Spotlight On Cohu Inc’s (NASDAQ:COHU) Fundamentals
Cohu Inc (NASDAQ:COHU) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of COHU, it is a financially-robust company with an impressive history and a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Cohu here.
Solid track record with excellent balance sheet
Over the past few years, COHU has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did COHU outperformed its past performance, its growth also surpassed the Semiconductor industry expansion, which generated a 28.19% earnings growth. This paints a buoyant picture for the company.
COHU’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that COHU manages its cash and cost levels well, which is a crucial insight into the health of the company. COHU seems to have put its debt to good use, generating operating cash levels of 4.13x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Cohu, there are three pertinent aspects you should further examine:
Valuation: What is COHU 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 COHU is currently mispriced by the market.
Dividend Income vs Capital Gains: Does COHU 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 COHU as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of COHU? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
