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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Aehr Test Systems's Sloan Ratio for the quarter that ended in May. 2026 was 0.02%.
As of May. 2026, Aehr Test Systems has a Sloan Ratio of 0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Aehr Test Systems (NAS:AEHR) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of May. 2026, Aehr Test Systems has a Sloan Ratio of 0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Aehr Test Systems Sloan Ratio % Related Terms
Aehr Test Systems Sloan Ratio % Historical Data
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The historical data trend for Aehr Test Systems's Sloan Ratio % 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: Sloan Ratio % Comparison
For the Semiconductor Equipment & Materials subindustry, Aehr Test Systems's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Aehr Test Systems's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aehr Test Systems's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Aehr Test Systems's Sloan Ratio for the fiscal year that ended in May. 2025 is calculated as
Aehr Test Systems's Net Income for the trailing twelve months (TTM) ended in May. 2026 was -2.084 (Aug. 2025 ) + -3.23 (Nov. 2025 ) + -3.203 (Feb. 2026 ) + 1.391 (May. 2026 ) = $-7.13 Mil.
Aehr Test Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was -0.282 (Aug. 2025 ) + -1.171 (Nov. 2025 ) + -3.689 (Feb. 2026 ) + 1.832 (May. 2026 ) = $-3.31 Mil.
Aehr Test Systems's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2026 was -1.391 (Aug. 2025 ) + -2.268 (Nov. 2025 ) + -0.074 (Feb. 2026 ) + -0.134 (May. 2026 ) = $-3.87 Mil.
* 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 Test Systems (AEHR) has a Sloan Ratio % of 0.02% as of May. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Aehr Test Systems and its competitors.
Is Aehr Test Systems' Sloan Ratio % too high?
Aehr Test Systems' current Sloan Ratio % is 0.02%. Overall, Aehr Test Systems has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aehr Test Systems' Sloan Ratio % compare to COHU and AMBA?
Aehr Test Systems' Sloan Ratio % of 0.02% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Semiconductors company?
A good Sloan Ratio % depends on the Semiconductors industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Aehr Test Systems and its competitors. Aehr Test Systems's current Sloan Ratio % is 0.02%. 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 $13.83, compared to a current price of $106.20 — trading 667.9% above its estimated fair value. The current Sloan Ratio % is 0.02%. Aehr Test Systems' overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Aehr Test Systems (AEHR), the current Sloan Ratio % is 0.02% as of May. 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 $106.20 is trading 667.9% above its estimated GF Value™ of $13.83.
GuruFocus considers Aehr Test Systems to be Significantly Overvalued.
Key valuation signals for AEHR:
Sloan Ratio %: 0.02%
GF Value™: $13.83 vs. price of $106.20 (667.9% 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.
53GF Score
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