Kulicke & Soffa (KLIC) AI Stock Analysis

• Market Cap: $3.00B
• Dividend Yield: 1.77%
• Average Volume (3M): 558.97K
• Price to Earnings (P/E): 14332.5
• Beta (1Y): 1.47
• Revenue Growth: -7.38%
• EPS Growth: 99.38%
• Country: US
• Employees: 2,677
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.28
• Shares Outstanding: 52,332,615
• 10 Day Avg. Volume: 483,031
• 30 Day Avg. Volume: 558,966
• PEG Ratio: -99.97
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 3.27
• P/FCF Ratio: 22.17
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 4.32
• Enterprise Value/Gross Profit: 10.28
• Enterprise Value/Ebitda: 73.21
• 1Y Price Target: $52.67
• Price Target Upside: -8.13% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $61.00 ▲(6.40% Upside)

The score is mainly held back by weak financial performance (steep revenue decline and pressured profitability) and very unattractive valuation (extreme P/E). These are partially offset by a strong technical uptrend and a generally upbeat earnings call featuring improving end-market momentum, supportive guidance, and continued share repurchases.

Positive Factors

Conservative balance sheet

Low leverage and a strong equity ratio provide durable financial flexibility. This conservative capital structure supports cyclical resilience, funds capital investments and R&D without excessive refinancing risk, and preserves capacity to support customers through demand swings over months.

Recurring service revenue

Aftermarket consumables and service contracts create repeatable, higher-margin revenue that smooths cyclicality inherent in capital equipment sales. This recurring mix improves cash flow visibility, funds product development, and strengthens customer ties over multi-quarter horizons.

Advanced packaging product momentum

New dispense and HBM systems target secular growth in advanced packaging. Product launches aligned with industry transitions can capture share and drive durable demand as customers adopt higher-density packaging, supporting sustainable revenue recovery and structural market participation.

Negative Factors

Steep revenue decline

A large multi-year revenue drop reduces scale economies and weakens fixed-cost absorption, pressuring profitability and ROI. Restoring prior volume levels may take multiple quarters, constraining reinvestment capacity and limiting ability to execute strategic initiatives during the recovery.

Margin compression and negative EBIT

Declining gross margins and negative operating profit signal structural margin pressure from pricing, mix, or cost issues. Persistently low margins hinder free cash flow generation, limit R&D and capex funding, and raise the risk that competitiveness erodes if cost or product weaknesses aren't corrected.

CEO transition uncertainty

An executive leadership change introduces execution risk on strategy, customer relationships, and capital allocation. While interim leadership can preserve continuity, a prolonged search or strategic shifts could delay decisions and disrupt momentum in product launches and market-share pursuits over several quarters.

Kulicke & Soffa Business Overview & Revenue Model

Company Description

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through two segments, Capital Equipment, and Aftermarket Products and Services (APS). The company manufactures and sells advanced displays; die-transfer, flip-chip, and TCB advanced packaging products; ball bonder, die-attach, electronics assembly, lithography, wafer-level bonder, and wedge bonder products; consumables, such as capillaries, dicing blades, and wedge bonds; and auto offline programming, KNet PLUS, and new product introduction/manufacturing execution system software products. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.

How the Company Makes Money

Kulicke & Soffa generates revenue through the sale of semiconductor assembly equipment, which comprises a significant portion of its income. The company also earns money from consumables, spare parts, and maintenance services related to its equipment, creating a recurring revenue stream. Additionally, KLIC benefits from long-term contracts and partnerships with major semiconductor manufacturers and foundries, which provide stability and predictability in its earnings. The company's investment in research and development allows it to stay at the forefront of technology, leading to new product offerings that can command premium pricing and expand its market share.

Kulicke & Soffa Financial Statement Overview

Summary

Overall fundamentals are pressured by a sharp revenue decline (-57.2%), contracting gross margin (48.3% to 42.5%), and near-zero net margin with negative EBIT margins. Offsetting this, the balance sheet is relatively strong with low leverage, and cash generation is mixed but still supported by a positive free cash flow to net income relationship.

Income Statement

Kulicke & Soffa's income statement shows significant challenges. The company has experienced a substantial decline in revenue over the past few years, with a negative revenue growth rate of -57.2% in the latest period. Gross profit margins have decreased from 48.3% in 2023 to 42.5% in 2025, indicating pressure on profitability. The net profit margin is extremely low at 0.03%, and EBIT margins have turned negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet remains relatively stable with a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity has dropped significantly, reflecting reduced profitability. The equity ratio remains strong, suggesting a solid financial foundation despite recent performance challenges.

Cash Flow

Cash flow analysis reveals a mixed picture. Free cash flow has declined, with a negative growth rate of -6.19% in the latest period. However, the company maintains a positive free cash flow to net income ratio, indicating some level of cash generation efficiency. Operating cash flow has improved, but overall cash flow performance is inconsistent.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	654.08M	706.23M	742.49M	1.50B	1.52B
Gross Profit	306.37M	320.90M	352.56M	743.40M	691.01M
EBITDA	38.58M	-33.53M	101.20M	498.49M	434.58M
Net Income	213.00K	-69.01M	57.15M	433.55M	367.16M
Balance Sheet
Total Assets	1.10B	1.24B	1.50B	1.59B	1.60B
Cash, Cash Equivalents and Short-Term Investments	510.71M	577.15M	759.40M	775.54M	739.79M
Total Debt	38.55M	40.96M	48.41M	41.69M	42.99M
Total Liabilities	282.85M	296.15M	325.22M	393.95M	506.39M
Stockholders Equity	821.49M	944.01M	1.17B	1.19B	1.10B
Cash Flow
Free Cash Flow	96.36M	14.89M	129.00M	367.20M	277.26M
Operating Cash Flow	113.56M	31.04M	173.40M	390.19M	300.03M
Investing Cash Flow	27.66M	-138.50M	-91.34M	133.80M	-81.71M
Financing Cash Flow	-153.07M	-196.10M	-111.88M	-321.19M	-44.26M

Kulicke & Soffa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.33
• 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 KLIC, the sentiment is Positive. The current price of 57.33 is above the 20-day moving average (MA) of 56.25, above the 50-day MA of 49.59, and above the 200-day MA of 39.28, indicating a bullish trend. The MACD of 2.70 indicates Positive momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 50.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KLIC.

Kulicke & Soffa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	74 Outperform	$2.04B	15.10	11.89%	―	-2.04%	8.84%
ACLS	71 Outperform	$2.70B	20.82	13.62%	―	-20.69%	-37.67%
AMKR	69 Neutral	$11.95B	38.95	7.27%	0.81%	0.13%	-16.17%
FORM	68 Neutral	$5.46B	134.22	4.16%	―	2.29%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KLIC	56 Neutral	$3.00B	14,332.50	0.02%	1.77%	-7.38%	99.38%
COHU	53 Neutral	$1.33B	-18.21	-8.53%	―	-4.50%	-45.79%

Kulicke & Soffa Corporate Events

Kulicke & Soffa CEO Retirement Announcement

On October 28, 2025, Kulicke and Soffa Industries, Inc. announced the retirement of Dr. Fusen Chen from his role as President and CEO, effective December 1, 2025, due to health reasons. Lester Wong, the current Executive Vice President, Finance and IT, and Chief Financial Officer, has been appointed as Interim CEO while the Board searches for a permanent successor. Dr. Chen will remain as an advisor to the Board for a year to ensure a smooth transition. The company reaffirmed its fourth quarter fiscal 2025 outlook, highlighting its strategic focus on growth and innovation in sectors like AI, electric vehicles, and power semiconductors.

The most recent analyst rating on (KLIC) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on Kulicke & Soffa stock, see the KLIC Stock Forecast page.