Aehr Test SystemsAEHR -17.11%62 Return-on-Tangible-Equity is -11.23% as of Feb. 2026. GuruFocus rates AEHR with a GF Score™ of 62/100 and a GF Value™ of $14.73 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 984 Semiconductors companies, Aehr Test Systems ranks worse than 79.98% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Aehr Test Systems's annualized net income for the quarter that ended in Feb. 2026 was $-12.81 Mil. Aehr Test Systems's average shareholder tangible equity for the quarter that ended in Feb. 2026 was $114.07 Mil. Therefore, Aehr Test Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was -11.23%.
The historical rank and industry rank for Aehr Test Systems's Return-on-Tangible-Equity or its related term are showing as below:
AEHR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -351.1 Med: -9.78 Max: 35.42
Current: -10.71
During the past 13 years, Aehr Test Systems's highest Return-on-Tangible-Equity was 35.42%. The lowest was -351.10%. And the median was -9.78%.
AEHR's Return-on-Tangible-Equity is ranked worse than 79.98% of 984
companies
in the Semiconductors industry
Industry Median: 5.24
vs AEHR: -10.71
Aehr Test Systems (NAS:AEHR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Aehr Test Systems Return-on-Tangible-Equity Related Terms
Aehr Test Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aehr Test Systems's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AEHR vs COHU, AMBA, ICHR: Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, Aehr Test Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Aehr Test Systems Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Aehr Test Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aehr Test Systems's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -11.23% mean?
Aehr Test Systems (AEHR) has a Return-on-Tangible-Equity of -11.23% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Aehr Test Systems and its competitors. According to the industry distribution chart, Aehr Test Systems ranks #787 out of 984 companies in the Semiconductors industry, placing it in the top 80%.
Is Aehr Test Systems' Return-on-Tangible-Equity too high?
Aehr Test Systems' current Return-on-Tangible-Equity is -11.23%. Based on the distribution chart, Aehr Test Systems ranks #787 out of 984 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Aehr Test Systems has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aehr Test Systems' Return-on-Tangible-Equity compare to COHU and AMBA?
According to the Semiconductors industry distribution chart, Aehr Test Systems ranks #787 out of 984 companies for Return-on-Tangible-Equity. This places Aehr Test Systems in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.24. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.24, based on 984 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Aehr Test Systems and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aehr Test Systems's current Return-on-Tangible-Equity is -11.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aehr Test Systems stock overvalued right now?
Based on GuruFocus' analysis, Aehr Test Systems (AEHR) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.73, compared to a current price of $69.97 — trading 375% above its estimated fair value. The current Return-on-Tangible-Equity is -11.23%. Aehr Test Systems' overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Aehr Test Systems (AEHR), the current Return-on-Tangible-Equity is -11.23% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Aehr Test Systems (AEHR) Overvalued in 2026?
Based on GuruFocus' analysis, Aehr Test Systems stock appears to be overvalued.
The current stock price of $69.97 is trading 375% above its estimated GF Value™ of $14.73.
GuruFocus considers Aehr Test Systems to be Significantly Overvalued.
Key valuation signals for AEHR:
Return-on-Tangible-Equity: -11.23%
GF Value™: $14.73 vs. price of $69.97 (375% above fair value)
No single metric tells the full story. See the AEHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aehr Test Systems is engaged in test systems for burning-in and testing logic, optical, and memory integrated circuits. Increased quality and reliability needs of the Automotive and Mobility integrated circuit markets. The Company operates in one business segment, the designing, manufacturing, marketing and selling of advanced test and burn-in products to the semiconductor manufacturing industry in several geographic areas. The company provides production solutions across the product manufacturing flow to improve yield and reliability and has developed and introduced several inventive products, including the ABTSTM and FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier and FOX DiePak Loader.
62GF Score
Get the complete analysis for AEHR
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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