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Kulicke & Soffa Industries, Inc. (KLIC)
:KLIC
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Kulicke & Soffa
(NASDAQ:KLIC)
Rating:65Neutral
Price Target:
$38.00
▲(3.37%Upside)
Positive Factors
Operational Efficiency
The winding down of the Electronics Assembly business should improve overall margins and reduce operating expenses.
Product Development
There is enthusiasm about Kulicke & Soffa's TCB opportunity as TSMC tests it for AI applications.
Revenue Growth
Fluxless Thermo-Compression traction is progressing well, with management expecting significant revenue growth as the solution is adopted by leading edge customers.
Negative Factors
Financial Performance
Kulicke & Soffa reported results that missed guidance and projected a weaker outlook.
Market Conditions
Tariff uncertainties are causing customers in Taiwan and China to adopt a 'wait-and-see' approach, affecting demand.
Market Demand
The decline in auto and industrial demand, especially in Southeast Asia, is impacting the company's performance.
Kulicke & Soffa (KLIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.94B
Dividend Yield2.23%
Average Volume (3M)583.95K
Price to Earnings (P/E)101.7
Beta (1Y)1.47
Revenue Growth-6.17%
EPS GrowthN/A
CountryUS
Employees2,677
SectorTechnology
Sector Strength87
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.52
Shares Outstanding52,769,350
10 Day Avg. Volume485,646
30 Day Avg. Volume583,951
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.94
Price to Sales (P/S)0.00
P/FCF Ratio6.31
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit6.02
Enterprise Value/Ebitda-1.11K
Forecast
1Y Price Target
$40.00Price Target Upside8.81% 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 assembly equipment and tools. The company's key revenue streams include the sale of wire bonding and wedge bonding machines, which are crucial in the semiconductor manufacturing process. Additionally, Kulicke & Soffa provides advanced packaging solutions and electronic assembly products, further diversifying its revenue base. The company also offers aftermarket services, including spare parts and equipment maintenance, which contribute to its recurring revenue. Strategic partnerships and collaborations with leading semiconductor manufacturers enable Kulicke & Soffa to maintain a competitive edge and drive sales growth in the rapidly evolving electronics industry.
Kulicke & Soffa Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q2-2025)
| % Change Since: 16.51%|
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 Financial Statement Overview
Summary
Kulicke & Soffa's financial performance shows mixed results. The income statement reflects challenges with declining revenue and profitability, but the balance sheet is strong with low leverage and significant cash reserves. Cash flow is positive, though volatile, suggesting efficient cash management but concerns about sustainability given recent declines.Income Statement
Kulicke & Soffa's income statement reflects a challenging period with declining revenue and profitability. The TTM data shows a gross profit margin of 43.39% and a net profit margin of 3.11%, indicating a significant drop compared to previous years. Revenue and profit margins have decreased, driven by industry headwinds. Despite this, the company has managed to maintain a positive EBIT and EBITDA margin, showing operational resilience.65
Positive
Balance Sheet
The balance sheet remains robust, with a strong equity position and low leverage. The debt-to-equity ratio stands at 0.04, and the equity ratio is 75.49%, indicating financial stability. However, the ROE has decreased due to lower net income, but the company still maintains a healthy balance sheet with significant cash reserves.75
Positive
Cash Flow
Cash flow analysis reveals a mixed picture. Operating cash flow is strong relative to net income, suggesting efficient cash management. The free cash flow growth rate has been volatile, but the company maintains a positive free cash flow to net income ratio. There are concerns about the sustainability of cash flows given the recent declines in net income.70
Positive
| Breakdown | TTM | Sep 2024 | Sep 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 691.08M | 706.23M | 742.49M | 1.50B | 1.52B | 623.18M |
| Gross Profit | 299.86M | 268.75M | 358.65M | 748.32M | 696.99M | 297.98M |
| EBITDA | 52.21M | -33.53M | 89.83M | 492.71M | 432.26M | 78.25M |
| Net Income | 21.50M | -69.01M | 57.15M | 433.55M | 367.16M | 52.30M |
Balance Sheet | ||||||
| Total Assets | 1.15B | 1.24B | 1.50B | 1.59B | 1.60B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 581.52M | 577.15M | 759.40M | 775.54M | 739.79M | 530.13M |
| Total Debt | 36.28M | 40.96M | 48.41M | 41.69M | 42.99M | 24.23M |
| Total Liabilities | 281.10M | 296.15M | 325.22M | 393.95M | 506.39M | 296.57M |
| Stockholders Equity | 864.17M | 944.01M | 1.17B | 1.19B | 1.10B | 757.99M |
Cash Flow | ||||||
| Free Cash Flow | 139.99M | 14.89M | 129.00M | 367.20M | 277.26M | 82.69M |
| Operating Cash Flow | 157.29M | 31.04M | 173.40M | 390.19M | 300.03M | 94.41M |
| Investing Cash Flow | -37.77M | -138.50M | -91.34M | 133.80M | -81.71M | -125.96M |
| Financing Cash Flow | -192.26M | -196.10M | -111.88M | -321.19M | -44.26M | -145.81M |
Kulicke & Soffa Technical Analysis
Positive
36.76
Price Trends
33.30
Positive
34.30
Positive
39.83
Negative
Market Momentum
0.82
Negative
65.41
Neutral
87.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLIC, the sentiment is Positive. The current price of 36.76 is above the 20-day moving average (MA) of 34.61, above the 50-day MA of 33.30, and below the 200-day MA of 39.83, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.35B | 13.38 | 18.45% | ― | -15.14% | -28.30% | |
74 Outperform | $2.79B | 52.29 | 5.74% | ― | 15.33% | -47.04% | |
74 Outperform | $1.65B | 18.80 | 9.79% | 3.93% | 0.61% | 80.97% | |
65 Neutral | $1.94B | 101.69 | 2.29% | 2.23% | -6.17% | ― | |
63 Neutral | $954.24M | ― | -9.87% | ― | -30.75% | -3668.44% | |
55 Neutral | $2.33B | 26.74 | -3.14% | 2.32% | -11.31% | -127.88% | |
49 Neutral | C$2.96B | 2.13 | -80.92% | 2.67% | 12.55% | -24.47% |
* Technology Sector Average
Performance Comparison
KLIC
Kulicke & Soffa
36.76
-11.63
-24.03%
ACLS
Axcelis Technologies
73.04
-70.59
-49.15%
COHU
Cohu
20.52
-13.69
-40.02%
FORM
Formfactor
36.18
-25.76
-41.59%
HIMX
Himax Technologies
9.42
1.66
21.39%
VSH
Vishay Intertechnology
17.21
-4.78
-21.74%
Kulicke & Soffa Corporate Events
Business Operations and Strategy
Kulicke & Soffa Ends Facility Agreements with MUFG
Neutral
Jun 9, 2025
On June 6, 2025, Kulicke & Soffa Industries, Inc. and its subsidiary terminated their Facility Agreements with MUFG Bank, Ltd., Singapore Branch, which included an overdraft facility of up to $150 million for general corporate purposes. The termination of these agreements had no outstanding amounts or early termination penalties, indicating a stable financial position for the company.
The most recent analyst rating on (KLIC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Kulicke & Soffa stock, see the KLIC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.