COHUCAUTIOUS

COHU Return on Equity (ROE) Analysis

-7.0%

Higher than 26% of Technology sector peers

Updated 71h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how effectively a company generates profit from shareholders' equity; a negative ROE means the company is losing money relative to its equity base.

Sector Performance

26th percentile

COHU

-7.0%

Sector Median

6.9%

Sector Avg

-3.3%

Prior Period

-9.5%(May 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from shareholders' equity; a negative ROE means the company is losing money relative to its equity base.

COHU’s current ROE of -7.0% places it far below the sector median of 8.2%, at the 26th percentile among its Technology peers — meaning over 70% of competitors achieve higher returns. The year-over-year change is not available, but the quarter-over-quarter change shows a +26.3% improvement, moving from -9.5% to -7.0%; however, an 8-quarter trend direction is also not available. The combination of a still-negative ROE with a near-term improvement suggests that while losses are narrowing, the underlying profitability remains weak relative to peers. This metric supports the overall CAUTIOUS verdict because the negative ROE and poor sector standing indicate elevated risk and limited current return generation.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about COHU?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does COHU's Return on Equity (ROE) compare to its sector?

COHU's Return on Equity (ROE) of -7.0% compares to a Technology sector median of 6.9%, placing it in the 26th percentile.

Who are COHU's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: SMTC (-5.8%), LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.