PDF Solutions (PDFS) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: N/A
• Average Volume (3M): 260.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: 21.23%
• EPS Growth: -101.40%
• Country: US
• Employees: 539
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.25
• Shares Outstanding: 39,512,960
• 10 Day Avg. Volume: 289,017
• 30 Day Avg. Volume: 260,771
• PEG Ratio: 7.44
• Price to Book (P/B): 4.25
• Price to Sales (P/S): 5.82
• P/FCF Ratio: -140.28
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 5.13
• Enterprise Value/Gross Profit: 7.21
• Enterprise Value/Ebitda: 99.95
• 1Y Price Target: $34.33
• Price Target Upside: 34.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): $217.70M

• Rating: 69 Neutral
• Price Target: $29.00 ▲(13.28% Upside)

PDF Solutions' overall stock score is driven by strong financial performance and positive earnings call highlights, including record revenue and strategic contract wins. However, high valuation metrics and cash flow management challenges weigh on the score. The technical analysis suggests mixed signals, with short-term bearish momentum but longer-term bullish trends.

PDF Solutions Business Overview & Revenue Model

Company Description

PDF Solutions (PDFS) is a leading provider of software solutions and services for the semiconductor industry, specializing in advanced data analytics and process control technologies. The company focuses on enhancing the yield and quality of semiconductor manufacturing processes, offering a suite of products that support design, manufacturing, and testing phases for semiconductor devices. Its core offerings include software platforms that enable customers to analyze data and improve manufacturing efficiency, as well as consulting services to optimize the production process.

How the Company Makes Money

PDF Solutions generates revenue primarily through the sale of software licenses and related services. The company offers a subscription-based model for its software solutions, allowing clients to access its platforms on a recurring basis. Additionally, PDF Solutions earns revenue from professional services, including consulting and training, which help customers implement and maximize the value of its software. Key partnerships with major semiconductor manufacturers and technology firms enhance PDFS's market reach and contribute to its earnings by providing a stable customer base and opportunities for collaborative projects.

PDF Solutions Financial Statement Overview

Summary

PDF Solutions exhibits strong revenue growth and a robust gross profit margin, indicating operational efficiency. The balance sheet is stable with low leverage, but profitability and cash flow management need improvement. The company is on a growth trajectory but should focus on enhancing profitability and cash flow to strengthen its financial position further.

Income Statement

PDF Solutions shows a solid revenue growth rate of 5.46% TTM, indicating a positive trajectory. The gross profit margin is strong at 71.18%, reflecting efficient cost management. However, the net profit margin is relatively low at 2.10%, and the EBIT margin is slightly negative, suggesting some profitability challenges. Overall, the company demonstrates growth potential but needs to improve its profitability metrics.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.032, indicating low leverage and financial stability. The return on equity is modest at 1.70%, showing room for improvement in generating returns for shareholders. The equity ratio is strong, highlighting a solid capital structure. Overall, the balance sheet reflects financial stability with opportunities for enhancing shareholder returns.

Cash Flow

Operating cash flow is positive, but the free cash flow is negative, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.13, suggesting moderate cash generation relative to earnings. The free cash flow to net income ratio is negative, highlighting a need for better cash management. Overall, while operating cash flow is stable, the negative free cash flow requires attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	206.71M	179.47M	165.84M	148.55M	111.06M	88.05M
Gross Profit	147.12M	125.32M	114.09M	100.64M	66.87M	51.28M
EBITDA	10.61M	5.46M	6.12M	4.70M	-6.26M	-8.62M
Net Income	-53.00K	4.06M	3.10M	-3.43M	-21.49M	-40.36M
Balance Sheet
Total Assets	406.40M	315.29M	290.14M	278.67M	273.77M	287.58M
Cash, Cash Equivalents and Short-Term Investments	35.88M	114.89M	135.52M	139.18M	140.23M	145.30M
Total Debt	73.78M	5.18M	6.19M	7.34M	7.02M	8.44M
Total Liabilities	142.02M	69.25M	61.19M	68.66M	54.18M	53.07M
Stockholders Equity	264.38M	246.04M	228.95M	210.01M	219.59M	234.51M
Cash Flow
Free Cash Flow	-20.50M	-7.45M	3.13M	23.72M	190.00K	14.81M
Operating Cash Flow	8.32M	9.70M	14.60M	32.30M	4.24M	21.78M
Investing Cash Flow	-133.69M	-5.94M	-28.99M	84.60M	-4.67M	-150.50M
Financing Cash Flow	65.13M	-11.23M	-5.89M	-24.31M	-5.53M	64.80M

PDF Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDFS, the sentiment is Positive. The current price of 25.6 is below the 20-day moving average (MA) of 26.63, below the 50-day MA of 26.13, and above the 200-day MA of 21.99, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDFS.

PDF Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PDFS	69 Neutral	$1.01B	-13,473.68	-0.02%	―	21.23%	-101.40%
VTEX	66 Neutral	$698.16M	103.31	6.53%	―	3.62%	-20.45%
PRO	63 Neutral	$1.12B	―	―	―	8.92%	60.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$587.95M	―	-26.69%	―	13.09%	32.34%
RSKD	51 Neutral	$796.73M	―	-10.54%	―	6.54%	-19.17%
BMBL	47 Neutral	$391.20M	―	-25.34%	―	-7.43%	61.36%

PDF Solutions Corporate Events

PDF Solutions Reports Record Revenue and Strategic Growth

PDF Solutions’ latest earnings call painted a picture of robust performance and strategic growth, underscored by record revenue and significant contract wins. The company demonstrated impressive advancements, particularly in AI and customer base expansion. However, there were concerns regarding a decline in integrated yield ramp revenue and a decrease in cash reserves due to ongoing investments.

PDF Solutions Reports Record Q3 2025 Revenues

PDF Solutions, Inc. is a prominent provider of data solutions tailored for the semiconductor and electronics industries, focusing on enhancing product yield and operational efficiency through advanced analytics and machine learning.

PDF Solutions Reports Strong Q2 Earnings and Positive Outlook

PDF Solutions’ recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth, particularly in analytics and the China market, alongside high gross margins and a favorable full-year outlook. Despite some concerns about declining revenue streams, increased operating expenses, and operating cash flow consumption, the overall sentiment was optimistic, highlighting the company’s strong performance and future potential.

PDF Solutions Reports Record Q2 2025 Revenues

PDF Solutions, Inc., headquartered in Santa Clara, California, is a prominent provider of data solutions for the semiconductor and electronics industries, offering products and services that enhance manufacturing efficiency and product quality through advanced analytics and machine learning.