Kulicke & Soffa Industries Inc (NASDAQ: KLIC)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0000056978
Market Cap 3.80 Bn
P/B 4.61
P/E -58.81
P/S 5.53
ROIC (Qtr) -6.24
Div Yield % 1.16
Rev 1y % (Qtr) 20.17
Total Debt (Qtr) 36.98 Mn
Debt/Equity (Qtr) 0.04

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 85.73M provides robust 2.32x coverage of total debt 36.98M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 282.13M provide 47.88x coverage of short-term debt 5.89M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 85.73M provides exceptional 583.20x coverage of interest expenses 147000, showing strong debt service capability.
  • Strong tangible asset base of 1.04B provides 28.12x coverage of total debt 36.98M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 76.26M exceeds capital expenditure of 9.47M by 8.05x, indicating strong organic growth funding capability.

Bear case

  • Investment activities of 38.95M provide weak support for R&D spending of 152.18M, which is 0.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 85.73M provides thin coverage of dividend payments of (54M) with a -1.59 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 282.13M provide limited coverage of acquisition spending of (73000), which is -3864.77x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 85.73M shows concerning coverage of stock compensation expenses of 27.71M, with a 3.09 ratio indicating potential earnings quality issues.
  • Operating earnings of (49.81M) show weak coverage of depreciation charges of 16.92M, with a -2.94 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 596.49 Bn 243.99 49.68 3.18 Bn
2 AMAT Applied Materials Inc /De 306.44 Bn 110.83 20.97 6.56 Bn
3 LRCX Lam Research Corp 292.93 Bn 47.14 14.25 4.48 Bn
4 KLAC Kla Corp 190.42 Bn 41.78 14.94 5.89 Bn
5 TER Teradyne, Inc 49.92 Bn 61.37 15.61 0.27 Bn
6 ENTG Entegris Inc 16.38 Bn 147.43 21.20 3.91 Bn
7 NVMI Nova Ltd. 13.55 Bn 55.28 15.88 0.88 Bn
8 ONTO Onto Innovation Inc. 10.25 Bn 58.57 10.23 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.25 3.78
EV to Cash from Ops. EV/CFO 42.27 31.10
EV to Debt EV to Debt 97.98 2,381.40
EV to EBIT EV/EBIT -72.75 33.45
EV to EBITDA EV/EBITDA -65.73 21.36
EV to Free Cash Flow [EV/FCF] EV/FCF 47.52 76.88
EV to Market Cap EV to Market Cap 0.95 0.93
EV to Revenue EV/Rev 5.27 57.80
Price to Book Value [P/B] P/B 4.61 9.83
Price to Earnings [P/E] P/E -58.81 39.76
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.20 0.91
Dividend Payout Ratio % Div Payout % (Qtr) -68.00 3.71
Dividend per Basic Share Div per Share (Qtr) 0.82 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 56.24 8.75
Interest Coverage Int. cover (Qtr) -338.86 69.41
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 56.76 -55.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.37 22.64
Dividend Growth (1y) % Div 1y % (Qtr) 1.86 6.33
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2,019.86 -204.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -487.63 -87.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -315.24 -107.43
EBT Growth (1y) % EBT 1y % (Qtr) -316.75 -121.11
EPS Growth (1y) % EPS 1y % (Qtr) -1,105.00 -283.91
FCF Growth (1y) % FCF 1y % (Qtr) 115.59 59.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.02 43.54
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.57 0.05
Cash Ratio Cash Ratio (Qtr) 1.43 1.54
Current Ratio Curr Ratio (Qtr) 4.64 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.29
Interest Cover Ratio Int Coverage (Qtr) -338.86 69.41
Times Interest Earned Times Interest Earned (Qtr) -338.86 69.41
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4.80 -1,802.89
EBIT Margin % EBIT Margin % (Qtr) -7.24 -1,926.71
EBT Margin % EBT Margin % (Qtr) -7.27 -1,933.27
Gross Margin % Gross Margin % (Qtr) 42.10 22.64
Net Profit Margin % Net Margin % (Qtr) -9.40 -2,101.38