One-glance verdict
Overvalued
$47.21 our estimate vs market $114.19
Wall Street consensus: $100.00 (111.8% higher than our fair-value estimate)
142% above our estimate, beyond the bull case
Fundamentals snapshot
Kulicke and Soffa Industries, Inc.
KLIC · NMS · Technology · Semiconductor Equipment & Materials
Current price
$114.19
52-week range
$31.32 - $115.15
Market cap
$5.98B
Balance sheet
Healthy
-293.99x Concerning
Net cash $448.08M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 17.4% last year.
- Reward Returns 6.4% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 31.4% to 15.9% over 3 years.
What this company does
Kulicke and Soffa Industries, Inc.
Kulicke and Soffa manufactures the essential machinery and tools that other companies need to assemble semiconductors, which are the tiny electronic brains found in devices like smartphones and cars. The company earns money primarily by selling this expensive equipment, but also profits from selling the necessary parts and providing services for those machines after the sale. Because their products are a critical part of the electronics supply chain (the entire network of businesses involved in creating and distributing a product), the company's performance often reflects the overall demand for new technology worldwide.
How the company got here
Kulicke and Soffa, started in 1951 by two engineers in a small Philadelphia shop, became a key player in the electronics revolution. They invented the first 'wire bonder,' a machine that automated the delicate process of connecting tiny wires to semiconductor chips, which was crucial for mass-producing electronics. Over the years, the company continued to innovate, creating faster and more precise machines that became industry standards. As the chip industry moved to Asia, Kulicke and Soffa followed, establishing a major presence in Singapore, which is now its headquarters.
What it actually does
Think of every electronic device you own—your phone, your car, your computer. Inside are tiny electronic chips that need to be connected to work. Kulicke and Soffa builds the highly specialized, robotic machines that make these microscopic connections. These machines precisely place chips onto circuit boards and then connect them with incredibly thin wires or through other advanced methods. The company also sells the tiny tools and parts these machines use up (consumables) and provides services to keep the machines running smoothly.
Ball Bonding Equipment
This is the company's traditional and largest business, making machines for a process called ball bonding. This technique uses heat, pressure, and ultrasonic energy to melt the tip of a very thin gold or copper wire into a tiny ball, which is then attached to the semiconductor chip to create an electrical connection. These machines are the workhorses for assembling a huge variety of chips used in everything from computers to smartphones. Customers are mainly the large factories that assemble and test chips for other companies (known as outsourced semiconductor assembly and test providers, or OSATs) and companies that manufacture their own devices.
Wedge Bonding Equipment
This segment produces machines that use a different connection method called wedge bonding, which is especially important for electronics that handle a lot of power, like those in electric vehicles and industrial machinery. Instead of a ball, these machines use a wedge-shaped tool to press the wire onto the chip and the package, creating a strong, reliable bond with aluminum or copper wires and ribbons. This part of the business serves the growing market for power semiconductors, which are critical components in managing electricity in modern cars and industrial systems.
Advanced Solutions
This is the company's high-growth area, focused on the newest and most complex ways to assemble chips. As electronics get smaller and more powerful, traditional wire connections are not always enough. This segment provides equipment for advanced techniques like 'thermo-compression bonding' (using heat and pressure to connect chips) and systems for assembling advanced displays and other complex electronic components. These solutions are critical for building the powerful chips needed for artificial intelligence (AI), high-performance computing, and advanced memory.
Aftermarket Products and Services (APS)
This part of the business supports customers after they've bought a machine. It provides all the necessary spare parts, tools that wear out with use (like the tiny nozzles, or 'capillaries,' that guide the wires), and maintenance services to keep the equipment running efficiently. This creates a steady, recurring stream of revenue (income that is predictable and likely to continue in the future) because customers constantly need to replace parts and service their machines to keep their factories productive. This segment is important for building long-term customer relationships and provides a more stable income source compared to the cyclical nature of equipment sales.
What management is betting on now
The company is heavily focused on growing its 'Advanced Solutions' business to meet the demands of the most powerful new technologies. This includes investing in equipment for things like artificial intelligence and high-performance computing, which require more complex chip assembly methods than traditional wire bonding. Management is also targeting the rapidly growing market for electric vehicles and other power electronics, where its wedge bonding technology is essential. By expanding into these higher-growth areas, the company aims to become a key partner for manufacturers building the next generation of electronic devices.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$24.21M
FY2024 Q4
$29.15M
FY2025 Q1
$8.70M
FY2025 Q2
$77.92M
FY2025 Q3
$5.29M
FY2025 Q4
$4.45M
FY2026 Q1
$-11.61M
FY2026 Q2
$6.19M
Revenue
$242.62M
Net income
$35.15M
Diluted EPS
0.66
Operating cash flow
$10.27M
Free cash flow
$6.19M
Fetching…
Sources
Revenue
$199.62M
Net income
$16.80M
Diluted EPS
0.32
Operating cash flow
$-8.93M
Free cash flow
$-11.61M
Fetching…
Sources
Revenue
$177.56M
Net income
$6.38M
Diluted EPS
0.14
Operating cash flow
$7.41M
Free cash flow
$4.45M
Fetching…
Sources
Revenue
$148.41M
Net income
$-3.29M
Diluted EPS
-0.06
Operating cash flow
$7.38M
Free cash flow
$5.29M
Fetching…
Sources
Revenue
$161.99M
Net income
$-84.52M
Diluted EPS
-1.59
Operating cash flow
$79.88M
Free cash flow
$77.92M
Fetching…
Sources
Revenue
$166.12M
Net income
$81.64M
Diluted EPS
1.51
Operating cash flow
$18.90M
Free cash flow
$8.70M
Fetching…
Sources
Revenue
$181.32M
Net income
$12.12M
Diluted EPS
0.21
Operating cash flow
$31.62M
Free cash flow
$29.15M
Fetching…
Sources
Revenue
$181.65M
Net income
$12.26M
Diluted EPS
0.22
Operating cash flow
$26.90M
Free cash flow
$24.21M
Fetching…
Sources
Is it cheap or expensive?
Fair value $47.21 vs current price $114.19
Wall Street consensus is the average analyst price target: $100.00 (111.8% higher than our fair-value estimate).
Our most-likely fair value is $47.21 a share — about 58.7% below today's price of $114.19, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $448.1M - more cash than debt. Interest coverage -294.0x.
Net debt
$-448.08M
Interest coverage
-293.99x
Kulicke and Soffa Industries, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
KLIC
BASELINE
Kulicke and Soffa Industries, Inc.
Total debt $39.79M Interest coverage -293.99x This is the baseline the peer rows are being compared against.
Total debt $601.03M Interest coverage 6.90x This peer still has a real interest-payment cushion, while KLIC does not.
Total debt $487.81M Interest coverage 77.42x This peer still has a real interest-payment cushion, while KLIC does not.
Total debt $330.08M Interest coverage -29.03x Neither company has much profit cushion over interest right now.
Total debt $31.89M Interest coverage 115.35x This peer still has a real interest-payment cushion, while KLIC does not.
Total debt $3.76B Interest coverage 4.62x This peer still has a real interest-payment cushion, while KLIC does not.
What you should know
The case for and against KLIC
3 Rewards
1 Risk
Rewards
-
Revenue grew 17.4% last year.
-
Returns 6.4% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 31.4% to 15.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
110.86x
Forward P/E
26.95x
P/B
6.97x
P/S
7.78x
EV/EBITDA
46.14x
PEG ratio
2.38x
Profitability
How much profit each dollar creates
Gross margin
53.6%
Operating margin
15.9%
Net margin
7.2%
ROE
6.4%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
4.21x
Quick ratio
3.18x
Total debt
$39.79M
Total cash
$487.86M
Growth
How the business has been compounding
Revenue TTM
$768.22M
Revenue 5Y CAGR
-19.0%
EPS TTM
1.03
EPS 5Y CAGR
-91.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$16.12M
Free CF TTM
$96.36M
FCF margin
12.5%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
79.3%
Last ex-div date
2026-06-18