📊 COHU Key Takeaways
Investment Thesis
COHU is experiencing severe profitability deterioration with negative operating and net margins despite 12.7% revenue growth, indicating operational challenges outpacing top-line expansion. While strong liquidity metrics and positive free cash flow provide a buffer, the company's negative ROE/ROA and inability to convert revenue growth into profits signal fundamental business stress that requires immediate operational improvement.
COHU Strengths
- Strong liquidity position with 6.88x current ratio and $227.1M cash reserves provides financial flexibility
- Positive free cash flow of $10.7M demonstrates ability to generate cash despite profitability challenges
- Revenue growth of 12.7% YoY shows market demand and top-line resilience
- Moderate leverage with 0.39x debt-to-equity ratio limits financial distress risk
COHU Risks
- Significant operating losses (-$69.8M operating income) and negative net margin (-16.4%) indicate core business is unprofitable
- Deteriorating profitability despite revenue growth suggests operational inefficiency and potential structural cost issues
- Negative interest coverage ratio (-34.0x) creates debt service concerns if operating losses persist
- Low FCF margin (2.4%) relative to revenue suggests minimal earnings quality and limited reinvestment capacity
Key Metrics to Watch
- Operating margin trend - critical to determine if losses are temporary or structural
- Gross margin sustainability - currently at 31.1%, need to see if it can expand with scale
- Operating cash flow conversion - monitor if profitability improvements translate to cash generation
- Capital efficiency - track whether capex investments drive future margin expansion
COHU Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 6.88x current ratio provides a solid financial cushion.
COHU Profitability Ratios
COHU vs Default Sector
How COHU INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
COHU Balance Sheet & Liquidity
COHU 5-Year Financial Trend
5-Year Trend Summary: COHU INC's revenue has declined by 28% over the 5-year period, indicating business contraction. The most recent EPS of $0.59 reflects profitable operations.
COHU Growth Metrics (YoY)
COHU Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $95.3M | -$4.1M | $-0.09 |
| Q2 2025 | $104.7M | -$15.8M | $-0.34 |
| Q1 2025 | $96.8M | -$14.6M | $-0.31 |
| Q3 2024 | $95.3M | $3.9M | $0.08 |
| Q2 2024 | $104.7M | $10.6M | $0.22 |
| Q1 2024 | $107.6M | -$14.6M | $-0.31 |
| Q3 2023 | $150.8M | $3.9M | $0.08 |
| Q2 2023 | $168.9M | $10.6M | $0.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
COHU Capital Allocation
COHU SEC Filings
Access official SEC EDGAR filings for COHU INC (CIK: 0000021535)
📋 Recent SEC Filings
❓ Frequently Asked Questions about COHU
What is the AI rating for COHU?
COHU INC (COHU) has an AI rating of SELL with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are COHU's key strengths?
Strong liquidity position with 6.88x current ratio and $227.1M cash reserves provides financial flexibility. Positive free cash flow of $10.7M demonstrates ability to generate cash despite profitability challenges.
What are the risks of investing in COHU?
Significant operating losses (-$69.8M operating income) and negative net margin (-16.4%) indicate core business is unprofitable. Deteriorating profitability despite revenue growth suggests operational inefficiency and potential structural cost issues.
What is COHU's revenue and growth?
COHU INC reported revenue of $453.0M.
Does COHU pay dividends?
COHU INC does not currently pay dividends.
Where can I find COHU SEC filings?
Official SEC filings for COHU INC (CIK: 0000021535) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is COHU's EPS?
COHU INC has a diluted EPS of $-1.59.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.