Kulicke and Soffa Industries Inc. Common Stock (KLIC)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. Kulicke and Soffa sells capital equipment and consumables for semiconductor assembly. Demand is cyclical, and the aftermarket/service segment gives some recurring revenue, but this is not a wide-moat franchise. The balance sheet is a real strength: debt-to-equity is only 0.04, Altman Z-Score is 9.32, and ROE is 13.23% with ROCE of 9.00%. Still, those returns are modest for a technology equipment maker. The recent turnaround is notable. In fiscal Q3 2026, the quarter ended 2026-07-04, revenue was $330.4M, net income was $57.4M, and diluted EPS was $1.07. That compares with fiscal Q2 2026, the quarter ended 2026-04-04, when revenue was $242.6M, net income $35.1M, and diluted EPS $0.66, and fiscal Q1 2026, the quarter ended 2026-01-03, when revenue was $199.6M, net income $16.8M, and diluted EPS $0.32. The company had a loss of $3.3M in fiscal Q3 2025, the quarter ended 2025-06-28, and essentially breakeven FY2025 net income of $213,000 in FY2025, the fiscal year ended 2025-10-04. But valuation asks a lot. At the 2026-10-13 close of $88.54, the FairStock P/E is 40.43, P/B is 5.08, EV/EBITDA is 26.79, and FCF yield is only 0.9%. The Graham Number is $29.31, leaving a margin of safety of -202.08%. FairStock scores it 35/100 and labels it a TURNAROUND because it returned to profit after a loss within three years. I would want evidence that this recovery is durable and that free cash flow catches up with reported earnings before calling the price attractive. The business is healthier; the stock is not cheap on these numbers.

In plain English: Kulicke and Soffa makes equipment and services used to assemble semiconductors. The business has improved recently, with sales and profits rising from earlier lows, but it remains cyclical and the stock price looks high compared with its earnings and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-04) · fiscal Q2 2026 10-Q (period ended 2026-04-04) · fiscal Q1 2026 10-Q (period ended 2026-01-03) · fiscal Q3 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-10-04) · FY2024 10-K (period ended 2024-09-28) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer