Kulicke & Soffa (KLIC) AI Stock Analysis

• Market Cap: $2.59B
• Dividend Yield: 1.72%
• Average Volume (3M): 612.81K
• Price to Earnings (P/E): 12382.5
• Beta (1Y): 1.49
• 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: 52,363,000
• 10 Day Avg. Volume: 699,042
• 30 Day Avg. Volume: 612,811
• PEG Ratio: -99.97
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 3.27
• P/FCF Ratio: 18.81
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: 42.61
• 1Y Price Target: $43.00
• Price Target Upside: -12.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.35
• Revenue Forecast (FY): $737.83M

• Rating: 61 Neutral
• Price Target: $48.00 ▼(-2.26% Downside)

Kulicke & Soffa's overall stock score reflects a mix of positive technical momentum and strong earnings call guidance, offset by significant financial performance challenges and high valuation concerns. The company's strategic initiatives and market growth potential are promising, but operational and valuation risks remain.

Positive Factors

Strong Market Position

Kulicke & Soffa's established presence across multiple industries such as consumer electronics and telecommunications provides a robust market position, supporting long-term revenue stability and growth opportunities.

Recurring Revenue Streams

The recurring revenue from consumables and maintenance services enhances financial stability, providing a predictable income stream that supports long-term business sustainability.

Innovation and R&D Investment

Continuous investment in R&D ensures Kulicke & Soffa remains competitive by developing advanced products, which can lead to market share expansion and premium pricing power.

Negative Factors

Declining Revenue and Profitability

The substantial decline in revenue and profitability pressures Kulicke & Soffa's financial health, potentially limiting its ability to invest in growth and innovation.

CEO Transition Uncertainty

The transition to a new CEO introduces uncertainty, which can affect strategic direction and operational stability, impacting long-term business performance.

Challenges in Automotive and Industrial Markets

Ongoing challenges in automotive and industrial markets may hinder revenue growth and market expansion, affecting Kulicke & Soffa's ability to capitalize on these sectors.

Kulicke & Soffa Business Overview & Revenue Model

Company Description

Kulicke & Soffa Industries, Inc. (KLIC) is a leading provider of semiconductor and electronic assembly solutions, primarily operating in the capital equipment sector. The company specializes in designing and manufacturing advanced equipment used in the production of semiconductor devices, including wire bonding, die bonding, and packaging solutions. Kulicke & Soffa serves a global customer base in various industries, including consumer electronics, automotive, and telecommunications, focusing on innovations that enhance manufacturing efficiency and product performance.

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

Kulicke & Soffa's financial performance is challenged by declining revenues and profitability. The income statement shows a significant revenue decline and low profit margins, while cash flow is inconsistent despite some positive indicators. The balance sheet remains strong with low leverage, but overall financial health needs improvement.

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: 49.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 49.11 is above the 20-day moving average (MA) of 43.80, above the 50-day MA of 41.32, and above the 200-day MA of 36.44, indicating a bullish trend. The MACD of 2.57 indicates Negative momentum. The RSI at 68.40 is Neutral, neither overbought nor oversold. The STOCH value of 77.72 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
ACLS	78 Outperform	$2.80B	21.06	13.62%	―	-20.69%	-37.67%
PLAB	74 Outperform	$1.42B	13.68	11.89%	―	-2.04%	8.84%
AMKR	69 Neutral	$11.03B	35.95	7.27%	0.75%	0.13%	-16.17%
FORM	68 Neutral	$4.59B	110.68	4.16%	―	2.29%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KLIC	61 Neutral	$2.59B	12,382.50	0.02%	1.72%	-7.38%	99.38%
COHU	59 Neutral	$1.07B	―	-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.

Kulicke & Soffa Announces Executive Leadership Change

On October 14, 2025, Kulicke & Soffa Industries, Inc. announced the retirement of Chan Pin Chong, Executive Vice President & General Manager of K&S Products & Solutions, effective December 1, 2025. In response, Ivy Qin and John Molnar will report directly to the CEO, Fusen Chen, as they continue to lead their respective segments. This leadership change is expected to maintain the company’s strategic direction and support its commitment to delivering innovative solutions to its key markets.