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

5.6%

KLIC

-2.5%

US Semiconductor

-0.6%

US Market


1 Year Return

-4.5%

KLIC

7.5%

US Semiconductor

0.7%

US Market

KLIC underperformed the Semiconductor industry which returned 7.5% over the past year.

KLIC underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

KLICIndustryMarket
7 Day5.6%-2.5%-0.6%
30 Day18.2%4.1%2.9%
90 Day7.8%9.9%1.3%
1 Year-2.3%-4.5%9.6%7.5%2.9%0.7%
3 Year93.1%87.9%79.9%69.3%44.6%35.2%
5 Year73.7%69.0%119.3%97.0%61.9%44.2%

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

1 week ago | Simply Wall St

Should You Investigate Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) At US$22.83?

Valuation

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

45.96x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Kulicke and Soffa Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Kulicke and Soffa Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Kulicke and Soffa Industries is overvalued based on earnings compared to the US Semiconductor industry average.

Kulicke and Soffa Industries is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Kulicke and Soffa Industries is good value based on expected growth next year.


Price Based on Value of Assets

Kulicke and Soffa Industries is good value based on assets compared to the US Semiconductor industry average.


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

Kulicke and Soffa Industries's revenue is expected to grow by 16% yearly, however this is not considered high growth (20% yearly).

Kulicke and Soffa Industries's earnings are expected to grow significantly at over 20% yearly.

Kulicke and Soffa Industries's revenue growth is expected to exceed the United States of America market average.

Kulicke and Soffa Industries's earnings growth is expected to exceed the United States of America market average.

Kulicke and Soffa Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Kulicke and Soffa Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Kulicke and Soffa Industries's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Kulicke and Soffa Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Kulicke and Soffa Industries's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

Kulicke and Soffa Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kulicke and Soffa Industries used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Kulicke and Soffa Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kulicke and Soffa Industries's financial position?


Financial Position Analysis

Kulicke and Soffa Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kulicke and Soffa Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Kulicke and Soffa Industries's level of debt (10.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (2.6% vs 10.9% today).

Debt is well covered by operating cash flow (131.4%, greater than 20% of total debt).

Kulicke and Soffa Industries earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 10.7x debt.


Next Steps

Dividend

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

1.99%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Kulicke and Soffa Industries before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Kulicke and Soffa Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Kulicke and Soffa Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

It is too early to tell whether Kulicke and Soffa Industries has stable dividend payments.

Kulicke and Soffa Industries only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

2.8yrs

Average management tenure


CEO

Fusen Chen (60yo)

2.9yrs

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

Fusen's remuneration is about average for companies of similar size in United States of America.

Insufficient data for Fusen to compare compensation growth.


Management Age and Tenure

2.8yrs

Average Tenure

58yo

Average Age

The tenure for the Kulicke and Soffa Industries management team is about average.


Board Age and Tenure

5.9yrs

Average Tenure

60yo

Average Age

The tenure for the Kulicke and Soffa Industries board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 2.9yrs
    • Compensation: US$5.08m
  • Lester Wong (53yo)

    Senior VP of Legal Affairs

    • Tenure: 1.8yrs
    • Compensation: US$1.31m
  • Nelson Wong (58yo)

    Senior Vice President of Ball Bonder & Wedge Bonder Business Units

    • Tenure: 1.9yrs
  • Joyce Lim (56yo)

    Senior Vice President of Global Supply Chain

    • Tenure: 0.8yrs
  • Lisa Lim

    Vice President of Global Human Resources

    • Tenure: 7.7yrs
  • Irene Lee (59yo)

    Senior VP of Global Operations & Chief Quality Officer

    • Tenure: 5.4yrs
    • Compensation: US$1.33m
  • Chan Chong (50yo)

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

    • Tenure: 2.7yrs
    • Compensation: US$1.91m
  • Dennis Ang

    Global Head of IT and Senior Director

    • Tenure: 5.1yrs
  • Joseph Elgindy

    Director of Investor Relations & Strategic Planning

    • Tenure: 9.6yrs
  • Huy Hoang (58yo)

    Executive Vice President

    • Tenure: 2.4yrs
    • Compensation: US$1.14m

Board Members

  • Garrett Pierce (74yo)

    Chairman of the Board

    • Tenure: 5yrs
    • Compensation: US$242.45k
  • Gregory Milzcik (59yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$210.57k
  • Brian Bachman (74yo)

    Director

    • Tenure: 15.9yrs
    • Compensation: US$201.20k
  • Chin-Hu Lim (60yo)

    Director

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

    President

    • Tenure: 2.9yrs
    • Compensation: US$5.08m
  • Peter Kong (68yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$192.45k
  • Mui Yeo (60yo)

    Director

    • Tenure: 6.9yrs
    • 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$1.533b
  • 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 Analysis2019/09/21 23:35
End of Day Share Price2019/09/20 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.