Cohu (COHU) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: N/A
• Average Volume (3M): 993.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -4.50%
• EPS Growth: -45.79%
• Country: US
• Employees: 2,986
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.06
• Shares Outstanding: 46,692,616
• 10 Day Avg. Volume: 986,341
• 30 Day Avg. Volume: 993,684
• PEG Ratio: 0.05
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -160.20
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -154.77
• 1Y Price Target: $28.67
• Price Target Upside: 23.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $24.50 ▲(5.74% Upside)

Cohu's overall stock score is primarily influenced by its financial challenges, including declining revenues and profitability. Positive technical indicators provide some support, suggesting potential for price appreciation. However, valuation concerns due to a negative P/E ratio and the absence of a dividend yield weigh on the score. The earnings call provided mixed signals, with growth in recurring revenue but also challenges like a seasonal slowdown.

Positive Factors

Recurring Revenue Growth

The consistent growth in recurring revenue strengthens Cohu's revenue base, providing stability and predictability, which is crucial for long-term financial health.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, allowing Cohu to invest in growth opportunities and weather economic downturns.

Innovation and Product Portfolio

Cohu's focus on innovation and expanding its product portfolio positions it well to meet evolving customer needs and capture market share in the semiconductor industry.

Negative Factors

Declining Revenue

A sharp decline in revenue indicates challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Negative Profitability

Sustained negative profitability can erode financial resources and limit the ability to invest in future growth, posing a risk to long-term viability.

Cash Flow Challenges

Challenges in converting earnings to cash may restrict Cohu's ability to fund operations and strategic initiatives, impacting its long-term financial flexibility.

Cohu Business Overview & Revenue Model

Company Description

Cohu, Inc. is a leading provider of test and inspection equipment for the semiconductor and electronics industries. The company operates primarily in two segments: Semiconductor Test and Inspection, and Electronics Test and Inspection. Cohu's core products include automated test equipment (ATE) for semiconductor devices, inspection equipment for advanced packaging, and other related services that enhance the reliability and performance of electronic components.

How the Company Makes Money

Cohu generates revenue primarily through the sale of its test and inspection equipment to semiconductor manufacturers and electronic device producers. The company operates on a business model that includes direct sales of equipment, as well as recurring revenues from service agreements, spare parts, and upgrades for their equipment. Key revenue streams include the Semiconductor Test segment, which contributes a significant portion of the overall revenue, and the Electronics Test segment. Cohu also benefits from partnerships with leading semiconductor manufacturers and technology firms, which enhance its market presence and provide opportunities for collaborative innovations. Additionally, the growing demand for advanced semiconductor testing solutions due to the increasing complexity of electronic devices supports Cohu's growth and revenue generation efforts.

Cohu Financial Statement Overview

Summary

Cohu is facing financial challenges with declining revenues and profitability, as reflected in a negative net profit margin and a significant revenue drop. However, the balance sheet shows low leverage and a strong capital structure, while operating cash flow remains positive despite mixed cash flow performance.

Income Statement

Cohu's income statement shows a challenging period with declining revenues and profitability. The TTM data indicates a significant revenue drop of 76.2% compared to the previous year, and the company is currently operating at a net loss with a negative net profit margin of -22.1%. The gross profit margin has also decreased over time, indicating pressure on cost management. Despite these challenges, the company had a positive revenue growth rate in 2021, suggesting potential for recovery.

Balance Sheet

Cohu's balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.06 in the TTM period, indicating low leverage. However, the return on equity has turned negative, reflecting recent losses. The equity ratio remains strong, suggesting a solid capital structure. The company has managed to reduce its debt levels over the years, which is a positive sign for financial stability.

Cash Flow

Cohu's cash flow statement reveals mixed performance. The TTM period shows a decline in free cash flow growth, and the free cash flow to net income ratio is low at 0.12, indicating challenges in converting earnings to cash. However, the operating cash flow remains positive, suggesting some ability to generate cash from operations despite recent losses. Historical data shows periods of strong free cash flow growth, indicating potential for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	330.73M	401.78M	636.32M	812.77M	583.33M	451.77M
Gross Profit	0.00	179.83M	302.81M	382.87M	229.83M	159.31M
EBITDA	-4.85M	-19.41M	96.97M	171.72M	7.35M	-888.00K
Net Income	-51.78M	-69.82M	28.16M	96.85M	-69.00M	-32.18M
Balance Sheet
Total Assets	1.02B	999.41M	1.15B	1.23B	1.08B	1.13B
Cash, Cash Equivalents and Short-Term Investments	198.16M	262.09M	335.70M	385.58M	156.10M	165.02M
Total Debt	49.90M	18.69M	58.94M	98.18M	381.91M	352.83M
Total Liabilities	155.85M	142.52M	200.18M	298.57M	594.64M	588.06M
Stockholders Equity	865.42M	856.89M	950.17M	928.84M	483.07M	546.24M
Cash Flow
Free Cash Flow	-25.73M	-7.86M	85.42M	98.09M	-731.00K	29.47M
Operating Cash Flow	-8.14M	2.78M	101.47M	112.86M	17.27M	34.44M
Investing Cash Flow	-47.44M	21.92M	-30.21M	-67.87M	-16.55M	-322.31M
Financing Cash Flow	-1.53M	-59.03M	-68.14M	-91.07M	-8.18M	322.11M

Cohu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 23.17 is below the 20-day moving average (MA) of 23.18, above the 50-day MA of 21.77, and above the 200-day MA of 19.26, indicating a neutral trend. The MACD of 0.65 indicates Positive momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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
PLAB	73 Outperform	$1.33B	12.45	9.89%	―	-1.79%	-22.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IMOS	60 Neutral	$817.62M	168.39	0.66%	3.72%	0.15%	-92.08%
UCTT	60 Neutral	$1.23B	―	-20.61%	―	6.65%	-4652.36%
COHU	59 Neutral	$1.06B	-14.47	-8.53%	―	-4.50%	-45.79%
AEHR	55 Neutral	$737.86M	―	-5.43%	―	-3.23%	-122.16%
AOSL	48 Neutral	$610.85M	―	-11.17%	―	5.81%	-376.55%

Cohu Corporate Events

Cohu, Inc. Reports Q3 2025 Financial Results

Cohu, Inc. is a global technology leader providing test, automation, inspection, and metrology products and services to the semiconductor industry, known for its broad product portfolio that enhances manufacturing yield and productivity. In its third quarter of 2025, Cohu reported net sales of $126.2 million, with a gross margin of 43.8%, and a GAAP net loss of $4.1 million, or $0.09 per share. The company is making strides in the AI data center markets with its Neon HBM inspection and Eclipse test handler. Key financial highlights include a 55% recurring revenue in net sales and a non-GAAP gross margin of 44.1%. Despite reporting a GAAP loss, Cohu’s non-GAAP results show a smaller loss of $2.8 million or $0.06 per share. The company holds $198.2 million in cash and investments, and it did not repurchase any shares during the quarter. Looking ahead, Cohu’s management remains optimistic about its long-term prospects, focusing on strategic initiatives and technology investments to drive innovation and deliver value to its customers. The company projects fourth-quarter sales to range between $115 million and $129 million.

Cohu Issues $287.5M Convertible Notes for Strategic Growth

On September 29, 2025, Cohu, Inc. issued $287.5 million in 1.50% Convertible Senior Notes due 2031, with the proceeds intended for general corporate purposes and to fund capped call transactions to mitigate share dilution. These notes, which mature on January 15, 2031, are part of a strategic capital raise to enhance Cohu’s financial flexibility and market positioning, potentially impacting the company’s stock price and investor relations.

The most recent analyst rating on (COHU) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Cohu stock, see the COHU Stock Forecast page.

Cohu Announces $200M Convertible Notes Offering

On September 23, 2025, Cohu, Inc. announced its intention to offer $200 million in convertible senior notes due 2031 in a private offering to qualified institutional buyers. The company plans to use the proceeds to enhance strategic flexibility and enter into capped call transactions to mitigate potential share dilution. These transactions are expected to stabilize Cohu’s stock market price and offer financial benefits upon conversion of the notes, potentially impacting the market dynamics of Cohu’s common stock and the notes themselves.

The most recent analyst rating on (COHU) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Cohu stock, see the COHU Stock Forecast page.

Cohu Inc. Earnings Call Highlights Growth and Challenges

Cohu Inc. recently held its earnings call, showcasing a robust performance characterized by new orders, increased utilization, and innovative product launches. However, the call also addressed concerns about a potential seasonal slowdown and adjustments in tax provisions, painting a mixed yet optimistic picture for the company’s future.

Cohu, Inc. Reports Q2 2025 Financial Results

Cohu, Inc. is a global technology leader providing test, automation, inspection, and metrology products and services to the semiconductor industry, known for its broad product portfolio that enhances manufacturing yield and productivity. In its second quarter of 2025, Cohu reported net sales of $107.7 million, with a significant portion being recurring revenue, and a gross margin of 43.7%. Despite a GAAP net loss of $16.9 million, the company achieved a non-GAAP net income of $0.7 million, indicating a positive operational performance excluding certain expenses.