Kulicke & Soffa (KLIC) AI Stock Analysis

Compare

635 Followers

Top Page

Kulicke & Soffa

(NASDAQ:KLIC)

Rating:58Neutral

Price Target:

$34.00

▼(-3.82%Downside)

Kulicke & Soffa's overall stock score is driven by mixed financial performance, with strong balance sheet and cash flow stability but declining revenues and profitability. Technical analysis shows a neutral trend, while valuation metrics suggest overvaluation. The earnings call indicates potential growth in new technologies, yet significant challenges remain. The cessation of the EA business adds further financial strain.

Positive Factors

AI Applications

There is enthusiasm about Kulicke & Soffa's TCB opportunity as TSMC tests it for AI applications.

Revenue Growth

Fluxless Thermo-Compression traction is progressing well, with management expecting significant revenue growth as the solution is adopted by leading edge customers.

Negative Factors

Guidance

June Q revenue guidance was significantly below expectations, indicating weakness in the auto and industrial customer segments.

Market Competition

The Thermo-Compression Bonders market for High Bandwidth Memory appears crowded with many existing suppliers.

Market Demand

The decline in auto and industrial demand, especially in Southeast Asia, is impacting the company's performance.

Kulicke & Soffa (KLIC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.87B

Dividend Yield2.41%

Average Volume (3M)700.92K

Price to Earnings (P/E)97.8

Beta (1Y)1.48

Revenue Growth-6.17%

EPS GrowthN/A

CountryUS

Employees2,677

SectorTechnology

Sector Strength84

IndustrySemiconductors

Share Statistics

EPS (TTM)-0.52

Shares Outstanding52,769,350

10 Day Avg. Volume821,992

30 Day Avg. Volume700,918

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)1.94

Price to Sales (P/S)0.00

P/FCF Ratio6.31

Enterprise Value/Market Cap0.97

Enterprise Value/Revenue0.64

Enterprise Value/Gross Profit6.02

Enterprise Value/Ebitda-1.11K

Forecast

1Y Price Target

$40.00

Price Target Upside13.15% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Kulicke & Soffa Business Overview & Revenue Model

Company DescriptionKulicke 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 MoneyKulicke & Soffa generates revenue primarily through the sale of its semiconductor assembly equipment and tools. The company's key revenue streams include the sale of wire bonding and wedge bonding machines, which are crucial in the semiconductor manufacturing process. Additionally, Kulicke & Soffa provides advanced packaging solutions and electronic assembly products, further diversifying its revenue base. The company also offers aftermarket services, including spare parts and equipment maintenance, which contribute to its recurring revenue. Strategic partnerships and collaborations with leading semiconductor manufacturers enable Kulicke & Soffa to maintain a competitive edge and drive sales growth in the rapidly evolving electronics industry.

Kulicke & Soffa Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q2-2025)

% Change Since: 11.37%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a company in transition, with strong product launches and growth in key technology areas such as Thermo-Compression and Vertical Wire. However, significant challenges remain due to the discontinuation of the Electronics Assembly business, impacting financial performance, and macroeconomic uncertainties affecting order activity in key regions.

Q2-2025 Updates

Positive Updates

Launch of ATPremier MEM Plus

Kulicke & Soffa announced the launch of the ATPremier MEM Plus, a new Wafer-Level-Packaging solution optimized for stacked DRAM opportunities, indicating strong potential for future growth in memory packaging.

Advanced Dispense Portfolio Growth

The company received an order from a high-volume U.S.-based integrated device manufacturer and is seeing strong performance in its solid-state battery opportunity, indicating potential for growth in this segment.

Thermo-Compression and Vertical Wire Opportunities

Kulicke & Soffa is well positioned to capture opportunities in Thermo-Compression and Vertical Wire technologies, which are becoming incumbent technologies for high-performance applications.

Strong Customer Engagement

The company has nearly 120 systems installed across 10 different highly-engaged customers, demonstrating strong customer relationships and market penetration.

New Product Launches in Power Semiconductor

Launched a new Sonotrode-enabled pin welding system for power semiconductor applications, extending market reach in response to growing demand for electric vehicles and sustainable energy.

Negative Updates

Discontinuation of Electronics Assembly Business

Kulicke & Soffa intends to discontinue its Electronics Assembly equipment business, resulting in $86.6 million in related charges for inventory write-down, supply chain, asset impairment, and restructuring.

Revenue and Gross Margin Decline

The company reported revenue of $162 million and gross margins of 24.9%, both negatively impacted by the EA related inventory and supply chain charges of $38.6 million.

Sequential Order Activity Down in Southeast Asia

Sequential order activity decreased in Southeast Asia, primarily affecting the Automotive and Industrial market, due to macroeconomic uncertainty and trade tensions.

High Utilization Rates Without Capacity Buys

Despite high utilization rates in China and Taiwan, there is hesitation in capacity buys due to tariff uncertainties, affecting potential revenue growth.

Company Guidance

During the Kulicke & Soffa fiscal second-quarter 2025 earnings call, the company provided several key metrics and guidance. They reported a revenue of $162 million for the March quarter, with gross margins at 24.9%, impacted by $38.6 million in inventory and supply chain charges related to the wind-down of their EA equipment business. Operating expenses were $125.1 million, which included restructuring and impairment charges totaling $48.6 million, resulting in an adjusted operating expense of $76.5 million. The company announced a revenue outlook for the June quarter of $145 million, plus or minus $10 million, with expected gross margins of 46.5%. Non-GAAP operating expenses are anticipated to be $68 million, with a GAAP EPS loss of $0.09 and a non-GAAP EPS gain of $0.05 per share. Additionally, the company completed a share repurchase program, buying over 500,000 shares for $21.3 million. The call highlighted the impact of macroeconomic uncertainties and trade dynamics on their market outlook, with particular emphasis on hesitations in Southeast Asia's automotive and industrial sectors. However, they noted utilization improvements in Taiwan and China, which could potentially lead to capacity additions as conditions stabilize.

Kulicke & Soffa Financial Statement Overview

Summary

Kulicke & Soffa's financial performance shows mixed results. The income statement reflects challenges with declining revenue and profitability, but the balance sheet is strong with low leverage and significant cash reserves. Cash flow is positive, though volatile, suggesting efficient cash management but concerns about sustainability given recent declines.

Income Statement

Positive

Kulicke & Soffa's income statement reflects a challenging period with declining revenue and profitability. The TTM data shows a gross profit margin of 43.39% and a net profit margin of 3.11%, indicating a significant drop compared to previous years. Revenue and profit margins have decreased, driven by industry headwinds. Despite this, the company has managed to maintain a positive EBIT and EBITDA margin, showing operational resilience.

Balance Sheet

Positive

The balance sheet remains robust, with a strong equity position and low leverage. The debt-to-equity ratio stands at 0.04, and the equity ratio is 75.49%, indicating financial stability. However, the ROE has decreased due to lower net income, but the company still maintains a healthy balance sheet with significant cash reserves.

Cash Flow

Positive

Cash flow analysis reveals a mixed picture. Operating cash flow is strong relative to net income, suggesting efficient cash management. The free cash flow growth rate has been volatile, but the company maintains a positive free cash flow to net income ratio. There are concerns about the sustainability of cash flows given the recent declines in net income.

TTM	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
691.08M	706.23M	742.49M	1.50B	1.52B	623.18M
	Gross Profit
299.86M	268.75M	358.65M	748.32M	696.99M	297.98M
	EBIT
12.95M	-92.50M	39.44M	470.07M	412.45M	58.51M
	EBITDA
52.21M	-33.53M	89.83M	492.71M	432.26M	78.25M
	Net Income Common Stockholders
21.50M	-69.01M	57.15M	433.55M	367.16M	52.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
581.52M	577.15M	759.40M	775.54M	739.79M	530.13M
	Total Assets
1.15B	1.24B	1.50B	1.59B	1.60B	1.05B
	Total Debt
36.28M	40.96M	48.41M	41.69M	42.99M	24.23M
	Net Debt
-250.24M	-186.18M	-480.99M	-513.84M	-319.80M	-163.90M
	Total Liabilities
281.10M	296.15M	325.22M	393.95M	506.39M	296.57M
	Stockholders Equity
864.17M	944.01M	1.17B	1.19B	1.10B	757.99M
Cash Flow		Free Cash Flow
139.99M	14.89M	129.00M	367.20M	277.26M	82.69M
	Operating Cash Flow
157.29M	31.04M	173.40M	390.19M	300.03M	94.41M
	Investing Cash Flow
-37.77M	-138.50M	-91.34M	133.80M	-81.71M	-125.96M
	Financing Cash Flow
-192.26M	-196.10M	-111.88M	-321.19M	-44.26M	-145.81M

Kulicke & Soffa Technical Analysis

Technical Analysis Sentiment

Positive

Last Price35.35

Price Trends

50DMA

32.17

Positive

100DMA

35.49

Negative

200DMA

40.35

Negative

Market Momentum

MACD

0.57

Negative

RSI

61.73

Neutral

STOCH

68.24

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 35.35 is above the 20-day moving average (MA) of 33.29, above the 50-day MA of 32.17, and below the 200-day MA of 40.35, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 68.24 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 34 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	82 Outperform	$2.09B	11.92	18.45%	―	-15.14%	-28.30%
HIMX	73 Outperform	$1.55B	17.72	9.79%	3.26%	0.61%	80.97%
FORM	66 Neutral	$2.69B	50.41	5.74%	―	15.33%	-47.04%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
COHU	60 Neutral	$830.54M	―	-9.87%	―	-30.75%	-3668.44%
KLIC	58 Neutral	$1.87B	97.79	2.29%	2.41%	-6.17%	―
VSH	51 Neutral	$2.06B	26.74	-3.14%	2.64%	-11.31%	-127.88%

* Technology Sector Average

Performance Comparison

KLIC

Kulicke & Soffa

35.35

-11.37

-24.34%

ACLS

Axcelis Technologies

68.96

-71.69

-50.97%

COHU

Cohu

18.56

-13.70

-42.47%

FORM

Formfactor

34.88

-25.10

-41.85%

HIMX

Himax Technologies

9.16

2.00

27.93%

VSH

Vishay Intertechnology

15.73

-6.24

-28.40%

Kulicke & Soffa Corporate Events

Business Operations and Strategy

Kulicke & Soffa Ends Facility Agreements with MUFG

Neutral

Jun 9, 2025

On June 6, 2025, Kulicke & Soffa Industries, Inc. and its subsidiary terminated their Facility Agreements with MUFG Bank, Ltd., Singapore Branch, which included an overdraft facility of up to $150 million for general corporate purposes. The termination of these agreements had no outstanding amounts or early termination penalties, indicating a stable financial position for the company.

The most recent analyst rating on (KLIC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Kulicke & Soffa stock, see the KLIC Stock Forecast page.

Business Operations and StrategyFinancial Disclosures

Kulicke & Soffa Ceases EA Equipment Business

Negative

Mar 31, 2025

Kulicke & Soffa announced the cessation of its EA equipment business, which is expected to result in significant financial changes. The company anticipates a reduction in revenue by $25 million to $29 million, a decrease in gross profit by $7 million to $11 million, and a drop in operating expenses by $24 million to $28 million, impacting its long-term financial model.

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.