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Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of KLIC, it is a financially-sound company with a strong history and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Kulicke and Soffa Industries here.
Very undervalued with excellent balance sheet
KLIC delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did KLIC outperformed its past performance, its growth also exceeded the Semiconductor industry expansion, which generated a 36% earnings growth. This is what investors like to see!
KLIC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that KLIC manages its cash and cost levels well, which is a key determinant of the company’s health. KLIC's has produced operating cash levels of 6.02x total debt over the past year, which implies that KLIC's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Kulicke and Soffa Industries, I've compiled three fundamental factors you should further examine:
- Valuation: What is KLIC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KLIC is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does KLIC return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from KLIC as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KLIC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.