Cohu, Inc.COHU
NASDAQ • Technology
$48.94
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+29.3% YoY
Gross Margin
40.4%
Health Score
6/10
D/E Ratio
0.46
Confidence
LOW
Business Snapshot
Cohu, Inc. supplies semiconductor test equipment and services to chipmakers and outsourced assembly and test providers. Its core offering includes test handlers, thermal subsystems, contactors, and inspection systems used in the final stages of chip manufacturing. The company operates in the cyclical semiconductor capital equipment market, where it competes with larger players such as Teradyne and Advantest while holding a niche position in test handling. With TTM revenue of $481.28 million, Cohu is a smaller-scale operator in an industry dominated by billion-dollar firms.
Financial Health
Gross margin improved sharply to 40.4% from 34.1% a year earlier, signalling better product mix or cost absorption, but net margin remains deeply negative at -11.5%, reflecting net losses over the trailing twelve months. The balance sheet is conservative, with a debt/equity ratio of 0.46x and a very strong current ratio of 6.88x, indicating ample liquidity and minimal refinancing risk...
Risk Assessment
- VALUATION — The price/sales ratio of 4.77x is well above what would be typical for a company with an -11.5% net margin, relying on strong future profit recovery.
- EARNINGS QUALITY — Only 2 of the last 4 quarterly earnings reports beat analyst estimates, providing limited confidence in management’s ability to forecast and hit targets.
- 52-WEEK POSITION — The current price of $48.94 sits just 6.7% below the 52‑week high of $52.43 and far above the midpoint of $34.45, suggesting much of the recent rally has already been priced in.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The FMP DCF of $6.38 implies severe overvaluation, while the Python DCF could not be computed at all due to data limitations, creating an unresolved fair-value gap.
- PROFITABILITY — A trailing net income of $-55.54 million shows the company is still in a loss-making phase, and the net margin of -11.5% is far from a sustainable earnings base....