Kulicke & Soffa Industries Inc (NASDAQ: KLIC)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0000056978
Market Cap 3.35 Bn
P/B 2.85
P/E 58.58
P/S 4.51
ROIC (Qtr) -0.35
Div Yield % 1.63
Rev 1y % (Qtr) -2.07
Total Debt (Qtr) 38.55 Mn
Debt/Equity (Qtr) 0.05

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 113.56M provides robust 2.95x coverage of total debt 38.55M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 215.71M provide 34.92x coverage of short-term debt 6.18M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 113.56M provides exceptional 847.50x coverage of interest expenses 134000, showing strong debt service capability.
  • Strong tangible asset base of 1.03B provides 26.70x coverage of total debt 38.55M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 96.57M exceeds capital expenditure of 17M by 5.68x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 113.56M provides thin coverage of dividend payments of (54.06M) with a -2.10 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of 27.66M provide weak support for R&D spending of 149.62M, which is 0.18x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 113.56M shows concerning coverage of stock compensation expenses of 28.53M, with a 3.98 ratio indicating potential earnings quality issues.
  • Operating earnings of 20.61M show weak coverage of depreciation charges of 17.97M, with a 1.15 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 96.57M represents just -234.39x of debt issuance (412000), suggesting concerning reliance on leverage rather than internal cash generation for growth.

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 545.55 Bn 81.60 25.80 3.18 Bn
2 LRCX Lam Research Corp 270.12 Bn 366.11 84.92 4.48 Bn
3 AMAT Applied Materials Inc /De 260.74 Bn 38.58 9.28 6.56 Bn
4 KLAC Kla Corp 207.40 Bn 64.64 19.12 5.89 Bn
5 TER Teradyne, Inc 47.70 Bn 421.67 28.58 0.27 Bn
6 ENTG Entegris Inc 15.99 Bn 199.19 14.79 3.91 Bn
7 NVMI Nova Ltd. 12.80 Bn 52.23 15.01 0.88 Bn
8 AMKR Amkor Technology, Inc. 11.99 Bn 21.67 2.07 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.71 3.68
EV to Cash from Ops. EV/CFO 17.27 27.99
EV to Debt EV to Debt 77.67 2,137.46
EV to EBIT EV/EBIT 41.39 47.14
EV to EBITDA EV/EBITDA 43.84 30.10
EV to Free Cash Flow [EV/FCF] EV/FCF 23.10 68.49
EV to Market Cap EV to Market Cap 0.89 0.93
EV to Revenue EV/Rev 4.03 55.25
Price to Book Value [P/B] P/B 2.85 11.74
Price to Earnings [P/E] P/E 58.58 58.42
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.93
Dividend Payout Ratio % Div Payout % (Qtr) 20,500.00 667.25
Dividend per Basic Share Div per Share (Qtr) 0.82 0.62
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 44.96 8.52
Interest Coverage Int. cover (Qtr) 153.81 86.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.43 -57.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.04 21.17
Dividend Growth (1y) % Div 1y % (Qtr) 2.50 6.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 100.31 -69.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 121.77 -68.67
EBIT Growth (1y) % EBIT 1y % (Qtr) 135.37 -68.41
EBT Growth (1y) % EBT 1y % (Qtr) 135.09 -76.59
EPS Growth (1y) % EPS 1y % (Qtr) 100.32 -164.09
FCF Growth (1y) % FCF 1y % (Qtr) 547.42 70.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.41 43.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.59 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.41 0.04
Cash Ratio Cash Ratio (Qtr) 1.15 1.52
Current Ratio Curr Ratio (Qtr) 4.79 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.30
Interest Cover Ratio Int Coverage (Qtr) 153.81 86.73
Times Interest Earned Times Interest Earned (Qtr) 153.81 86.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.90 -1,802.55
EBIT Margin % EBIT Margin % (Qtr) 3.15 -1,926.38
EBT Margin % EBT Margin % (Qtr) 3.13 -1,932.94
Gross Margin % Gross Margin % (Qtr) 42.50 22.58
Net Profit Margin % Net Margin % (Qtr) 0.00 -2,101.05