PDF Solutions Inc. Common Stock (PDFS)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

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

At $47.62 on 2026-10-13, PDF Solutions is a $2.0B market-cap specialist selling Exensio software, physical IP, measurement hardware, and services into the semiconductor manufacturing workflow. The niche may be sticky because the business description points to proprietary software and deep process data, but the financials do not yet show a wide moat. FairStock calculates ROE of 3.27% and ROCE of 3.32%, far below what I want from a high-quality compounder. The balance sheet is a positive: debt/equity is 0.19, Altman Z-Score 8.56, and Piotroski 5/9, so near-term solvency is not the issue. The problem is price and cash. FairStock's P/E is 190.48, P/B 5.36, EV/EBITDA 55.10, and the Graham Number is $7.07, leaving a margin of safety of -573.55%. Trailing free cash flow is -$2.0M, a -0.1% FCF yield, so reported earnings are not yet converting into owner cash. Growth is real: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $61.5M and net income $4.3M, versus $51.7M and $1.1M in fiscal Q2 2025. Fiscal Q1 2026, the quarter ended 2026-03-31, also showed $60.1M revenue and $4.8M net income. But fiscal year 2025 still produced a net loss of $640,000, or EPS -$0.02, after fiscal year 2024 net income of $4.1M. That is why FairStock's Lynch category is TURNAROUND: loss in the latest year after earlier profits. FairStock Score is 31/100. I see improving momentum, but not enough margin of safety.

In plain English: PDF Solutions sells software and tools that help chipmakers design and make semiconductors. The business is growing sales and has had two profitable recent quarters, but it lost money in its latest full year and is not generating positive cash flow. At the recent price near $47.62, the shares look expensive compared with those numbers.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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