR TEST SYSTEMS

AEHRdata completeness 88%17 fiscal years on file
The thesis, from the filings

AEHR TEST SYSTEMS earns about 19% on invested capital, but has diluted owners by 10% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $3.19 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$50.8M1$65M2$66.2M3$59M3$50M3
Net income$9.45M4$14.6M5$33.2M6−$3.91M6−$7.13M6
Operating cash flow$1.51M7$10M8$1.76M9−$7.4M9−$3.31M9
Capital expenditure$416,00010$1.36M11$749,00012$4.99M12$2.07M12
Free cash flow (derived)$1.09M7$8.65M8$1.01M9−$12.4M9−$5.38M9
Total debt$013————
Cash & equivalents$31.5M14$30.1M15$49.2M16$24.5M17$116.4M17
Diluted shares27.8M29.2M29.6M29.6M30.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$71.57
your share of equity
Profit it earned you last year
−$2.32
Free cash flow it threw off
−$1.75
Debt you’d be carrying
—

10 shares is a claim on $71.57 of net worth that earned you −$2.32 and generated −$1.75 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
19% avg · 5y
FY22 49%FY23 35%FY24 24%FY25 -2%FY26 -8%

It earned an average 19% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$3.19
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$9.45M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-05-31 · accession 0001654954-24-009642 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-05-31 · accession 0001654954-25-008553 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-05-31 · accession 0001654954-26-006919 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-05-31 · accession 0001654954-24-009642 (NetIncomeLoss)
  5. 10-K · period ending 2023-05-31 · accession 0001654954-25-008553 (NetIncomeLoss)
  6. 10-K · period ending 2024-05-31 · accession 0001654954-26-006919 (NetIncomeLoss)
  7. 10-K · period ending 2022-05-31 · accession 0001654954-24-009642 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-05-31 · accession 0001654954-25-008553 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-05-31 · accession 0001654954-26-006919 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-05-31 · accession 0001654954-24-009642 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-05-31 · accession 0001654954-25-008553 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-05-31 · accession 0001654954-26-006919 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-05-31 · accession 0001654954-22-011877 (LongTermDebtCurrent)
  14. 10-K · period ending 2022-05-31 · accession 0001654954-23-011271 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-05-31 · accession 0001654954-24-009642 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-05-31 · accession 0001654954-25-008553 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2025-05-30 · accession 0001654954-26-006919 (CashAndCashEquivalentsAtCarryingValue)