tiprankstipranks
Trending News
More News >
Kulicke & Soffa (KLIC)
NASDAQ:KLIC
Advertisement

Kulicke & Soffa (KLIC) AI Stock Analysis

Compare
639 Followers

Top Page

KLIC

Kulicke & Soffa

(NASDAQ:KLIC)

Rating:62Neutral
Price Target:
$40.00
▲(6.19% Upside)
Kulicke & Soffa's overall stock score is driven by its financial stability and positive earnings call outlook, despite challenges in revenue growth and profitability. The high P/E ratio suggests overvaluation, and the lack of technical indicators limits market position assessment. The company's focus on technological advancements and market expansion provides a cautiously optimistic outlook.
Positive Factors
Financial Performance
Kulicke & Soffa reported a beat-and-raise quarter and guided the September quarter meaningfully up QoQ.
Growth Prospects
Management is showing reasonably strong conviction on growth next year, as they see recent order intake and quoting activities have gone up meaningfully.
Negative Factors
Market Demand
The decline in auto and industrial demand, especially in Southeast Asia, is impacting the company's performance.
Revenue Guidance
June Q revenue guidance was significantly below expectations, indicating weakness in the auto and industrial customer segments.

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

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 semiconductor assembly equipment, which is essential for the packaging of semiconductor chips. The company's revenue model is heavily reliant on equipment sales, which are complemented by after-sales services, including maintenance, repair, and upgrades. Key revenue streams include the sale of new systems, spare parts, and consumables, as well as service contracts that provide ongoing support to customers. Additionally, Kulicke & Soffa benefits from strategic partnerships with major semiconductor manufacturers and foundries, which help to secure long-term contracts and ensure a steady flow of business. Market trends, such as the increasing demand for advanced packaging technologies and the proliferation of electronic devices, also contribute to the company's earnings potential.

Kulicke & Soffa Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q3-2025)
|
% Change Since: 17.32%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
Kulicke & Soffa's earnings call reflected a cautiously optimistic outlook, highlighting strong performance in certain segments and strategic advancements. However, persistent headwinds in the automotive and industrial markets, coupled with trade uncertainties, presented challenges. The company remains focused on leveraging technology transitions and maintaining financial health, but market visibility and seasonality pose risks to sustained growth.
Q3-2025 Updates
Positive Updates
Revenue and Earnings Performance
Kulicke & Soffa reported Q3 2025 revenue of $148.4 million, exceeding expectations. Despite a reported loss per share of $0.06, non-GAAP earnings per share came in at $0.07, indicating a focus on efficiency and customer engagement.
Advanced Dispense and Vertical Wire Solutions
The company received initial purchase orders for Advanced Dispense from automotive OEMs and other clients, with plans to introduce new capabilities at SEMICON Taiwan. Vertical Wire solutions are expected to begin high-volume production in fiscal 2026, driven by demand in the memory market.
Thermo-Compression and FTC Solutions
Kulicke & Soffa's FTC solutions are positioned as best-in-class, supporting multiple large customers in mass production. The company anticipates shipping an initial FTC system by the end of calendar year 2025, projecting significant growth in this segment.
Shareholder Value and Financial Health
Kulicke & Soffa repurchased 668,000 shares during the June quarter, representing 1.3% of diluted shares, and provided over $270 million in dividends and repurchases over seven quarters, maintaining a dividend yield above 2%.
Positive Outlook for Key Markets
The company anticipates a 15% sequential revenue increase to $170 million in the September quarter, with improvements in general semiconductor and memory markets.
Negative Updates
Automotive and Industrial Market Headwinds
Order hesitation persisted in the automotive and industrial markets due to trade uncertainty, affecting global supply chains and contributing to short-term softness expected to continue into the September quarter.
Impact of Trade Uncertainty
Uncertainty surrounding global trade dynamics has created additional challenges in customer capacity planning decisions, impacting near-term industry visibility and contributing to a cautious outlook.
Challenges with Intel CapEx Cuts
The company noted that engagements with Intel remain healthy but acknowledged a reduction in revenue compared to the previous year, raising concerns about future FTC opportunities.
Seasonality and Market Visibility
Kulicke & Soffa indicated potential seasonal weakness in the December quarter, with overall market visibility remaining unclear and gradual recovery expected in fiscal 2026.
Company Guidance
During the Q3 2025 earnings call, Kulicke & Soffa provided guidance for the upcoming months, emphasizing their cautious optimism amidst ongoing trade uncertainties. The company reported a revenue of $148.4 million for the quarter and projected a 15% sequential increase to approximately $170 million for the next quarter. Gross margins are expected to rise to 47%, with non-GAAP earnings per share anticipated at $0.22. Despite headwinds in the automotive sector, improvements in general semiconductor and memory markets were highlighted, supported by rising utilization rates. The company continues to focus on advanced technologies like vertical wire and thermo-compression bonding, with expectations of significant market opportunities, particularly in the automotive EV charging infrastructure and memory sectors. Kulicke & Soffa also expect a gradual recovery in fiscal 2026, driven by new product developments and market share gains.

Kulicke & Soffa Financial Statement Overview

Summary
Kulicke & Soffa's financial performance is mixed. The income statement shows declining revenues and profitability, but the balance sheet remains robust with low leverage and strong equity. Cash flow is stable, though concerns about sustainability exist due to recent declines in net income.
Income Statement
65
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
75
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
70
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue657.84M706.23M742.49M1.50B1.52B623.18M
Gross Profit284.06M268.75M358.65M748.32M696.99M297.98M
EBITDA42.76M-33.53M89.83M492.71M432.26M78.25M
Net Income5.95M-69.01M57.15M433.55M367.16M52.30M
Balance Sheet
Total Assets1.12B1.24B1.50B1.59B1.60B1.05B
Cash, Cash Equivalents and Short-Term Investments556.48M577.15M759.40M775.54M739.79M530.13M
Total Debt36.35M40.96M48.41M41.69M42.99M24.23M
Total Liabilities287.37M296.15M325.22M393.95M506.39M296.57M
Stockholders Equity837.53M944.01M1.17B1.19B1.10B757.99M
Cash Flow
Free Cash Flow121.06M14.89M129.00M367.20M277.26M82.69M
Operating Cash Flow137.78M31.04M173.40M390.19M300.03M94.41M
Investing Cash Flow-91.82M-138.50M-91.34M133.80M-81.71M-125.96M
Financing Cash Flow-168.94M-196.10M-111.88M-321.19M-44.26M-145.81M

Kulicke & Soffa Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.67
Price Trends
50DMA
35.20
Positive
100DMA
33.52
Positive
200DMA
38.43
Negative
Market Momentum
MACD
0.60
Negative
RSI
61.16
Neutral
STOCH
58.95
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 37.67 is above the 20-day moving average (MA) of 35.16, above the 50-day MA of 35.20, and below the 200-day MA of 38.43, indicating a neutral trend. The MACD of 0.60 indicates Negative momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 58.95 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.47B16.6216.19%-19.38%-33.03%
62
Neutral
$1.90B460.510.66%2.16%-9.54%
62
Neutral
$2.15B51.824.53%8.30%-63.69%
61
Neutral
$34.98B7.37-10.82%1.91%8.82%-8.66%
59
Neutral
$1.31B17.508.64%4.73%-2.16%-2.77%
56
Neutral
$927.10M-10.09%-21.27%-207.30%
49
Neutral
$1.97B26.74-4.11%2.57%-6.36%-151.95%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KLIC
Kulicke & Soffa
37.67
-4.37
-10.39%
ACLS
Axcelis Technologies
81.29
-28.51
-25.97%
COHU
Cohu
20.48
-5.84
-22.19%
FORM
Formfactor
29.16
-20.47
-41.25%
HIMX
Himax Technologies
7.82
2.22
39.64%
VSH
Vishay Intertechnology
15.58
-4.42
-22.10%

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.

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.Date of analysis: Aug 14, 2025