KLIC Intrinsic Value Calculator – Kulicke and Soffa Industries Experiences Worsening Profit Margins and Declining Revenues
January 3, 2024
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Kulicke ($NASDAQ:KLIC) and Soffa Industries is a global leader in the design and manufacture of semiconductor packaging, interconnect and other assembly products for the semiconductor industry. Unfortunately, Kulicke and Soffa Industries has recently been struggling with declining profit margins and revenues. A combination of changing market conditions, increased competition, and rising costs have all contributed to a decrease in profits. This has been seen in their most recent financial report where earnings were down almost a quarter year-on-year. As a result of these losses, the company is taking proactive steps to reduce costs and develop new products to help improve their bottom line.
Additionally, they are working to improve their customer service and focus on innovation to help retain their customer base. It remains to be seen if these strategies will pay off in the long term, but investors remain hopeful that the company will be able to turn things around. Overall, it is clear that Kulicke and Soffa Industries is facing difficult times as they struggle with decreasing profits and revenues. Although the company is taking steps to improve their situation, only time will tell if they will be able to regain their position as a leader in the semiconductor packaging industry.
Earnings
Kulicke and Soffa Industries (K&S) recently released their earning report for the fiscal year 2023 Q4 ending September 30, 2022. The report revealed a concerning downward trend in their performance. Total revenue for the quarter was 286.31M USD, a decrease of 0.0% from the same period in the previous year.
Net income also decreased 0.0% to 64.9M USD. Over the past three years, total revenue has declined from 286.31M USD to 202.32M USD.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for KLIC. More…
| Total Revenues | Net Income | Net Margin |
| 742.49 | 57.15 | 10.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for KLIC. More…
| Operations | Investing | Financing |
| 173.4 | -91.34 | -111.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for KLIC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.5k | 325.22 | 20.8 |
Key Ratios Snapshot
Some of the financial key ratios for KLIC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 1.4% | 9.7% |
| FCF Margin | ROE | ROA |
| 17.4% | 3.9% | 3.0% |
Share Price
This was reflected in Tuesday’s stock price, which opened at $53.8 but closed at $52.8, representing a 3.6% dip from its previous closing price of 54.7. These figures demonstrate the challenges that K&S is currently facing and underscore the need for the organization to make strategic changes to improve its performance in the future. Live Quote…
Analysis – KLIC Intrinsic Value Calculator
At GoodWhale, we conducted an in-depth analysis of KULICKE AND SOFFA INDUSTRIES fundamentals and believe that the fair value of its share is around $57.9. This valuation was calculated using our proprietary Valuation Line, a comprehensive process that takes into account various factors such as the company’s financials, industry trends, and macroeconomic conditions. Currently, KULICKE AND SOFFA INDUSTRIES stock is trading at $52.8, representing a fair price that is undervalued by 8.8%. This makes it an attractive investment opportunity for those looking to capitalize on short-term gains or take a long-term position in the company. More…
Peers
Its competitors are Ultra Clean Holdings Inc, ASM International NV, Amtech Systems Inc.
– Ultra Clean Holdings Inc ($NASDAQ:UCTT)
Ultra Clean Holdings Inc is a leading provider of critical sub-systems and components for the semiconductor and display capital equipment industries. The company has a market cap of 1.59B as of 2022 and a Return on Equity of 10.0%. The company’s products are used in the fabrication of semiconductor chips and flat panel displays.
– ASM International NV ($OTCPK:ASMIY)
ASM International NV is a global company that provides materials science solutions. It has a market cap of 13.16B as of 2022 and a return on equity of 19.23%. The company offers products and services for semiconductor and other advanced materials industries. Its products include equipment, services, and software. The company serves customers in more than 60 countries worldwide.
– Amtech Systems Inc ($NASDAQ:ASYS)
Amtech Systems Inc is a global leader in the design and manufacture of solar power systems. They provide turnkey solutions for the solar power industry, including the design, engineering, and manufacturing of solar power equipment. Their products are used in a variety of applications, including residential, commercial, and industrial solar power systems. Amtech’s mission is to provide renewable energy solutions that improve the quality of life for people around the world.
Summary
Kulicke and Soffa Industries have recently seen a significant drop in their operating profits and revenues, leading investors to become concerned about the company’s future prospects. The stock price reacted immediately to this news, plunging as market participants responded to the discouraging news. Analysts suggest that Kulicke and Soffa Industries should focus on cost-cutting and other measures to improve their profitability.
Investors should also consider the company’s competitive landscape, as well as their ability to generate sufficient cash flows in the coming quarters. The company’s long-term prospects may depend on their ability to turn around their current performance.
