Cohu Inc

COHU

Instruments For Meas & Testing of Electricity & Elec Signals

Mkt Cap

$1.495B

PE

-690.89

Debt

$10.83M

Cash

$191.1M

EV

$1.315B

FCF

$56.72M

Market Cap

$1.495B

P/E Ratio

-690.89

Debt

$10.83M

Cash

$191.1M

EV

$1.315B

FCF

$56.72M

Charts data: {"Earnings":[{"time":"2014-12-26","value":8708000},{"time":"2015-12-25","value":250000},{"time":"2016-12-30","value":3039000},{"time":"2017-12-29","value":32843000},{"time":"2018-12-28","value":-32424000},{"time":"2019-12-27","value":-69700000},{"time":"2020-12-25","value":-13801000},{"time":"2021-12-24","value":167325000},{"time":"2022-12-30","value":96847000},{"time":"2023-12-29","value":28156000}],"Sales":[{"time":"2014-12-26","value":333323000},{"time":"2015-12-25","value":269654000},{"time":"2016-12-30","value":282084000},{"time":"2017-12-29","value":352704000},{"time":"2018-12-28","value":451768000},{"time":"2019-12-27","value":583329000},{"time":"2020-12-25","value":636007000},{"time":"2021-12-24","value":887214000},{"time":"2022-12-30","value":812775000},{"time":"2023-12-29","value":636322000}],"Net Margins":[{"time":"2014-12-26","value":0.026124809869105942},{"time":"2015-12-25","value":0.0009271140053550105},{"time":"2016-12-30","value":0.010773386650784873},{"time":"2017-12-29","value":0.09311774178914897},{"time":"2018-12-28","value":-0.07177135166722742},{"time":"2019-12-27","value":-0.11948660190047126},{"time":"2020-12-25","value":-0.02169944670420294},{"time":"2021-12-24","value":0.18859598698848304},{"time":"2022-12-30","value":0.11915597797668481},{"time":"2023-12-29","value":0.044248037943053986}],"Assets":[{"time":"2014-12-26","value":348818000},{"time":"2015-12-25","value":345346000},{"time":"2016-12-30","value":345512000},{"time":"2017-12-29","value":420457000},{"time":"2018-12-28","value":1134002000},{"time":"2019-12-27","value":1077710000},{"time":"2020-12-25","value":1090346000},{"time":"2021-12-24","value":1259044000},{"time":"2022-12-30","value":1227414000},{"time":"2023-12-29","value":1150352000}],"Stockholders Equity":[{"time":"2014-12-26","value":247068000},{"time":"2015-12-25","value":238137000},{"time":"2016-12-30","value":235469000},{"time":"2017-12-29","value":289091000},{"time":"2018-12-28","value":546243000},{"time":"2019-12-27","value":483072000},{"time":"2020-12-25","value":512288000},{"time":"2021-12-24","value":882502000},{"time":"2022-12-30","value":928841000},{"time":"2023-12-29","value":950170000}],"ROE":[{"time":"2014-12-26","value":0.03524535755338611},{"time":"2015-12-25","value":0.001049815862297753},{"time":"2016-12-30","value":0.012906157498439284},{"time":"2017-12-29","value":0.1136078259094887},{"time":"2018-12-28","value":-0.05935819772518824},{"time":"2019-12-27","value":-0.14428490990990991},{"time":"2020-12-25","value":-0.026939924417515148},{"time":"2021-12-24","value":0.1896029697383122},{"time":"2022-12-30","value":0.10426649986380877},{"time":"2023-12-29","value":0.02963259206247303}],"ROA":[{"time":"2014-12-26","value":0.047669558337012426},{"time":"2015-12-25","value":0.023046451964117146},{"time":"2016-12-30","value":0.016395957303943134},{"time":"2017-12-29","value":0.08423929200845746},{"time":"2018-12-28","value":-0.02375216269459842},{"time":"2019-12-27","value":-0.0478059960471741},{"time":"2020-12-25","value":0.0029898766079758166},{"time":"2021-12-24","value":0.16005636022251804},{"time":"2022-12-30","value":0.10323737549025838},{"time":"2023-12-29","value":0.03982780922708875}]}

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. Cohu, Inc. was incorporated in 1947 and is headquartered in Poway, California.

Sector

10-Q
9/30/23
10-Q
7/1/23
10-Q
4/1/23
10-K
12/31/22
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9/24/22
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6/25/22
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3/26/22
10-K
12/25/21
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6/26/21
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3/27/21
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12/26/20
10-Q
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6/27/20
10-Q
3/28/20
10-K
12/28/19
10-Q
9/28/19
10-Q
6/29/19
10-Q
3/30/19
10-K
12/29/18
10-Q
9/29/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/30/17

DCF

Discounted Cash Flow Valuation of Cohu Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$56.72M	$70.47M	$86.06M	$103.2M	$121.7M	$140.8M	$159.8M	$178.1M	$194.6M	$208.5M	$218.9M	$2.189B
DCF		$61.28M	$65.07M	$67.89M	$69.56M	$69.98M	$69.11M	$66.95M	$63.62M	$59.27M	$54.12M	$541.2M
Value	$1.188B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 57%

Earnings Stability 32%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	0.093%	1.1%	9.3%	-7.2%	-12%	-2.2%	19%	12%	4.4%	-0.38%
ROA	2.3%	1.6%	8.4%	-2.4%	-4.8%	0.3%	16%	10%	4%	0.82%
ROE	0.1%	1.3%	11%	-5.9%	-14%	-2.7%	19%	10%	3%	-0.24%

What is the average Net Margin?

The average Net Margin over the past 5 years is +2.32%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +4.3%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +3.91%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.65%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +1.55%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +4.02%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	0.27	12.40	-502.04	10.75	1.56	0.88	0.55	0.19
Debt Equity	-	-	0.03	0.67	0.76	0.65	0.15	0.09	0.05	0.01
MIN
Graham Stability	-	-	100%	-270%	-6K%	-	-	100%	34%	-6K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.19.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 41.15.

What is the Graham’s Stability?

Graham’s Stability measure stands at -60.47.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	12%	7.1%	0.017%	-22%	-0.66%
Net Income	37%	-	-	-71%	-86%
Stockholders Equity	22%	12%	23%	2.3%	0.98%
FCF	22%	24%	40%	-13%	3.7%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.09%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.66%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -86%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.71%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.98%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +23.72%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +3.68%.