Kulicke & Soffa (KLIC) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: 2.01%
• Average Volume (3M): 498.74K
• Price to Earnings (P/E): 516.6
• Beta (1Y): 1.52
• Revenue Growth: -9.54%
• EPS Growth: N/A
• Country: US
• Employees: 2,677
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.07
• Shares Outstanding: 52,145,527
• 10 Day Avg. Volume: 492,957
• 30 Day Avg. Volume: 498,744
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: 30.66
• 1Y Price Target: $38.25
• Price Target Upside: -6.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: $43.00 ▲(5.31% Upside)

Kulicke & Soffa's overall stock score is driven by its financial stability and positive earnings call outlook, despite challenges in profitability and valuation concerns. The company's focus on advanced technologies and market recovery provides a cautiously optimistic view, but high P/E ratio and trade uncertainties remain significant risks.

Positive Factors

Financial Stability

Kulicke & Soffa's low debt levels indicate conservative financial management, providing stability and flexibility for future investments and growth.

Market Opportunities

By investing in advanced technologies, Kulicke & Soffa positions itself to capitalize on emerging market trends, particularly in automotive EV charging and memory sectors.

Shareholder Returns

Consistent share repurchases and dividends reflect strong cash flow management and a commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

Automotive Market Headwinds

Trade uncertainties and market hesitations in key sectors like automotive can hinder Kulicke & Soffa's ability to secure orders, affecting future revenue streams.

Free Cash Flow Decline

A decline in free cash flow growth can limit Kulicke & Soffa's ability to invest in new opportunities or weather economic downturns, impacting long-term sustainability.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	657.84M	706.23M	742.49M	1.50B	1.52B	623.18M
Gross Profit	284.06M	268.75M	358.65M	748.32M	696.99M	297.98M
EBITDA	42.76M	-33.53M	89.83M	492.71M	432.26M	78.25M
Net Income	5.95M	-69.01M	57.15M	433.55M	367.16M	52.30M
Balance Sheet
Total Assets	1.12B	1.24B	1.50B	1.59B	1.60B	1.05B
Cash, Cash Equivalents and Short-Term Investments	556.48M	577.15M	759.40M	775.54M	739.79M	530.13M
Total Debt	36.35M	40.96M	48.41M	41.69M	42.99M	24.23M
Total Liabilities	287.37M	296.15M	325.22M	393.95M	506.39M	296.57M
Stockholders Equity	837.53M	944.01M	1.17B	1.19B	1.10B	757.99M
Cash Flow
Free Cash Flow	121.06M	14.89M	129.00M	367.20M	277.26M	82.69M
Operating Cash Flow	137.78M	31.04M	173.40M	390.19M	300.03M	94.41M
Investing Cash Flow	-91.82M	-138.50M	-91.34M	133.80M	-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 Price: 40.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 40.83 is above the 20-day moving average (MA) of 40.17, above the 50-day MA of 39.33, and above the 200-day MA of 36.55, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 81.43 is Negative, 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
FORM	―	$3.33B	77.79	4.53%	―	8.30%	-63.69%
AMKR	―	$8.10B	26.74	7.37%	2.22%	-1.20%	-19.46%
ACLS	―	$2.58B	17.02	16.19%	―	-19.38%	-33.03%
PLAB	―	$1.41B	13.61	9.89%	―	-1.79%	-22.58%
KLIC	―	$2.13B	516.58	0.66%	2.01%	-9.54%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COHU	―	$1.07B	-12.61	-10.09%	―	-21.27%	-207.30%

Kulicke & Soffa Corporate Events

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.

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.

Kulicke & Soffa’s Earnings Call: Optimism Amid Challenges

Kulicke & Soffa Industries, Inc. recently held its earnings call, revealing a cautiously optimistic outlook. The company is focusing on technological advancements and market expansion, despite facing challenges in the automotive and industrial sectors due to trade uncertainties.

Kulicke & Soffa Reports Mixed Q3 2025 Results

Kulicke & Soffa Industries, Inc. is a global leader in semiconductor assembly technology, providing innovative solutions for the automotive, compute, industrial, memory, and communications markets.