Stock Analysis · Cohu Inc (COHU)
Overview
Cohu, Inc. is a U.S.-based supplier to the semiconductor industry. In simple terms, it provides equipment and related solutions used to test and inspect semiconductors (chips) during manufacturing, helping chipmakers and outsourced assembly and test providers verify that chips meet performance and reliability requirements before they are shipped into end products.
Its revenue is primarily tied to semiconductor manufacturing activity, especially the stages where chips are packaged and tested. This typically includes selling equipment, as well as ongoing revenue from aftermarket items and services tied to an installed base (for example, support, spares, and consumables). Exact revenue splits can change by year and are described in the company’s filings.
Main revenue sources (high-level):
- Semiconductor test equipment and inspection/handling systems (system sales tied to customer capital spending)
- Aftermarket and services (recurring/supporting revenue tied to the installed base)
The multi-year income profile below shows how results can swing with the semiconductor cycle: revenue fell materially from 2021 to 2024, and profitability moved from solidly positive to losses in 2024–2025.
From 2021 to 2025, total revenue declined from about $887M (2021) to about $453M (2025). Over the same period, operating income moved from roughly +$132M (2021) to about -$58M (2025), illustrating how sensitive earnings can be when industry demand weakens while operating expenses (such as R&D) remain significant.
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 16, 2026 | |
| Context | ||
| Sector | Technology | |
| Industry | Semiconductor Equipment & Materials | |
| Market Cap ⓘ | $1.43B | |
| Beta ⓘ | 1.28 | |
| Fundamental | ||
| P/E Ratio ⓘ | N/A | 48.26 |
| Profit Margin ⓘ | -16.40% | 8.62% |
| Revenue Growth ⓘ | 29.90% | 12.90% |
| Debt to Equity ⓘ | 45.76% | 20.73% |
| PEG ⓘ | 1.60 | |
| Free Cash Flow ⓘ | -$30.48M | |
Cohu’s market capitalization is about $1.43B, and the stock’s beta of ~1.29 suggests it has tended to move more than the overall market. The latest profit margin is about -16.4%, below the industry median (~8.6%), reflecting recent losses. At the same time, the most recent year-over-year revenue growth shown is about +29.9% versus an industry median of ~12.9%, indicating a rebound from a weaker period. Leverage is higher than the industry median with debt-to-equity around 45.8% (industry median ~20.7%). Free cash flow over the trailing twelve months is about -$30.5M, which means the business recently used more cash than it generated after capital spending.
Growth (Medium)
Cohu operates in the semiconductor equipment ecosystem, which is supported over the long run by the broad adoption of chips across electronics, automotive systems, industrial applications, and data infrastructure. However, demand for semiconductor equipment is also known for pronounced cycles: periods of strong spending can be followed by slowdowns as customers digest capacity and work through inventory.
The most recent revenue growth trend shown reflects that cyclicality: after a prolonged downturn through 2023–2024, growth turned positive in 2025. This pattern often aligns with customers resuming spending after a correction, though the durability of a rebound can depend on end-market demand and customer capital expenditure plans.
Year-over-year revenue growth was deeply negative across 2023–2024 (reaching roughly -40% in early 2024), then improved through 2025, ending at about +29.9%. This suggests a recovery phase, but it follows a steep decline in the preceding period.
For long-term growth, a key question is whether the company can translate an industry upturn into sustained profitability and cash generation. In semiconductor equipment, customer requirements can evolve (for example, more complex packaging and higher reliability needs), which can create opportunities for differentiated test and inspection solutions—but also demands steady investment in engineering and customer support.
Free cash flow improved from about $18.3M (2021) to a peak near $110.2M (2023), then declined to about $56.7M (2024) and turned negative to about -$11.7M by early 2025 (with the latest metric showing about -$30.5M TTM). This is important because, over long periods, consistent positive free cash flow can help fund R&D, strengthen the balance sheet, or support shareholder returns without relying on external financing.
Risks (High)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
