Cohu (COHU) AI Stock Analysis

• Market Cap: $824.49M
• Dividend Yield: N/A
• Average Volume (3M): 596.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -30.75%
• EPS Growth: -3668.44%
• Country: US
• Employees: 2,986
• Sector: Technology
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 46,502,690
• 10 Day Avg. Volume: 424,147
• 30 Day Avg. Volume: 596,323
• PEG Ratio: 0.36
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -62.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $24.75
• Price Target Upside: 39.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Cohu's overall score reflects its financial pressures and operational challenges despite a strong liquidity and equity position. Technical indicators show moderate strength, and while the earnings call indicates potential growth, restructuring costs present a risk. The negative valuation metrics further weigh down the stock's attractiveness.

Positive Factors

Market Expansion

Growth is driven by the initial contribution of HBM inspection revenue and an uptick in handler kits revenue for mobile processors.

Revenue Growth

Cohu reported a beat-and-raise quarter and is now expected to break even in 2Q25.

Strategic Restructuring

COHU announced it has launched a strategic restructuring program to consolidate certain U.S. and Europe operations to Asia and to cut 7% of the workforce in an effort to improve its cost structure.

Negative Factors

Inventory Challenges

In 4Q24, management highlighted an additional $2.1MM inventory reserve charge, causing both the top and bottom lines to come in under consensus estimates.

Market Demand

Cohu reported both 4Q24 results and 1Q25 guidance below the Street's estimates, both of which can be attributed to the weak end-market demand environment, as customers continue to digest excess inventory.

Tariff Uncertainty

Uncertainty of how tariffs may impact demand puts risk on the trajectory of C2H25 which Cohu has limited visibility given the generally short lead times of its consumable products.

Cohu Business Overview & Revenue Model

Company Description

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor and electronics manufacturers, and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. Cohu, Inc. was incorporated in 1947 and is headquartered in Poway, California.

How the Company Makes Money

Cohu makes money by offering a comprehensive suite of testing and inspection solutions tailored to the semiconductor industry. The company's revenue model is primarily based on the sale of its equipment, which includes test handlers, burn-in systems, and thermal solutions. In addition to direct equipment sales, Cohu generates recurring revenue through the provision of spare parts, services, and support contracts. The company's financial performance is influenced by its ability to innovate and maintain technological leadership in its product offerings, as well as by its strategic partnerships with semiconductor manufacturers and test subcontractors. Global demand for semiconductors, industry trends, and technological advancements are significant factors that contribute to Cohu's earnings.

Cohu Financial Statement Overview

Summary

Cohu's financial performance shows challenges with a declining income statement, despite a strong balance sheet and moderate cash flow. The income statement is weak with declining revenue and negative profitability, while the balance sheet indicates a strong equity position and robust liquidity. Cash flow is moderate, with improvements in operating cash flow but negative free cash flow posing concerns.

Income Statement

Cohu's income statement reveals significant challenges with declining revenue and negative profitability. The TTM revenue of $390.96M decreased from $401.78M in the prior year. The net profit margin turned negative, with net losses reported in recent periods. This indicates a downturn in operational efficiency and profitability. Additionally, EBIT and EBITDA margins are negative, highlighting operational struggles.

Balance Sheet

Cohu's balance sheet shows a strong equity position with a high equity ratio of approximately 88.9% TTM. The debt-to-equity ratio is low at 0.03 TTM, indicating conservative leverage. However, the declining net income impacts the return on equity, which is negative. The company maintains a substantial cash position, indicating robust liquidity.

Cash Flow

Cash flow analysis indicates moderate performance. While operating cash flow has improved in the TTM, free cash flow remains negative due to capital expenditures. The operating cash flow to net income ratio is high, suggesting better cash generation relative to earnings. However, the negative free cash flow growth rate presents a concern for long-term cash sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
390.96M	401.78M	636.32M	812.77M	887.21M	636.01M
	Gross Profit
153.79M	180.29M	302.81M	383.33M	386.96M	271.78M
	EBIT
-81.38M	-71.67M	43.27M	125.56M	132.87M	17.86M
	EBITDA
-35.64M	-11.84M	98.94M	178.97M	180.64M	74.11M
	Net Income Common Stockholders
-85.99M	-69.82M	28.16M	96.85M	167.32M	-13.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
200.81M	262.09M	335.70M	385.58M	379.90M	170.03M
	Total Assets
975.54M	999.41M	1.15B	1.23B	1.26B	1.10B
	Total Debt
26.89M	18.69M	58.94M	98.18M	139.83M	345.73M
	Net Debt
-124.98M	-187.71M	-186.59M	-144.16M	-150.37M	196.37M
	Total Liabilities
147.82M	142.52M	200.18M	298.57M	376.54M	583.89M
	Stockholders Equity
827.72M	856.89M	950.17M	928.84M	882.50M	511.62M
Cash Flow		Free Cash Flow
-11.71M	-7.86M	85.42M	98.09M	85.73M	31.07M
	Operating Cash Flow
6.56M	2.78M	101.47M	112.86M	97.73M	49.73M
	Investing Cash Flow
-18.90M	21.92M	-30.21M	-67.87M	39.89M	-18.36M
	Financing Cash Flow
-16.76M	-59.03M	-68.14M	-91.07M	6.53M	-38.07M

Cohu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHU, the sentiment is Positive. The current price of 17.73 is above the 20-day moving average (MA) of 16.68, above the 50-day MA of 15.96, and below the 200-day MA of 22.59, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 76.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHU.

Cohu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMOS	71 Outperform	$675.86M	19.53	4.64%	4.41%	-0.41%	-47.27%
AOSL	66 Neutral	$688.65M	―	-2.55%	―	3.57%	-134.36%
COHU	62 Neutral	$824.49M	―	-9.87%	―	-30.75%	-3668.44%
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
UCTT	59 Neutral	$968.00M	34.70	3.30%	―	20.20%	―
ICHR	52 Neutral	$624.39M	―	-2.35%	―	13.41%	72.56%
AAOI	48 Neutral	$1.04B	―	-68.45%	―	50.30%	-111.11%

Cohu Corporate Events

Cohu Stockholders Approve Key Proposals at Annual Meeting

Cohu held its 2025 Annual Meeting of Stockholders on May 16, 2025, where stockholders voted on three key proposals. The election of Class 3 directors resulted in the re-election of Steven J. Bilodeau, James A. Donahue, and Andreas W. Mattes. Additionally, the advisory vote on executive compensation was approved, and Ernst & Young LLP’s appointment as the independent registered public accounting firm for fiscal year 2025 was ratified.

The most recent analyst rating on (COHU) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Cohu stock, see the COHU Stock Forecast page.

Spark’s Take on COHU Stock

According to Spark, TipRanks’ AI Analyst, COHU is a Neutral.

Cohu’s overall score reflects its financial pressures and operational challenges despite a strong liquidity and equity position. Technical indicators show moderate strength, and while the earnings call indicates potential growth, restructuring costs present a risk. The negative valuation metrics further weigh down the stock’s attractiveness.

To see Spark’s full report on COHU stock, click here.

Cohu Announces Strategic Restructuring Amid Industry Downturn

On February 19, 2025, Cohu, Inc. initiated a strategic restructuring program aimed at repositioning its operations and improving its cost structure amid a downturn in the semiconductor test and inspection equipment industry. The restructuring involves consolidating operations in Switzerland and Germany to lower-cost locations, reducing headcount in the U.S. and Asia, and negotiating with trade unions. The company expects to incur pretax charges of $6.1 million to $7.2 million throughout fiscal 2025, impacting its Semiconductor Test & Inspection segment.