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Cohu
(NASDAQ:COHU)
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Rating:63Neutral
Price Target:
$67.00
▲(32.15% Upside)
Action:Reiterated
Date:08/18/26
COHU scores in the low-to-mid range primarily because financial performance is still constrained by ongoing losses and declining free cash flow despite improving revenue and positive cash generation. Offsetting this, technicals are strong with the stock trading well above key moving averages and positive momentum, and the latest earnings call was supportive with raised growth/margin expectations and a growing HPC opportunity—tempered by supply-chain cost and capacity execution risks. Valuation remains a headwind due to negative earnings and no stated dividend yield.
Positive Factors
Strong Revenue Growth Outlook
Broad revenue acceleration indicates recovering semiconductor back-end demand and improving customer utilization. Sustained growth would expand the installed base, support recurring consumables revenue, and improve operating leverage over the next several quarters.
Negative Factors
Profitability Remains Weak
The company remains loss-making and has not restored historical profitability, limiting internal capital generation and returns on its equity base. Margin recovery depends on sustained volume growth, favorable mix, and controlling operating expenses.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth Outlook
Broad revenue acceleration indicates recovering semiconductor back-end demand and improving customer utilization. Sustained growth would expand the installed base, support recurring consumables revenue, and improve operating leverage over the next several quarters.
Read all positive factors
Cohu Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Tracks regional trends and shifts in Cohu’s sales mix over time, indicating whether growth is broad-based or concentrated in particular countries. Useful for spotting customer concentration, evaluating how international expansion or local fabs affect future sales, and judging sensitivity to regional economic cycles or policy changes.
Tracks regional trends and shifts in Cohu’s sales mix over time, indicating whether growth is broad-based or concentrated in particular countries. Useful for spotting customer concentration, evaluating how international expansion or local fabs affect future sales, and judging sensitivity to regional economic cycles or policy changes.
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The Fly
The FlyCohu (COHU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.96B
Dividend YieldN/A
Average Volume (3M)1.20M
Price to Earnings (P/E)―
Beta (1Y)1.76
Revenue Growth32.66%
EPS Growth55.60%
CountryUS
Employees2,777
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.83
Shares Outstanding47,338,432
10 Day Avg. Volume716,766
30 Day Avg. Volume1,203,461
Financial Highlights & Ratios
PEG Ratio-2.20
Price to Book (P/B)1.40
Price to Sales (P/S)2.42
P/FCF Ratio102.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$69.38Price Target Upside36.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.58
Revenue Forecast (FY)$558.76M
Cohu Business Overview & Revenue Model
Company Description
Cohu, Inc. stands as a prominent global provider of advanced semiconductor test equipment and comprehensive associated services. Operating through its various subsidiaries, the company extends its reach across key international markets including C...
How the Company Makes Money
Cohu makes money primarily by selling semiconductor test and inspection equipment and related consumables and services to semiconductor manufacturers and outsourced semiconductor assembly and test (OSAT) providers. Its key revenue streams generall...
Cohu Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call highlighted strong, broad‑based revenue growth, margin outperformance, an expanded and increasingly qualified HPC pipeline (~$850M annual opportunity), accelerating software revenue and a raised full‑year outlook. These positives are tempered by supply‑chain driven higher input costs (notably memory), capacity/lead‑time constraints as large HPC orders ramp, elevated operating expenses to capture HPC demand, and continued weakness in automotive. Management is investing to expand capacity (Malaysia/Philippines) and has proactively purchased components, but some margin pass‑through and conversion timing risks remain.Positive Updates
Revenue Growth
Q2 revenue of $149.0M, up 38% year‑over‑year and above the midpoint of guidance.
Negative Updates
Automotive Weakness
Automotive orders declined 24% YoY and is a lagging segment; utilization in automotive expected to remain below peers and not reach ~80% until late Q1 or Q2 next year by management's estimate.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 revenue of $149.0M, up 38% year‑over‑year and above the midpoint of guidance.
Read all positive updates
Company Guidance
The company guided Q3 revenue of about $170M (±$7M), up 14% sequentially and ~35% year‑over‑year, and reiterated full‑year 2026 revenue growth of roughly 35% (implying ~$610–$615M), with Q3 gross margin ~45% and full‑year gross margin in the mid‑40% range; Q3 operating expenses are expected around $54M (quarterly OpEx to remain in the low‑$50M range), and management said ~40% of projected sequential revenue growth should convert to operating profit. Additional metrics and context: Q2 revenue was $149M (+38% YoY) with recurring revenue ≈53% of total, non‑GAAP EPS $0.26, adjusted EBITDA 12%, cash and investments $498M, cash from operations $10M, total debt $304M (including $288M convertible), Q2 capex ~$2M and 2026 capex targeted at ~2% of revenue, Q3 net interest income after expense ≈$1.6M, Q3 tax provision ≈$5.2M, diluted shares ≈55M (incl. 5.8M from the convertible debt, 2.4M of which are offset by a capped call), test utilization improved to ~80% at quarter end (computing/industrial in low‑80s, automotive/mobile high‑70s), bookings mix led by computing (46% of system orders, +150% YoY) with industrial orders +87% YoY, consumer +29%, mobile flat and automotive −24% YoY, HPC revenue outlook raised to $100–$110M for FY26, an estimated $850M annual HPC pipeline (≈$190M qualified across 4 customers, ~$250M in active qualification across 5, ~$445M early‑stage across ~10), and planned Malaysia capacity increases to double output by year‑end with further step‑ups by mid‑2027 (50% over six months, >100% by mid‑2027, with potential to triple by end of next year).Cohu Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 522.60M | 452.96M | 401.78M | 636.32M | 812.77M | 887.21M |
| Gross Profit | 204.85M | 156.15M | 179.83M | 302.81M | 382.87M | 386.40M |
| EBITDA | 22.73M | -6.83M | -19.41M | 96.97M | 171.72M | 180.64M |
| Net Income | -38.82M | -74.27M | -69.82M | 28.16M | 96.85M | 167.32M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.24B | 999.41M | 1.15B | 1.23B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 498.17M | 483.98M | 262.09M | 335.70M | 385.58M | 379.90M |
| Total Debt | 326.94M | 327.77M | 18.69M | 58.94M | 103.16M | 144.88M |
| Total Liabilities | 483.81M | 457.44M | 142.52M | 200.18M | 298.57M | 376.54M |
| Stockholders Equity | 774.59M | 785.54M | 856.89M | 950.17M | 928.84M | 882.50M |
Cash Flow | ||||||
| Free Cash Flow | 34.92M | 10.73M | -7.86M | 85.42M | 98.09M | 85.73M |
| Operating Cash Flow | 46.58M | 31.69M | 2.78M | 101.47M | 112.86M | 97.73M |
| Investing Cash Flow | -245.50M | -257.02M | 21.92M | -30.21M | -67.87M | 39.89M |
| Financing Cash Flow | 243.73M | 246.33M | -59.03M | -68.14M | -91.07M | 6.53M |
Cohu Technical Analysis
Positive
50.70
Price Trends
56.67
Negative
50.59
Positive
38.75
Positive
Market Momentum
1.20
Negative
51.09
Neutral
68.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHU, the sentiment is Positive. The current price of 50.7 is below the 20-day moving average (MA) of 52.02, below the 50-day MA of 56.67, and above the 200-day MA of 38.75, indicating a neutral trend. The MACD of 1.20 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHU.
Cohu Risk Analysis
Cohu disclosed 41 risk factors in its most recent earnings report. Cohu reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cohu Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.75B | -633.09 | -4.66% | ― | -15.21% | -81.50% | |
63 Neutral | $2.96B | -75.35 | -4.91% | ― | 32.66% | 55.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $2.02B | 28.59 | 9.29% | 1.34% | 22.52% | 1433.51% | |
57 Neutral | $1.98B | 12.31 | 13.39% | ― | 0.52% | 41.86% | |
53 Neutral | $3.98B | -154.51 | -3.48% | ― | 2.53% | 84.78% | |
49 Neutral | $929.91M | -19.77 | -0.02% | ― | -2.48% | 56.59% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.