Kulicke & Soffa Industries Inc (KLIC) stock analysis

P/E above its 5-year median

Kulicke & Soffa Industries's P/E of 33.7 is above its own 5-year median of 26.9.

P/E below the industry

Kulicke & Soffa Industries's P/E of 33.7 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA above its 5-year median

Kulicke & Soffa Industries's EV/EBITDA of 23.4 is above its 5-year median of 19.8.

P/B above the industry

Kulicke & Soffa Industries's price-to-book of 4.20 is above the Electronic Components and Accessories median of 3.49.

Trading above fair value

The share price of $73.20 is above our fair value estimate of $64.63.

Margin of safety under 20%

The price is 13.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -24.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -91.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 1845% over the last twelve months, against a 5-year average of -66.7% a year.

Growing faster than the industry

Revenue grew 44.4% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (fourth quarter of fiscal 2026 net revenue, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 48.2% over the last twelve months, against 43.2% a year earlier.

Return on equity under 15%

Return on equity was 13.2% over the last twelve months and averaged 15.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 29.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Kulicke & Soffa Industries's return on equity of 13.2% is above the Electronic Components and Accessories median of 4.8%.

Earnings shrank over 5 years

Net income shrank 66.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.2% over the last twelve months, against a 5-year average of 10.2%.

Net margin above the industry

Kulicke & Soffa Industries's net margin of 12.2% is above the Electronic Components and Accessories median of 2.9%.

No debt

Kulicke & Soffa Industries has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 836.9 times.

Short-term assets cover short-term debts

Current assets are 3.44 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.75; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Kulicke & Soffa Industries paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Kulicke & Soffa Industries yields 1.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.