Kulicke and Soffa Industries, Inc. (KLIC) is a Technology stock trading at $78.89 (as of 2026-09-02), with a market capitalization of $4.13B and a trailing P/E of 38.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.
Kulicke and Soffa Industries designs, manufactures, and sells equipment and tools used to assemble semiconductor devices, operating through Capital Equipment and Aftermarket Products and Services. Its offerings include semiconductor assembly and packaging equipment, related consumables and software, and services such as maintenance, repair, and upgrades for semiconductor and electronics manufacturers.
Understand Kulicke and Soffa Industries, Inc.: how it makes money
Kulicke and Soffa sells the tools and consumables that assemble chips into finished packages (die attach, wire bonding, advanced packaging equipment). Revenue splits between upfront capital equipment sales and recurring aftermarket products and services, giving the company a mix of lumpy project orders and steady consumable pull.
Capital equipment orders bring in project-based revenue and fund R&D, while the aftermarket (consumables like capillaries, dicing blades, and wedges plus service contracts) creates a recurring annuity tied to the installed base, smoothing earnings and locking in customer switch-costs.
Business quality (Mixed): 48% gross margin and 21% operating margin are solid for a mid-cap equipment maker, but the cyclicality of end-market demand (auto, industrial, memory) caps valuation. Trading at 30.3x versus a 39x industry average, the market is already discounting for recovery risk.
Valuation: At 30× earnings, KLIC trades 22% below the Semiconductors average (39×).
Bull case
TCB becomes a $100M line: Management expects thermal compression bonding (TCB) revenue to exceed $100 million this fiscal year, and Singapore capacity expansion targets a threefold increase in fluxless TCB production. This gives KLIC a high-margin growth leg in advanced packaging that is underpinned by committed capacity, not just a one-time order spike.
22% valuation discount to peers: KLIC trades at 30.3x earnings versus a 39x semiconductor industry average, a 22% discount. With 48% gross margin and 21% operating margin already in place, the multiple gap implies the market is underpricing the aftermarket stickiness and the TCB growth optionality.
Broad-based recovery, not one niche: Management described general semiconductor revenue growth as broad-based, with customer capacity investment spanning multiple end-markets. This reduces the risk that KLIC is a one-cycle story tied to a single consumer or AI spend wave.
Bear case
Memory fragility and customer concentration: Memory revenue declined sequentially in Q1 FY26 and management flagged continued vulnerability to customer concentration. If one or two memory customers cut wafer starts, the hit to KLIC's equipment orders lands disproportionately on a small revenue base.
Auto and industrial drag through FY26: Management cautioned that automotive and industrial markets remain exposed to industry headwinds through the full fiscal year. These segments have historically carried meaningful volume for die-attach and wire-bonder orders, so a prolonged slowdown caps the recovery breadth the pricing already assumes.
Tax rate above 20% compresses net: The effective tax rate is guided above 20% near term, which directly reduces the net-income conversion of the 21% operating margin. For a company already trading below the industry multiple, any additional earnings drag weakens the buyback and EPS-growth case.
Valuation — source: SEC EDGAR (first-party)
Price
$78.89
Market Cap
$4.13B
P/E Ratio
38.9
EV / EBITDA
27.5
Price / Book
4.53
Price / Sales
4.48
FCF Yield
2.3%
DCF Value (model)
$4.16
DCF Upside vs Price
-94.7%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)
$654.08M
Net Margin
0.0%
Revenue Growth (YoY)
122.6%
EPS Growth (YoY)
-1933.3%
FCF Growth (YoY)
-61.4%
Financial Health — source: SEC EDGAR
Altman Z-Score
11.64 (safe)
Valuation vs Sector & Industry
Stock P/E
38.9
Sector P/E (Technology)
31.8
Industry P/E (Electronic Equipment)
38.0
vs Sector
22.2%
vs Industry
2.5%
Company
Sector
Technology
Industry
Electronic Equipment
CEO
Lester A. Wong
Employees
2,677
Country
SG
IPO Date
1958-09-16
Kulicke and Soffa Industries, Inc. earnings call transcripts