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Kulicke & Soffa (KLIC)
NASDAQ:KLIC
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Kulicke & Soffa
(NASDAQ:KLIC)
64Neutral
Positive Factors
Financial Performance
New $300M share repurchase authorization is a positive and total buyback capacity is ~$330M entering the Dec Q.
Market Expansion
China is viewed as an upside driver because the massive front-end capacity buildout in China will eventually lead to back-end capacity investments in the country.
Product Development
There is enthusiasm about Kulicke & Soffa's TCB opportunity as TSMC tests it for AI applications.
Negative Factors
Competitive Environment
The Thermo-Compression Bonders market for High Bandwidth Memory appears crowded with many existing suppliers.
Financial Guidance
June Q revenue guidance was significantly below expectations, indicating weakness in the auto and industrial customer segments.
Market Demand
The decline in auto and industrial demand, especially in Southeast Asia, is impacting the company's performance.
Kulicke & Soffa (KLIC) vs. S&P 500 (SPY)
Market Cap
$1.83B
Dividend Yield2.34%
Average Volume (3M)776.17K
Price to Earnings (P/E)95.7
Beta (1Y)1.49
Revenue Growth-6.17%
EPS GrowthN/A
CountryUS
Employees2,677
SectorTechnology
Sector Strength77
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.52
Shares Outstanding52,769,350
10 Day Avg. Volume749,680
30 Day Avg. Volume776,167
Financial Highlights & Ratios
PEG Ratio4.63
Price to Book (P/B)1.76
Price to Sales (P/S)0.00
P/FCF Ratio48.07
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit4.39
Enterprise Value/Ebitda-18.06
Forecast
1Y Price Target
$40.00Price Target Upside16.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
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 its semiconductor and electronic assembly equipment. The company earns money by selling capital equipment, tools, and consumables required for semiconductor manufacturing processes. Key revenue streams include sales of wire bonding equipment, advanced packaging solutions, and aftermarket products such as spares and services. Additionally, Kulicke & Soffa benefits from strategic partnerships and collaborations with semiconductor manufacturers and industry leaders, which enhance its market reach and drive sales growth. The company's earnings are also influenced by the demand for semiconductor devices, which affects the purchasing behavior of its customers in the electronics manufacturing sector.
Kulicke & Soffa Financial Statement Overview
Summary
Kulicke & Soffa is facing financial difficulties, with declining revenue and profitability. Despite this, the company exhibits a strong balance sheet with low leverage and a solid equity base. Cash flow metrics show resilience, indicating potential for recovery if revenue stabilizes and operational efficiency improves.Income Statement
Kulicke & Soffa's income statement reveals a challenging period. The TTM (Trailing-Twelve-Months) Gross Profit Margin stands at 47.35%, which is quite robust. However, the Net Profit Margin is a mere 0.48%, indicating minimal profitability. Revenue has decreased notably from $1.5 billion in 2021 to $701 million in the TTM, reflecting a significant contraction in sales. The EBIT Margin is 5.69%, and EBITDA Margin is 3.64%, both showing a steep decline from past performance, suggesting operational challenges and cost management issues.45
Neutral
Balance Sheet
The balance sheet indicates a strong equity position with a Debt-to-Equity Ratio of 0.04, demonstrating low leverage. The Return on Equity (ROE) for the TTM is only 0.34%, highlighting low returns on shareholder investments. The Equity Ratio is 77.73%, reflecting a solid capital structure with most assets financed by equity. Despite low profitability, the company maintains a healthy financial position with ample cash reserves.70
Positive
Cash Flow
Kulicke & Soffa's cash flow analysis shows a Free Cash Flow Growth Rate of 205.95%, indicating improved cash generation. The Operating Cash Flow to Net Income Ratio is 17.13 for the TTM, suggesting strong cash flow relative to net income. The Free Cash Flow to Net Income Ratio is 13.62, reflecting efficient cash usage. However, fluctuations in operating cash flows and investment cash outflows highlight potential volatility.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 701.17M | 706.23M | 742.49M | 1.50B | 1.52B | 623.18M | Gross Profit |
| 331.95M | 268.75M | 358.65M | 748.32M | 696.99M | 297.98M | EBIT |
| 39.90M | -92.50M | 39.44M | 470.07M | 412.45M | 58.51M | EBITDA |
| 36.90M | -33.53M | 89.83M | 492.71M | 432.26M | 78.25M | Net Income Common Stockholders |
| 3.34M | -69.01M | 57.15M | 433.55M | 367.16M | 52.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 634.75M | 577.15M | 759.40M | 775.54M | 739.79M | 530.13M | Total Assets |
| 1.30B | 1.24B | 1.50B | 1.59B | 1.60B | 1.05B | Total Debt |
| 41.33M | 40.96M | 48.41M | 41.69M | 42.99M | 24.23M | Net Debt |
| -318.42M | -186.18M | -480.99M | -513.84M | -319.80M | -163.90M | Total Liabilities |
| 286.53M | 296.15M | 325.22M | 393.95M | 506.39M | 296.57M | Stockholders Equity |
| 1.01B | 944.01M | 1.17B | 1.19B | 1.10B | 757.99M |
| Cash Flow | Free Cash Flow | ||||
| 35.35M | 14.89M | 129.00M | 367.20M | 277.26M | 82.69M | Operating Cash Flow |
| 57.27M | 31.04M | 173.40M | 390.19M | 300.03M | 94.41M | Investing Cash Flow |
| 4.08M | -138.50M | -91.34M | 133.80M | -81.71M | -125.96M | Financing Cash Flow |
| -206.43M | -196.10M | -111.88M | -321.19M | -44.26M | -145.81M |
Kulicke & Soffa Technical Analysis
Neutral
34.25
Price Trends
33.06
Positive
38.46
Negative
41.30
Negative
Market Momentum
0.25
Negative
58.62
Neutral
84.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLIC, the sentiment is Neutral. The current price of 34.25 is above the 20-day moving average (MA) of 31.85, above the 50-day MA of 33.06, and below the 200-day MA of 41.30, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 84.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.02B | 11.49 | 18.45% | ― | -15.14% | -28.30% | |
70 Neutral | $1.47B | 16.78 | 9.79% | 3.33% | 0.61% | 80.97% | |
66 Neutral | $2.50B | 48.13 | 5.74% | ― | 15.33% | -47.04% | |
64 Neutral | $1.83B | 95.71 | 2.29% | 2.34% | -6.17% | ― | |
62 Neutral | $844.02M | ― | -9.87% | ― | -30.75% | -3668.44% | |
60 Neutral | $11.60B | 10.64 | -6.04% | 2.94% | 7.87% | -11.74% | |
58 Neutral | $2.01B | 26.74 | -3.14% | 2.69% | -11.31% | -127.88% |
* Technology Sector Average
Performance Comparison
KLIC
Kulicke & Soffa
34.25
-12.82
-27.24%
ACLS
Axcelis Technologies
62.75
-50.82
-44.75%
COHU
Cohu
18.05
-11.68
-39.29%
FORM
Formfactor
33.30
-21.24
-38.94%
HIMX
Himax Technologies
8.50
2.07
32.19%
VSH
Vishay Intertechnology
15.13
-8.18
-35.09%
Kulicke & Soffa Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q2-2025)
| % Change Since: 7.91%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, with strong product launches and growth in key technology areas such as Thermo-Compression and Vertical Wire. However, significant challenges remain due to the discontinuation of the Electronics Assembly business, impacting financial performance, and macroeconomic uncertainties affecting order activity in key regions.Q2-2025 Updates
Positive Updates
Launch of ATPremier MEM Plus
Kulicke & Soffa announced the launch of the ATPremier MEM Plus, a new Wafer-Level-Packaging solution optimized for stacked DRAM opportunities, indicating strong potential for future growth in memory packaging.
Advanced Dispense Portfolio Growth
The company received an order from a high-volume U.S.-based integrated device manufacturer and is seeing strong performance in its solid-state battery opportunity, indicating potential for growth in this segment.
Thermo-Compression and Vertical Wire Opportunities
Kulicke & Soffa is well positioned to capture opportunities in Thermo-Compression and Vertical Wire technologies, which are becoming incumbent technologies for high-performance applications.
Strong Customer Engagement
The company has nearly 120 systems installed across 10 different highly-engaged customers, demonstrating strong customer relationships and market penetration.
New Product Launches in Power Semiconductor
Launched a new Sonotrode-enabled pin welding system for power semiconductor applications, extending market reach in response to growing demand for electric vehicles and sustainable energy.
Negative Updates
Discontinuation of Electronics Assembly Business
Kulicke & Soffa intends to discontinue its Electronics Assembly equipment business, resulting in $86.6 million in related charges for inventory write-down, supply chain, asset impairment, and restructuring.
Revenue and Gross Margin Decline
The company reported revenue of $162 million and gross margins of 24.9%, both negatively impacted by the EA related inventory and supply chain charges of $38.6 million.
Sequential Order Activity Down in Southeast Asia
Sequential order activity decreased in Southeast Asia, primarily affecting the Automotive and Industrial market, due to macroeconomic uncertainty and trade tensions.
High Utilization Rates Without Capacity Buys
Despite high utilization rates in China and Taiwan, there is hesitation in capacity buys due to tariff uncertainties, affecting potential revenue growth.
Company Guidance
During the Kulicke & Soffa fiscal second-quarter 2025 earnings call, the company provided several key metrics and guidance. They reported a revenue of $162 million for the March quarter, with gross margins at 24.9%, impacted by $38.6 million in inventory and supply chain charges related to the wind-down of their EA equipment business. Operating expenses were $125.1 million, which included restructuring and impairment charges totaling $48.6 million, resulting in an adjusted operating expense of $76.5 million. The company announced a revenue outlook for the June quarter of $145 million, plus or minus $10 million, with expected gross margins of 46.5%. Non-GAAP operating expenses are anticipated to be $68 million, with a GAAP EPS loss of $0.09 and a non-GAAP EPS gain of $0.05 per share. Additionally, the company completed a share repurchase program, buying over 500,000 shares for $21.3 million. The call highlighted the impact of macroeconomic uncertainties and trade dynamics on their market outlook, with particular emphasis on hesitations in Southeast Asia's automotive and industrial sectors. However, they noted utilization improvements in Taiwan and China, which could potentially lead to capacity additions as conditions stabilize.Kulicke & Soffa Corporate Events
Business Operations and StrategyFinancial Disclosures
Kulicke & Soffa Ceases EA Equipment Business
Negative
Mar 31, 2025
Kulicke & Soffa announced the cessation of its EA equipment business, which is expected to result in significant financial changes. The company anticipates a reduction in revenue by $25 million to $29 million, a decrease in gross profit by $7 million to $11 million, and a drop in operating expenses by $24 million to $28 million, impacting its long-term financial model.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.