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Cohu (COHU)
NASDAQ:COHU
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Cohu
(NASDAQ:COHU)
58Neutral
Positive Factors
Cost Management
The ongoing restructuring plan to optimize manufacturing and labor costs should pay dividends in CY26 with target OpEx levels of ~$49M/Q at a revenue run rate of ~$130M.
Earnings Guidance
Cohu reported a beat-and-raise quarter and is now expected to break even in 2Q25.
Market Growth
Growth is driven by the initial contribution of HBM inspection revenue and an uptick in handler kits revenue for mobile processors.
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.
Tariff Uncertainty
Uncertainty of how tariffs may impact demand puts risk on the trajectory of C2H25 which Cohu has limited visibility given the generally short lead times of its consumable products.
Workforce Restructuring
COHU announced it has launched a strategic restructuring program to consolidate certain U.S. and Europe operations to Asia and to cut 7% of the workforce in an effort to improve its cost structure.
Cohu (COHU) vs. S&P 500 (SPY)
Market Cap
$776.75M
Dividend YieldN/A
Average Volume (3M)627.39K
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth-36.86%
EPS Growth-351.11%
CountryUS
Employees2,986
SectorTechnology
Sector Strength68
IndustrySemiconductors
Share Statistics
EPS (TTM)-1.49
Shares Outstanding46,540,035
10 Day Avg. Volume603,576
30 Day Avg. Volume627,393
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.32
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.68
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.75Price Target Upside48.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Cohu Business Overview & Revenue Model
Company DescriptionCohu, Inc. is a leading provider of equipment and services for the semiconductor industry. The company operates primarily in the semiconductor test and inspection sector, offering a broad range of solutions including test handling, burn-in, thermal subsystems, and MEMS test modules. Cohu serves a diverse customer base comprising semiconductor manufacturers and test subcontractors, assisting them in enhancing yield, productivity, and efficiency in their testing processes.
How the Company Makes MoneyCohu makes money by offering a comprehensive suite of testing and inspection solutions tailored to the semiconductor industry. The company's revenue model is primarily based on the sale of its equipment, which includes test handlers, burn-in systems, and thermal solutions. In addition to direct equipment sales, Cohu generates recurring revenue through the provision of spare parts, services, and support contracts. The company's financial performance is influenced by its ability to innovate and maintain technological leadership in its product offerings, as well as by its strategic partnerships with semiconductor manufacturers and test subcontractors. Global demand for semiconductors, industry trends, and technological advancements are significant factors that contribute to Cohu's earnings.
Cohu Financial Statement Overview
Summary
Cohu faces substantial financial challenges with a significant decline in revenue and negative profitability. The balance sheet remains relatively stable with low leverage, but cash flow issues indicate liquidity concerns. Addressing revenue stability and cost structure is crucial for improving financial health.Income Statement
Cohu's income statement reveals a concerning trend with declining revenue from $812.78M in 2022 to $401.78M in 2024, indicating a significant 51% decrease. The company also faced negative profitability metrics in 2024, with a gross profit margin of 0%, net profit margin of -17.38%, and negative EBIT and EBITDA margins. This reflects substantial operational challenges and a potential inability to cover costs, raising concerns about revenue stability and profitability.40
Negative
Balance Sheet
The balance sheet shows relative financial stability with a strong equity position. The debt-to-equity ratio improved to 0.02 in 2024, indicating low leverage. However, the equity ratio decreased slightly to 88.52% from previous years. Although the company maintains a solid cash position, the declining asset base and equity suggest potential risks if revenue does not recover.65
Positive
Cash Flow
Cash flow analysis highlights a troubling decline in free cash flow, turning from $85.42M in 2023 to -$7.86M in 2024. Operating cash flow dropped significantly, impacting the company's ability to generate cash internally. Despite a positive operating cash flow to net income ratio, the negative free cash flow indicates liquidity issues and challenges in sustaining operations without external funding.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 401.78M | 636.32M | 812.77M | 887.21M | 636.01M | Gross Profit |
| 180.29M | 302.81M | 383.33M | 386.96M | 271.78M | EBIT |
| -71.67M | 43.27M | 125.56M | 132.87M | 17.86M | EBITDA |
| -11.84M | 98.94M | 178.97M | 180.64M | 74.11M | Net Income Common Stockholders |
| -69.82M | 28.16M | 96.85M | 167.32M | -13.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 262.09M | 335.70M | 385.58M | 379.90M | 170.03M | Total Assets |
| 999.41M | 1.15B | 1.23B | 1.26B | 1.10B | Total Debt |
| 18.69M | 58.94M | 98.18M | 139.83M | 345.73M | Net Debt |
| -187.71M | -186.59M | -144.16M | -150.37M | 196.37M | Total Liabilities |
| 142.52M | 200.18M | 298.57M | 376.54M | 583.89M | Stockholders Equity |
| 856.89M | 950.17M | 928.84M | 882.50M | 511.62M |
| Cash Flow | Free Cash Flow | |||
| -7.86M | 85.42M | 98.09M | 85.73M | 31.07M | Operating Cash Flow |
| 2.78M | 101.47M | 112.86M | 97.73M | 49.73M | Investing Cash Flow |
| 21.92M | -30.21M | -67.87M | 39.89M | -18.36M | Financing Cash Flow |
| -59.03M | -68.14M | -91.07M | 6.53M | -38.07M |
Cohu Technical Analysis
Neutral
16.69
Price Trends
16.38
Positive
20.49
Negative
23.42
Negative
Market Momentum
0.08
Negative
56.89
Neutral
72.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHU, the sentiment is Neutral. The current price of 16.69 is above the 20-day moving average (MA) of 15.08, above the 50-day MA of 16.38, and below the 200-day MA of 23.42, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 72.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COHU.
Cohu Risk Analysis
Cohu disclosed 44 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $628.54M | 14.62 | 5.63% | 4.77% | 3.24% | -26.85% | |
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
59 Neutral | $910.66M | 32.65 | 3.30% | ― | 20.20% | ― | |
58 Neutral | $776.75M | ― | -9.87% | ― | -36.86% | -351.11% | |
50 Neutral | $716.03M | ― | -3.30% | ― | 4.68% | 55.72% | |
47 Neutral | $615.07M | ― | -2.57% | ― | 4.12% | -29.74% | |
41 Neutral | $830.49M | ― | -84.12% | ― | 14.57% | -139.27% |
* Technology Sector Average
Performance Comparison
COHU
Cohu
16.69
-12.23
-42.29%
AOSL
Alpha and Omega
20.91
-1.25
-5.64%
IMOS
ChipMOS Technologies
17.78
-9.52
-34.87%
UCTT
Ultra Clean Holdings
20.17
-22.79
-53.05%
AAOI
Applied Optoelectronics
14.96
3.01
25.19%
ICHR
Ichor Holdings
20.99
-18.31
-46.59%
Cohu Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 3.86%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The call indicated positive momentum with increased recurring orders and a favorable Q2 outlook, bolstered by several customer design wins and successful integration of a recent acquisition. However, it also highlighted a Q1 net loss and decreased cash reserves.Q1-2025 Updates
Positive Updates
Increased Recurring Orders
Recurring orders increased by 28% quarter-over-quarter, demonstrating the value of Cohu’s non-capital equipment revenue streams and indicating potential utilization improvements in coming quarters.
Positive Q2 Revenue Outlook
Guidance for Q2 revenue is approximately $106 million, marking a 10% increase quarter-over-quarter, driven by increases in recurring revenue orders and HBM inspection systems.
Customer Design Wins in Q1
Three new opportunities for handlers with a leading package and test subcontractor in China, and a win with Diamondx tester at a European fabless supplier, among others, with in-hand POs totaling $6.5 million and a potential total revenue of $18 million a year.
Successful Integration of Tignis Acquisition
First quarter combining Tignis and Cohu’s DI-Core solutions, with three new demonstration opportunities signed, indicating positive integration and potential for future growth.
Negative Updates
Q1 Non-GAAP Net Loss
Non-GAAP net loss of approximately $800,000 in Q1, with a non-GAAP EPS loss of $0.02.
Decreased Cash and Investments
Cash and investments decreased by $61 million during Q1 to $201 million, primarily due to the acquisition of Tignis, share repurchases, and operational use.
Decline in Test Cell Utilization
Estimated test cell utilization at the end of March was down 1 point quarter-over-quarter to 72%.
Company Guidance
During the first quarter of 2025, Cohu reported revenue of approximately $97 million, aligning with guidance, and a non-GAAP gross margin of about 44%. The company implemented a restructuring program aimed at reducing manufacturing and operating expenses, which is expected to benefit future quarters. Test cell utilization decreased slightly to 72% by the end of March. Notably, recurring orders surged by 28% quarter-over-quarter, signaling potential upticks in future utilization. The company secured new opportunities in the automotive sector in China and won selection for its Diamondx tester in Europe. A multi-unit order for HBM inspection systems was also received, highlighting expansion into the memory market. Luis Muller, Cohu's CEO, expressed optimism about business prospects and noted no significant changes in customer buying patterns due to tariffs. Second quarter 2025 revenue is projected to increase by 10% quarter-over-quarter to about $106 million, with a gross margin forecasted at 45%. Operating expenses are expected to decrease slightly as restructuring benefits take effect, aiming for $47 million per quarter when revenue is around $100 million.Cohu Corporate Events
Business Operations and Strategy
Cohu Announces Strategic Restructuring Amid Industry Downturn
Negative
Feb 24, 2025
On February 19, 2025, Cohu, Inc. initiated a strategic restructuring program aimed at repositioning its operations and improving its cost structure amid a downturn in the semiconductor test and inspection equipment industry. The restructuring involves consolidating operations in Switzerland and Germany to lower-cost locations, reducing headcount in the U.S. and Asia, and negotiating with trade unions. The company expects to incur pretax charges of $6.1 million to $7.2 million throughout fiscal 2025, impacting its Semiconductor Test & Inspection segment.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.