Cohu (COHU) AI Stock Analysis

• Market Cap: $951.45M
• Dividend Yield: N/A
• Average Volume (3M): 377.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -30.75%
• EPS Growth: -3668.44%
• Country: US
• Employees: 2,986
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 46,502,690
• 10 Day Avg. Volume: 253,355
• 30 Day Avg. Volume: 377,698
• PEG Ratio: -0.37
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.74
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 9.10
• Enterprise Value/Ebitda: -367.63
• 1Y Price Target: $23.70
• Price Target Upside: 15.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $22.00 ▲(6.80%Upside)

Cohu's overall stock score reflects a mix of challenges and opportunities. The most significant factor is the company's financial performance, which is under pressure due to declining revenue and profitability. However, strong technical indicators and a positive earnings call outlook provide some optimism. The valuation remains a concern due to negative earnings. Investors should weigh these factors carefully, considering both the potential for recovery and the current financial challenges.

Positive Factors

Financial Performance

Cohu reported a beat-and-raise quarter and is now expected to break even in 2Q25.

Revenue Growth

The 2Q25 guidance marks the first reversal of the trend, with both systems revenue and recurring revenue growing sequentially.

Negative Factors

Inventory Challenges

Cohu reported both 4Q24 results and 1Q25 guidance below the Street's estimates, both of which can be attributed to the weak end-market demand environment, as customers continue to digest excess inventory.

Market Uncertainty

It is hard to know if this is just a one-quarter phenomenon, especially with the newly emerged uncertainty due to tariffs.

Cohu Business Overview & Revenue Model

Company Description

Cohu, Inc. is a leading global supplier of equipment and services optimized for the semiconductor industry. The company designs, develops, manufactures, and sells semiconductor test and inspection handlers, micro-electromechanical systems (MEMS) test modules, burn-in related equipment, and thermal subsystems. Cohu serves a wide array of sectors, including automotive, consumer, industrial, and computing, providing solutions that ensure the quality and reliability of semiconductor devices.

How the Company Makes Money

Cohu generates revenue primarily through the sale of its semiconductor test and inspection equipment. This includes automated test equipment (ATE) handlers and inspection systems that are critical in ensuring the quality and reliability of semiconductor devices. In addition to equipment sales, Cohu offers a range of services, such as spare parts, maintenance, and support, which contribute to its revenue stream. The company also benefits from long-term relationships and partnerships with leading semiconductor manufacturers and integrated device manufacturers (IDMs), which drive repeat business and ongoing demand for its products and services. Cohu's financial performance is influenced by trends in the semiconductor industry, technological advancements, and global economic conditions impacting the demand for electronic devices.

Cohu Financial Statement Overview

Summary

Cohu's financial performance is challenged by declining revenue and negative profitability. While the balance sheet shows strong equity and liquidity, the negative cash flows and profitability issues indicate operational struggles.

Income Statement

Cohu's income statement reveals significant challenges with declining revenue and negative profitability. The TTM revenue of $390.96M decreased from $401.78M in the prior year. The net profit margin turned negative, with net losses reported in recent periods. This indicates a downturn in operational efficiency and profitability. Additionally, EBIT and EBITDA margins are negative, highlighting operational struggles.

Balance Sheet

Cohu's balance sheet shows a strong equity position with a high equity ratio of approximately 88.9% TTM. The debt-to-equity ratio is low at 0.03 TTM, indicating conservative leverage. However, the declining net income impacts the return on equity, which is negative. The company maintains a substantial cash position, indicating robust liquidity.

Cash Flow

Cash flow analysis indicates moderate performance. While operating cash flow has improved in the TTM, free cash flow remains negative due to capital expenditures. The operating cash flow to net income ratio is high, suggesting better cash generation relative to earnings. However, the negative free cash flow growth rate presents a concern for long-term cash sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	390.96M	401.78M	636.32M	812.77M	887.21M	636.01M
Gross Profit	153.79M	180.29M	302.81M	383.33M	386.96M	271.78M
EBITDA	-35.64M	-11.84M	98.94M	178.97M	180.64M	74.11M
Net Income	-85.99M	-69.82M	28.16M	96.85M	167.32M	-13.84M
Balance Sheet
Total Assets	975.54M	999.41M	1.15B	1.23B	1.26B	1.10B
Cash, Cash Equivalents and Short-Term Investments	200.81M	262.09M	335.70M	385.58M	379.90M	170.03M
Total Debt	26.89M	18.69M	58.94M	98.18M	139.83M	345.73M
Total Liabilities	147.82M	142.52M	200.18M	298.57M	376.54M	583.89M
Stockholders Equity	827.72M	856.89M	950.17M	928.84M	882.50M	511.62M
Cash Flow
Free Cash Flow	-11.71M	-7.86M	85.42M	98.09M	85.73M	31.07M
Operating Cash Flow	6.56M	2.78M	101.47M	112.86M	97.73M	49.73M
Investing Cash Flow	-18.90M	21.92M	-30.21M	-67.87M	39.89M	-18.36M
Financing Cash Flow	-16.76M	-59.03M	-68.14M	-91.07M	6.53M	-38.07M

Cohu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 20.6 is above the 20-day moving average (MA) of 19.27, above the 50-day MA of 18.07, and below the 200-day MA of 21.45, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 67.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHU.

Cohu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMOS	72 Outperform	$668.55M	18.67	4.72%	4.41%	-0.41%	-46.38%
UCTT	68 Neutral	$1.11B	40.50	3.30%	―	20.20%	―
AOSL	66 Neutral	$821.67M	―	-2.55%	―	3.57%	-134.36%
Sector *	63 Neutral	$34.16B	5.78	-11.85%	1.82%	5.31%	-18.32%
COHU	63 Neutral	$951.45M	―	-9.87%	―	-30.75%	-3668.44%
ICHR	57 Neutral	$800.79M	―	-2.35%	―	13.41%	72.56%
AAOI	54 Neutral	$1.57B	―	-68.45%	―	50.30%	-111.11%

Cohu Corporate Events

Cohu to Present at B. Riley Securities Conference

On May 21, 2025, Cohu, Inc. management will participate in the B. Riley Securities 25th Annual Institutional Investor Conference in Marina Del Rey, California. The company will present information that includes forward-looking statements, which are not considered filed under the Securities Exchange Act of 1934.

The most recent analyst rating on (COHU) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Cohu stock, see the COHU Stock Forecast page.

Cohu Stockholders Approve Key Proposals at Annual Meeting

Cohu held its 2025 Annual Meeting of Stockholders on May 16, 2025, where stockholders voted on three key proposals. The election of Class 3 directors resulted in the re-election of Steven J. Bilodeau, James A. Donahue, and Andreas W. Mattes. Additionally, the advisory vote on executive compensation was approved, and Ernst & Young LLP’s appointment as the independent registered public accounting firm for fiscal year 2025 was ratified.

The most recent analyst rating on (COHU) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Cohu stock, see the COHU Stock Forecast page.