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Kulicke & Soffa
(NASDAQ:KLIC)
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Rating:63Neutral
Price Target:
$119.00
▲(45.33% Upside)
Action:Reiterated
Date:07/01/26
KLIC scores as above-average primarily due to a strong balance sheet and a clearly positive price trend (trading well above major moving averages), supported by upbeat near-term guidance and strengthening demand signals from the latest earnings call. The main constraints are weak current profitability and notably soft cash flow versus prior-cycle levels, plus a demanding valuation (very high P/E and low dividend yield) that raises the bar for continued execution.
Positive Factors
Very low leverage
Kulicke & Soffa's very low debt-to-equity (~0.04–0.05) provides durable financial flexibility across semiconductor cycles. Low leverage reduces refinancing risk, supports multi-quarter capex and R&D plans, and allows management to pursue growth or weather downturns without relying on external debt.
Negative Factors
Weak cash generation
Operating cash flow of $16M and FCF of $4M TTM constrain the company's internal funding capacity for scale, working capital and unforeseen cyclicality. Weak cash conversion reduces buffer for capex or strategic investments and raises reliance on operational execution to generate durable cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Kulicke & Soffa's very low debt-to-equity (~0.04–0.05) provides durable financial flexibility across semiconductor cycles. Low leverage reduces refinancing risk, supports multi-quarter capex and R&D plans, and allows management to pursue growth or weather downturns without relying on external debt.
Read all positive factors
Kulicke & Soffa Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals how profitable each business line is after operating costs, showing where K&S earns the best margins and which segments cover fixed costs. Improving segment-level operating income points to better pricing, efficiency, or product mix; persistent weakness flags areas that may require restructuring or rethink of capital allocation.
Reveals how profitable each business line is after operating costs, showing where K&S earns the best margins and which segments cover fixed costs. Improving segment-level operating income points to better pricing, efficiency, or product mix; persistent weakness flags areas that may require restructuring or rethink of capital allocation.
Data provided by:
The Fly
The FlyKulicke & Soffa (KLIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.83B
Dividend Yield1.77%
Average Volume (3M)1.21M
Price to Earnings (P/E)107.9
Beta (1Y)1.54
Revenue Growth11.16%
EPS Growth179.18%
CountryUS
Employees2,677
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.05
Shares Outstanding52,332,880
10 Day Avg. Volume1,440,432
30 Day Avg. Volume1,207,126
Financial Highlights & Ratios
PEG Ratio-100.53
Price to Book (P/B)2.60
Price to Sales (P/S)3.27
P/FCF Ratio22.17
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue7.55
Enterprise Value/Gross Profit15.71
Enterprise Value/Ebitda66.15
Forecast
1Y Price Target
$100.00Price Target Upside22.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.62
Revenue Forecast (FY)$930.38M
Kulicke & Soffa Business Overview & Revenue Model
Company Description
Kulicke and Soffa Industries, Inc. (KLIC) is a leading provider specializing in the development, manufacturing, and sale of essential equipment and tools utilized in the assembly of semiconductor components. The company's operations are divided in...
How the Company Makes Money
Kulicke & Soffa primarily makes money by selling capital equipment used in semiconductor assembly/packaging and related electronics manufacturing processes. Its revenue model is centered on: (1) Equipment sales (system revenue): The largest driver...
Kulicke & Soffa Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call communicated strong sequential revenue and shipment recoveries across multiple end markets (general semiconductor, memory, automotive/industrial), robust margins and improving visibility, supported by aggressive product and capacity investments (notably in Fluxless Thermo-Compression). Headwinds include a sequential decline in aftermarket refurbished sales, regional softness in Southeast Asia, near-term increases in operating expenses and the multi-year timeline/uncertainty for some emerging technologies (hybrid bonding, vertical wire). Overall the positives — pronounced revenue and shipment recoveries, healthy margins, clear TCB momentum and confident guidance — outweigh the outlined lowlights.Positive Updates
Strong Sequential Revenue Growth
Revenue increased 21.5% sequentially in the March quarter, with management reiterating improving demand and utilization across core markets.
Negative Updates
Aftermarket Products & Services (APS) Sequential Decline
APS end market demand decreased sequentially due to lower refurbished system sales during the March quarter, although consumables remained consistent.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Sequential Revenue Growth
Revenue increased 21.5% sequentially in the March quarter, with management reiterating improving demand and utilization across core markets.
Read all positive updates
Company Guidance
Management guided June-quarter revenue to rise 28% sequentially to $310 million with gross margins around 48%, non‑GAAP operating expenses of $85 million, GAAP EPS of $0.87 and non‑GAAP EPS of $1.00; they noted a near‑term effective tax rate slightly over 20% (Q2 tax expense $7.4M), and reminded that Q2 delivered a 49.3% gross margin with GAAP EPS $0.66 / non‑GAAP EPS $0.79 and OpEx of $81.1M GAAP / $73.8M non‑GAAP. Looking through FY‑26, TCB is expected to grow at least 70% sequentially to generate over $100M this fiscal year, Advanced Solutions capacity is being expanded to support roughly $400M of revenue, and the company plans $20M of capex for the expansion (with $12M in FY‑26) ahead of a H1 FY‑27 production ramp.Kulicke & Soffa Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
78
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 768.22M | 654.08M | 706.23M | 742.49M | 1.50B | 1.52B |
| Gross Profit | 369.11M | 277.92M | 268.75M | 358.65M | 748.32M | 696.99M |
| EBITDA | 87.67M | 38.58M | -33.53M | 101.20M | 498.49M | 434.58M |
| Net Income | 55.03M | 213.00K | -69.01M | 57.15M | 433.55M | 367.16M |
Balance Sheet | ||||||
| Total Assets | 1.19B | 1.10B | 1.24B | 1.50B | 1.59B | 1.60B |
| Cash, Cash Equivalents and Short-Term Investments | 487.86M | 510.71M | 577.15M | 759.40M | 775.54M | 739.79M |
| Total Debt | 39.79M | 38.55M | 40.96M | 48.41M | 41.69M | 42.99M |
| Total Liabilities | 328.44M | 282.85M | 296.15M | 325.22M | 393.95M | 506.39M |
| Stockholders Equity | 857.55M | 821.49M | 944.01M | 1.17B | 1.19B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 4.32M | 96.36M | 14.89M | 129.00M | 367.20M | 277.26M |
| Operating Cash Flow | 16.12M | 113.56M | 31.04M | 173.40M | 390.19M | 300.03M |
| Investing Cash Flow | 122.73M | 27.66M | -138.50M | -91.34M | 133.80M | -81.71M |
| Financing Cash Flow | -89.28M | -153.07M | -196.10M | -111.88M | -321.19M | -44.26M |
Kulicke & Soffa Technical Analysis
Positive
81.88
Price Trends
107.86
Positive
89.43
Positive
68.29
Positive
Market Momentum
1.75
Positive
48.91
Neutral
24.07
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 81.88 is below the 20-day moving average (MA) of 119.94, below the 50-day MA of 107.86, and above the 200-day MA of 68.29, indicating a neutral trend. The MACD of 1.75 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KLIC.
Kulicke & Soffa Risk Analysis
Kulicke & Soffa disclosed 33 risk factors in its most recent earnings report. Kulicke & Soffa reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kulicke & Soffa Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.39B | 44.38 | 9.79% | ― | -11.75% | -41.15% | |
71 Outperform | $9.31B | 132.94 | 6.68% | ― | 9.60% | 25.63% | |
70 Outperform | $17.89B | 40.21 | 9.96% | 0.81% | 12.71% | 37.49% | |
70 Outperform | $1.72B | 10.94 | 13.39% | ― | 0.52% | 41.86% | |
69 Neutral | $2.60B | -47.53 | -6.91% | ― | 23.10% | 35.49% | |
63 Neutral | $5.83B | 107.94 | 6.59% | 1.77% | 11.16% | 179.18% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Kulicke & Soffa
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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.