NasdaqGS:KLIC

Stock Analysis Report

Kulicke and Soffa Industries

Executive Summary

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools to assemble semiconductor devices.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Kulicke and Soffa Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

KLIC

0.9%

US Semiconductor

0.6%

US Market


1 Year Return

10.4%

KLIC

18.5%

US Semiconductor

6.2%

US Market

Return vs Industry: KLIC underperformed the US Semiconductor industry which returned 18.5% over the past year.

Return vs Market: KLIC exceeded the US Market which returned 6.2% over the past year.


Share holder returns

KLICIndustryMarket
7 Day-1.3%0.9%0.6%
30 Day2.7%-1.9%-1.8%
90 Day8.2%4.2%-2.0%
1 Year12.9%10.4%20.8%18.5%8.6%6.2%
3 Year86.6%80.7%79.8%69.2%45.7%36.3%
5 Year90.4%84.4%146.4%120.9%68.5%50.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kulicke and Soffa Industries undervalued based on future cash flows and its price relative to the stock market?

44.57x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: KLIC ($23.45) is trading above our estimate of fair value ($17.31)

Significantly Undervalued: KLIC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: KLIC is poor value based on its PE Ratio (44.6x) compared to the Semiconductor industry average (27.9x).

PE vs Market: KLIC is poor value based on its PE Ratio (44.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: KLIC is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

PB vs Industry: KLIC is good value based on its PB Ratio (1.9x) compared to the US Semiconductor industry average (2.6x).


Next Steps

Future Growth

How is Kulicke and Soffa Industries expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

49.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: KLIC's forecast earnings growth (49.8% per year) is above the savings rate (2.7%).

Earnings vs Market: KLIC's earnings (49.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KLIC's revenue (16% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: KLIC's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if KLIC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kulicke and Soffa Industries performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KLIC's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: KLIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KLIC had negative earnings growth (-48.7%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: KLIC's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: KLIC's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: KLIC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kulicke and Soffa Industries's financial position?


Financial Position Analysis

Short Term Liabilities: KLIC's short term assets ($918.4M) exceeds its short term liabilities ($189.3M)

Long Term Liabilities: KLIC's short term assets ($918.4M) exceeds its long term liabilities ($135.9M)


Debt to Equity History and Analysis

Debt Level: KLIC's debt to equity ratio (10.9%) is considered satisfactory

Reducing Debt: KLIC's debt to equity ratio has increased from 2.6% to 10.9% over the past 5 years.

Debt Coverage: KLIC's debt is well covered by operating cash flow (131.4%).

Interest Coverage: KLIC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: KLIC has a low level of unsold assets or inventory.

Debt Coverage by Assets: KLIC's debt is covered by short term assets (assets are 10.692580x debt).


Next Steps

Dividend

What is Kulicke and Soffa Industries's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: KLIC's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: KLIC's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Too early to tell whether KLIC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if KLIC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.2%), KLIC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Kulicke and Soffa Industries's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Fusen Chen (60yo)

3yrs

Tenure

US$5,080,321

Compensation

Dr. Fusen Ernie Chen, Ph.D., has been the President and Chief Executive Officer of Kulicke and Soffa Industries, Inc. since October 31, 2016. Dr. Chen served as the Chief Executive Officer and President of ...


CEO Compensation Analysis

Compensation vs. Market: Fusen's total compensation ($USD5.08M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: Insufficient data to compare Fusen's compensation with company performance.


Management Age and Tenure

2.9yrs

Average Tenure

58yo

Average Age

Experienced Management: KLIC's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

60yo

Average Age

Experienced Board: KLIC's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$193,68822 May 19
Peter Kong
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$19.37
BuyUS$102,56329 Nov 18
Peter Kong
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$20.51

Ownership Breakdown


Management Team

  • Fusen Chen (60yo)

    President

    • Tenure: 3yrs
    • Compensation: US$5.08m
  • Lester Wong (53yo)

    Senior VP of Legal Affairs

    • Tenure: 1.9yrs
    • Compensation: US$1.31m
  • Nelson Wong (58yo)

    Senior Vice President of Ball Bonder & Wedge Bonder Business Units

    • Tenure: 2yrs
  • Joyce Lim (56yo)

    Senior Vice President of Global Supply Chain

    • Tenure: 0.9yrs
  • Lisa Lim

    Vice President of Global Human Resources

    • Tenure: 7.8yrs
  • Irene Lee (59yo)

    Senior VP of Global Operations & Chief Quality Officer

    • Tenure: 5.5yrs
    • Compensation: US$1.33m
  • Chan Chong (50yo)

    Senior Vice President of Advanced Packaging & EA/APMR Business Units

    • Tenure: 2.8yrs
    • Compensation: US$1.91m
  • Dennis Ang

    Global Head of IT and Senior Director

    • Tenure: 5.2yrs
  • Joseph Elgindy

    Director of Investor Relations & Strategic Planning

    • Tenure: 9.7yrs
  • Huy Hoang (58yo)

    Executive Vice President

    • Tenure: 2.5yrs
    • Compensation: US$1.14m

Board Members

  • Garrett Pierce (74yo)

    Chairman of the Board

    • Tenure: 5.1yrs
    • Compensation: US$242.45k
  • Gregory Milzcik (59yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$210.57k
  • Brian Bachman (74yo)

    Director

    • Tenure: 16yrs
    • Compensation: US$201.20k
  • Chin-Hu Lim (60yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$192.45k
  • Fusen Chen (60yo)

    President

    • Tenure: 3yrs
    • Compensation: US$5.08m
  • Peter Kong (68yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$192.45k
  • Mui Yeo (60yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$206.20k

Company Information

Kulicke and Soffa Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kulicke and Soffa Industries, Inc.
  • Ticker: KLIC
  • Exchange: NasdaqGS
  • Founded: 1951
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$1.487b
  • Shares outstanding: 63.41m
  • Website: https://www.kns.com

Number of Employees


Location

  • Kulicke and Soffa Industries, Inc.
  • No. 01-01 K&S Corporate Headquarters
  • 23A Serangoon North Avenue 5
  • Singapore
  • 554369
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KLICNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1970
KU1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1970

Biography

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools to assemble semiconductor devices. It operates in two segments, Capital Equipment, and Aftermarket Products a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 23:55
End of Day Share Price2019/10/11 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.

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