- Net operating cash flow has significantly decreased to -$0.60 million or 165.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, AEHR TEST SYSTEMS's return on equity significantly trails that of both the industry average and the S&P 500.
- AEHR's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
- The gross profit margin for AEHR TEST SYSTEMS is rather high; currently it is at 51.57%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, AEHR's net profit margin of 3.77% significantly trails the industry average.
- This stock has increased by 53.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AEHR do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 67 points (0.4%) at 16,903 as of Friday, June 6, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,246 issues advancing vs. 764 declining with 128 unchanged. The Electronics industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.3%. Top gainers within the Electronics industry included Trio-Tech International ( TRT), up 7.5%, LGL Group ( LGL), up 3.1%, Bio-Rad Laboratories ( BIO.B), up 3.5%, Advanced Photonix ( API), up 1.8% and Aehr Test Systems ( AEHR), up 1.5%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Aehr Test Systems ( AEHR) is one of the companies that pushed the Electronics industry higher today. Aehr Test Systems was up $0.03 (1.5%) to $2.32 on light volume. Throughout the day, 2,000 shares of Aehr Test Systems exchanged hands as compared to its average daily volume of 17,500 shares. The stock ranged in a price between $2.21-$2.32 after having opened the day at $2.21 as compared to the previous trading day's close of $2.29. Aehr Test Systems designs, engineers, develops, manufactures, and sells test and burn-in equipment used in the semiconductor industry worldwide. Aehr Test Systems has a market cap of $25.1 million and is part of the technology sector. Shares are down 26.4% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Aehr Test Systems a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Aehr Test Systems as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow. Highlights from TheStreet Ratings analysis on AEHR go as follows: