PDF Solutions Inc (PDFS) stock analysis
Close on Nov 11, 2026Market cap $1.76BP/E 110.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed12 of 30 checks passed
PDF Solutions passes 12 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 3/6
- Past performance
- 3/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
Low debt
Debt is 17.1% of shareholders' equity, under the 40% we consider low.
Revenue growing 10%+ a year
Revenue grew 13.8% a year over the last three fiscal years.
Interest well covered
Operating income covers interest expense 5.2 times.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 75.3% of total debt.
What to watch
Margin of safety under 20%
The price is 123% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $41.79 is above our fair value estimate of $18.71.
Return on equity under 15%
Return on equity was 4.9% over the last twelve months and averaged -1.6% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 5.4%, below the 10% that usually covers the cost of capital.
Valuation1/6
P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
PDF Solutions's P/E of 110.0 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
PDF Solutions's EV/EBITDA of 56.6 is below its 5-year median of 135.6.
P/B above the industry
PDF Solutions's price-to-book of 4.61 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $41.79 is above our fair value estimate of $18.71.
Margin of safety under 20%
The price is 123% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 13.8% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 22.1% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance unchanged
The latest outlook (2026 annual revenue growth target, Aug 6, 2026) was maintained, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 71.6% over the last twelve months, against 71.2% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 4.9% over the last twelve months and averaged -1.6% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 5.4%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
PDF Solutions's return on equity of 4.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 6.3% over the last twelve months, against a 5-year average of -3.6%.
Net margin above the industry
PDF Solutions's net margin of 6.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health5/6
Low debt
Debt is 17.1% of shareholders' equity, under the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 75.3% of total debt.
Interest well covered
Operating income covers interest expense 5.2 times.
Short-term assets cover short-term debts
Current assets are 3.29 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 7.50; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
PDF Solutions has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$18.71
The share price is 123% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 27.6× | – | 27.6× | $10.48 | 47% |
| EV/EBITDA | 30.0× | 135.6× | 18.8× | $22.61 | 41% |
| P/B | 4.2× | 5.0× | 3.3× | $37.99 | 12% |
| Earnings powerleft out, too far from the others | 12.6% cost of equity | – | – | $2.24 | – |
| Fair value | $18.71 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $28.49M
- Value traded per 1% price move
- $6.79M
Downside
High risk
- Typical loss in a bad month
- 29.7%
- Volatility (annualized)
- 73%
- Sharpe ratio, 1 year
- 0.68
- Beta to the S&P 500 (5Y)
- 1.54
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +22.0% | +13.8% | +20.0% | +8.4% | |
| Gross profit | +26.4% | +16.3% | +25.3% | +10.4% | |
| Operating income | +525.3% | – | – | -11.2% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 4.9% | -18.7% | -0.2% | |
| Return on assets | 4.4% | -15.3% | -0.2% | |
| Current ratio | 9.19 | 4.58 | 2.28 | |
| Debt to equity | – | – | 0.25 | |
| Net debt to EBITDA | – | – | 2.49× | |
| Capex to revenue | 10.5% | 6.8% | 14.9% | |
| Diluted shares | 32M | 34M | 39M |
Where the cash went
Fiscal 2021 to 2025, five years combined
PDF Solutions generated $84.90M from operations and spent $107.98M on capital expenditure, dividends and share buybacks. 68% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -0.3% | 0.60× | 1.42× | -0.2% |
| FY2024 | 2.3% | 0.59× | 1.27× | 1.7% |
| FY2023 | 1.9% | 0.58× | 1.30× | 1.4% |
| FY2022 | -2.3% | 0.54× | 1.29× | -1.6% |
| FY2021 | -19.3% | 0.40× | 1.24× | -9.5% |
| FY2020 | -45.8% | 0.33× | 1.22× | -18.7% |
| FY2019 | -6.3% | 0.37× | 1.18× | -2.7% |
| FY2018 | -9.0% | 0.38× | 1.13× | -3.9% |
| FY2017 | -1.3% | 0.46× | 1.12× | -0.7% |
| FY2016 | 8.5% | 0.52× | 1.11× | 4.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$640.00K
- Cash generatingOperating cash flow above zero$24.05M
- Return on assets improvedROA up on the prior year1.4% → -0.2%
- Earnings backed by cashOperating cash flow above net income$24.05M vs -$640.00K
- Less leverageLong-term debt to assets fell0.0% → 15.5%
- Better liquidityCurrent ratio rose3.40 → 2.28
- No dilutionShare count did not rise39M → 39M
- Gross margin improvedGross margin up on the prior year69.83% → 72.32%
- More efficientAsset turnover rose0.62 → 0.69
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