NasdaqGS:COHU

Stock Analysis Report

Executive Summary

Cohu, Inc., through its subsidiaries, provides semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors, thermal sub-systems, semiconductor automated test equipment (ATE), and bare board printed circuit board (PCB) test systems for semiconductor and electronics manufacturers, and test subcontractors worldwide.

Rewards

Earnings are forecast to grow 145.86% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Cohu's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COHU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

COHU

4.8%

US Semiconductor

1.5%

US Market


1 Year Return

27.2%

COHU

41.1%

US Semiconductor

20.1%

US Market

Return vs Industry: COHU underperformed the US Semiconductor industry which returned 41.1% over the past year.

Return vs Market: COHU exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

COHUIndustryMarket
7 Day1.0%4.8%1.5%
30 Day-5.7%4.3%1.4%
90 Day26.2%13.6%8.7%
1 Year29.1%27.2%43.8%41.1%22.7%20.1%
3 Year56.8%50.8%95.7%85.1%50.1%40.5%
5 Year132.4%114.4%158.6%133.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is Cohu's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cohu undervalued compared to its fair value and its price relative to the market?

2.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: COHU ($23.71) is trading above our estimate of fair value ($16.46)

Significantly Below Fair Value: COHU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: COHU is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: COHU is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COHU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COHU is good value based on its PB Ratio (2x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Cohu forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

145.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COHU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: COHU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: COHU's is expected to become profitable in the next 3 years.

Revenue vs Market: COHU's revenue (48.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: COHU's revenue (48.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COHU's Return on Equity is forecast to be very high in 3 years time (593.6%).


Next Steps

Past Performance

How has Cohu performed over the past 5 years?

-53.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COHU is currently unprofitable.

Growing Profit Margin: COHU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COHU is unprofitable, and losses have increased over the past 5 years at a rate of -53.7% per year.

Accelerating Growth: Unable to compare COHU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COHU is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-27.7%).


Return on Equity

High ROE: COHU has a negative Return on Equity (-14.28%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cohu's financial position?


Financial Position Analysis

Short Term Liabilities: COHU's short term assets ($439.7M) exceed its short term liabilities ($148.9M).

Long Term Liabilities: COHU's short term assets ($439.7M) do not cover its long term liabilities ($445.8M).


Debt to Equity History and Analysis

Debt Level: COHU's debt to equity ratio (71.4%) is considered high.

Reducing Debt: Insufficient data to determine if COHU's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: COHU has a high level of physical assets or inventory.

Debt Coverage by Assets: COHU's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: COHU has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if COHU has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Cohu's current dividend yield, its reliability and sustainability?

1.01%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Cohu before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: COHU's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: COHU's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: COHU's dividends per share have been stable in the past 10 years.

Growing Dividend: COHU's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: COHU is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: COHU's dividends in 3 years are forecast to be thoroughly covered by earnings (10.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Luis Müller (49yo)

5.2yrs

Tenure

US$2,674,765

Compensation

Dr. Luis A. Müller has been the Chief Executive Officer and President of Cohu, Inc. since December 28, 2014. Prior to joining Cohu, Inc. Dr. Müller spent nine years at Teradyne, where he held various manag ...


CEO Compensation Analysis

Compensation vs Market: Luis's total compensation ($USD2.67M) is about average for companies of similar size in the US market ($USD2.47M).

Compensation vs Earnings: Luis's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Luis Müller
President5.2yrsUS$2.67m0.53% $5.1m
Jeffrey Jones
VP of Finance & CFO12.3yrsUS$1.19m0.27% $2.7m
Thomas Kampfer
VP of Corporate Development2.8yrsUS$804.35k0.0079% $77.6k
Christopher Bohrson
Senior VP & GM of Test Handler Group1.3yrsUS$742.60k0.17% $1.7m
Pascal Rondé
Senior Vice President of Global Customer Group1.3yrsUS$434.97k0.12% $1.2m
James McFarlane
President of Delta Design Kit Operations7yrsUS$743.53kno data
Samer Kabbani
President of Delta Design Systems17yrsUS$676.71kno data

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: COHU's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luis Müller
President5.2yrsUS$2.67m0.53% $5.1m
William Bendush
Independent Director8.2yrsUS$195.14k0.066% $649.0k
James Donahue
Non-Executive Chairman5.2yrsUS$216.92k0.85% $8.3m
Steven Bilodeau
Lead Independent Director1.8yrsUS$201.85k0.055% $534.1k
Andrew Caggia
Independent Director5.5yrsUS$177.62k0.048% $466.8k
Robert Ciardella
Independent Director16.6yrsUS$187.13k0.21% $2.1m
Jorge Titinger
Independent Director1.3yrsUS$83.63k0.038% $373.5k
Nina Richardson
Director0.3yrsno datano data
Lynne Camp
Director0.4yrsno datano data

5.2yrs

Average Tenure

61yo

Average Age

Experienced Board: COHU's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.7%.


Top Shareholders

Company Information

Cohu, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cohu, Inc.
  • Ticker: COHU
  • Exchange: NasdaqGS
  • Founded: 1947
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$978.426m
  • Shares outstanding: 41.27m
  • Website: https://www.cohu.com

Number of Employees


Location

  • Cohu, Inc.
  • 12367 Crosthwaite Circle
  • Poway
  • California
  • 92064
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COHUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
CU3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Cohu, Inc., through its subsidiaries, provides semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors, thermal sub-systems, semiconductor automated test equipment (ATE), and bare board printed circuit board (PCB) test systems for semiconductor and electronics manufacturers, and test subcontractors worldwide. It operates through two segments, Semiconductor Test and Inspection Equipment, and PCB Test Equipment. The company provides semiconductor ATE for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS for testing and inspection of packaged semiconductor devices; and thermal sub-systems that include temperature control of the integrated circuit during the testing process. It also offers bare board PCB test systems to test pre-assembly PCBs; flying probe and grid testers; interface products comprising test contactors and probe pins; spares and kits; and a range of device dedication kits that enable handlers to process various semiconductor packages. In addition, the company provides various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems. 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 founded in 1947 and is headquartered in Poway, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:34
End of Day Share Price2020/02/14 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.