Forensic Analysis · Industrials / Manufacturing / Defense · as of Sep 25, 2026
Aehr Test Systems (AEHR)
A forensic read on Aehr Test Systems built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
16.3
Distress distance
Clean
Earnings quality
5
Forensic signals
-406.5
P / E (ttm)
-3.2%
ROE
$3.2B
Market cap
0.00%
Dividend yield
-15.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Aehr Test Systems earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 16.2, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
-0.40×
FY2024–FY2026
Cash conversion.Over FY2024–FY2026, cumulative operating cash flow was -0.40× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
128d DSO
FY2025→FY2026
Receivables vs revenue.Days sales outstanding moved from 88 to 128 days FY2025→FY2026 (receivables +23% vs revenue -15%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections. Only -40¢ of operating cash arrived for every dollar of profit reported over FY2024–FY2026 (-$9.0M against $22.1M), and the receivables balance is one of the places the rest is sitting. Across FY2024–FY2026 the day count ran 54 → 88 → 128 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter. Deferred revenue grew +160% over the same period, but billing ahead of recognition does not account for this one: that pattern leaves the day count steady and the cash arriving early, and here the day count has climbed across the years on file while the cash did not arrive. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2025's opening balance is on file, but across the 3 fiscal years read here (FY2024–FY2026) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
-9.9%
FY2026
Return on invested capital.Return on invested capital is -9.9% in the latest fiscal year and slipping across FY2024–FY2026 from 13.3%. After-tax operating profit was $9M in FY2024 and ($11M) in FY2026, with operating income at 15.2% of revenue in FY2024, -9.6% in FY2025 and -28.3% in FY2026. The capital base behind it grew +65% across FY2024–FY2026, from $68M to $112M, while the return fell 23.2 points, so the dollars added over that window earned less than the 13.3% the older base was already earning. FY2025's operating profit carried a $864,000 restructuring charge and a $584,000 asset write-down that alone took about 1.1 points off that year's return; FY2025 sits between the two ends of FY2024–FY2026, so the charge shapes the path between them without moving the change across it.
Key fundamentals
Latest Revenue$50.0M
Revenue Growth YoY-15.2%
Revenue CAGR (2yr)-13.1%
Net Margin-14.3%
Free Cash Flow-$5.4M
Return on Equity-3.2%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Aehr Test Systems's actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 25, 2026. Forensic signals flag probability, not certainty.
Aehr Test Systems (AEHR) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
+1.8%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +4% over the last 2 years to FY2026 (+1.8%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~3%.
470d
FY2025→FY2026
Inventory days.Days inventory outstanding moved from 414 to 470 FY2025→FY2026 (against cost of goods sold; inventory -2% vs -8% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.