📊 COHU Key Takeaways
Is Cohu Inc. (COHU) a Good Investment?
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 shows improving top-line momentum with 12.7% revenue growth and remains financially resilient thanks to strong liquidity, positive free cash flow, and a moderate debt load relative to equity. However, the business is still materially unprofitable, with deeply negative operating and net margins, weak returns on capital, and negative interest coverage, which limits the quality of the recovery. The fundamentals support balance-sheet stability, but not yet a clearly durable earnings turnaround.
Why Buy Cohu Inc. Stock? COHU 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
- 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
- Revenue returned to growth at 12.7% YoY, indicating demand improvement.
- Balance sheet liquidity is strong, with $227.05M in cash and very high current and quick ratios.
- Operating cash flow and free cash flow remained positive despite net losses, supporting financial flexibility.
COHU Stock Risks: Cohu Inc. Investment 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
- Operating performance remains weak, with a -15.4% operating margin and -16.4% net margin.
- Returns are negative, with ROE of -9.5% and ROA of -6.0%, indicating inefficient capital use.
- Negative interest coverage and $305.09M of long-term debt could become a larger constraint if profitability does not recover.
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
- Operating margin improvement toward sustained breakeven
- Free cash flow durability relative to revenue growth
Cohu Inc. (COHU) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
COHU vs Utilities Sector: How Cohu Inc. Compares
How Cohu Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cohu Inc. Stock Overvalued? COHU Valuation Analysis 2026
Based on fundamental analysis, Cohu Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cohu Inc. Balance Sheet: COHU Debt, Cash & Liquidity
COHU Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
COHU Quarterly Earnings & 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 Inc. Dividends, Buybacks & Capital Allocation
COHU SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are COHU's key strengths?
Claude: 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. ChatGPT: Revenue returned to growth at 12.7% YoY, indicating demand improvement.. Balance sheet liquidity is strong, with $227.05M in cash and very high current and quick ratios..
What are the risks of investing in COHU?
Claude: 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. ChatGPT: Operating performance remains weak, with a -15.4% operating margin and -16.4% net margin.. Returns are negative, with ROE of -9.5% and ROA of -6.0%, indicating inefficient capital use..
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is COHU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cohu Inc. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is COHU stock overvalued or undervalued?
Valuation metrics for COHU: ROE of -9.5% (sector avg: 10%), net margin of -16.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy COHU stock in 2026?
Our dual AI analysis gives Cohu Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is COHU's free cash flow?
Cohu Inc.'s operating cash flow is $31.7M, with capital expenditures of $21.0M. FCF margin is 2.4%.
How does COHU compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -16.4% (avg: 12%), ROE -9.5% (avg: 10%), current ratio 6.88 (avg: 0.8).