KULICKE & SOFFA INDUSTRIES INC

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 1✗ 27▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio4.4x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 17267.5x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value-0.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-0.1%, ROC=-0.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS17267.5x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)31.6x

  ✗Dreman< 8x

  Price / Book Value per Share4.4x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=17267.5x, OE Yield=0.0%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=17267.5x, FCF Yield=2.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=17267.5x, P/B=4.4x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share37.2x

  ✗Ackman<= 25

  Price vs. Trailing Low215% of trailing low ($32.15)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+3.20%; #2304/6340 (top 36.3%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.2523; #3913/6449 (top 60.7%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS17267.5x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.00

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share4.80x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+28.5%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.2629; #3499/5247 (top 66.7%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.11%; #2385/4519 (top 52.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-10.83%; #3485/6202 (top 56.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 8▾

  KLIC overvalued: all 8 models price fair value below $69.07 (median $16.77)

  Graham fair value$1.19

  ✗Graham-5704.2% margin vs $69.07

  Buffett fair value$0.22

  ✗Buffett-31295.5% margin vs $69.07

  Munger fair value$18.18

  ✗Munger-279.9% margin vs $69.07

  Pabrai fair value$0.59

  ✗Pabrai-11606.8% margin vs $69.07

  Akre fair value$20.14

  ✗Akre-242.9% margin vs $69.07

  Marks fair value$25.30

  ✗Marks-173.0% margin vs $69.07

  Ackman fair value$15.35

  ✗Ackman-350.0% margin vs $69.07

  Templeton fair value$37.87

  ✗Templeton-82.4% margin vs $69.07
• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag KLIC's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest Coverage

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities3.44

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=-24.1x, D/EBITDA=N/A

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Growth13% pass✓ 4✗ 9▾

  7 of 8 flag KLIC's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 17267.5x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-65.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 43.4% vs Rev: 44.4%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.67 (2009) -> $0.00 (2025)

  ✓DremanPositive over recent years

  EPS CAGR-33.7% CAGR over 15 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency19/21 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-7.4%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-65.6% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 48.3% -> 42.5%, operating margin 5.3% -> -0.5%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR1.0%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-65.6% over 5 years

  ✗Neff7%-20% annualized
• Profitability19% pass✓ 11✗ 24▾

  13 of 16 flag KLIC's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)15/26 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)19/26 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)13.5%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-0.5% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$1.0M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)1.43

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 17267.5x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-65.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE12.7%

  ✗Lynch> 15%

  EBIT / Enterprise Value-0.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-0.1%, ROC=-0.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.02%

  ✓PiotroskiROA > 0

  ROA Change YoY-5.56% -> 0.02% (delta: +5.58%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=10.28%, ROA=0.02%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY38.1% -> 42.5%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue15.2%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity12.7%

  ✓Dreman> 12%

  Margin of SafetyP/E=17267.5x, P/B=4.4x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-0.8% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency19/21 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue13.2%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity12.7%

  ✗Ackman>= 15%

  5-Year EPS CAGR-65.6% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend5.3% (2023) -> -0.5% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 48.3% -> 42.5%, operating margin 5.3% -> -0.5%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+3.20%; #2304/6340 (top 36.3%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+34.71%; #1179/3702 (top 31.8%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+12.69%; #1432/5226 (top 27.4%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1301; #3797/5884 (top 64.5%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-65.6% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years9/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts29% pass✓ 4✗ 10▾

  Split decision: 9 FAIL · 3 PASS · 3 NEUTRAL · 1 BUY

  Overall verdict

  ✗GrahamFAIL (2/9)✓BuffettPASS (4/9)✗LynchFAIL (1/7)✗GreenblattRank #1834✓PiotroskiBUY (F-Score 8)✓DremanPASS (5/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Efficiency38% pass✓ 5✗ 6▾

  5 of 8 flag KLIC's efficiency — Greenblatt, Piotroski, Munger +2 more

  Current Ratio3.44

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)49.6%

  ✓Buffett> 10%

  ROIC - WACC+39.6%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-0.6%

  ✗Greenblatt> 25%

  Current Ratio Change YoY5.41 -> 4.79

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.57x -> 0.59x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities3.44

  ✓Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Lynch, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$1.0M

  ✓BuffettPositive and growing

  FCF Positive and Growing$40.0M

  ✗LynchPositive and growing

  Operating Cash Flow$113.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=10.28%, ROA=0.02%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)31.6x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=17267.5x, FCF Yield=2.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive16/17 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.1%

  ✗Ackman>= 4%

  Price / FCF per Share37.2x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency20/21 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$40.0M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+1.11%; #2385/4519 (top 52.8%)

  ✗OshaughnessyTop 10% of eligible cross-section