Aehr Test SystemsAEHR -7.10%62 Altman Z-Score is 95.29 as of Jun. 27, 2026, which is 3593% above its 10-year median of 2.58. GuruFocus rates AEHR with a GF Score™ of 62/100 and a GF Value™ of $14.36 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,015 Semiconductors companies, Aehr Test Systems ranks better than 97.44% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 95.29 is strong.
Aehr Test Systems has a Altman Z-Score of 95.29, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Aehr Test Systems's Altman Z-Score or its related term are showing as below:
AEHR'
s Altman Z-Score Range Over the Past 10 Years
Min: -7.87 Med: 2.58 Max: 95.29
Current: 95.29
During the past 13 years, Aehr Test Systems's highest Altman Z-Score was 95.29. The lowest was -7.87. And the median was 2.58.
Aehr Test Systems (NAS:AEHR) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Aehr Test Systems Altman Z-Score Related Terms
Aehr Test Systems Altman Z-Score Historical Data
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The historical data trend for Aehr Test Systems's Altman Z-Score 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 AMBA, ICHR, COHU: Altman Z-Score Comparison
For the Semiconductor Equipment & Materials subindustry, Aehr Test Systems's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Aehr Test Systems's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Aehr Test Systems's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Aehr Test Systems's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.555
+
1.4
*
-0.2011
+
3.3
*
-0.0908
+
0.6
*
158.1967
+
1.0
*
0.2882
=
95.29
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Aehr Test Systems (AEHR) has a Altman Z-Score of 95.29 as of Jun. 27, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Aehr Test Systems and its competitors. This is 3593% above median its historical median of 2.58. According to the industry distribution chart, Aehr Test Systems ranks #26 out of 1015 companies in the Semiconductors industry, placing it in the top 2.6%.
Is Aehr Test Systems' Altman Z-Score too high?
Aehr Test Systems' current Altman Z-Score of 95.29 is 3593% above median its 10-year median of 2.58. The Semiconductors industry median Altman Z-Score is 5.54. Aehr Test Systems' value of 95.29 is 1620% above this industry median. Based on the distribution chart, Aehr Test Systems ranks #26 out of 1015 companies in the Semiconductors industry, which is in the top quartile — a strong position 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' Altman Z-Score compare to AMBA and ICHR?
According to the Semiconductors industry distribution chart, Aehr Test Systems ranks #26 out of 1015 companies for Altman Z-Score. This places Aehr Test Systems in the top 3% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 5.54. Aehr Test Systems' value of 95.29 is 1620% above this benchmark. While the company's 10-year median is 2.58 vs. the industry median of 5.54, Aehr Test Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Semiconductors company?
The median Altman Z-Score among Semiconductors companies is 5.54, based on 1,015 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aehr Test Systems's current Altman Z-Score of 95.29 is 1620% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Aehr Test Systems and its competitors. For the Semiconductors industry, the median Altman Z-Score is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aehr Test Systems's current Altman Z-Score is 95.29, which is 3593% above median its own 10-year median of 2.58. 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 $14.36, compared to a current price of $91.81 — trading 539.3% above its estimated fair value. The current Altman Z-Score is 95.29, which is 3593% above median its 10-year median of 2.58 and 1620% above the Semiconductors industry median of 5.54. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Aehr Test Systems (AEHR), the current Altman Z-Score is 95.29 as of Jun. 27, 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 $91.81 is trading 539.3% above its estimated GF Value™ of $14.36.
GuruFocus considers Aehr Test Systems to be Significantly Overvalued.
Key valuation signals for AEHR:
Altman Z-Score: 95.29 (3593% above median its 10-year median of 2.58)
GF Value™: $14.36 vs. price of $91.81 (539.3% above fair value)
Industry Position: 1620% above the Semiconductors median (#26 of 1015)
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
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