Cohu Inc. Common Stock (COHU) fair value

ACCE thesis

Cohu makes semiconductor test handlers, probe cards and test contactors, the equipment that sorts and checks finished chips before they ship, so its revenue tracks chipmakers' test capacity spending and the mix of memory, mobile and automotive demand behind it. Revenue growth of 38.4% is the headline, but operating margin of 0.6% and a negative ROE of -4.8% show that the growth has not yet reached the bottom line, so the question is whether volume leverage arrives before the cost base catches up. The gross margin of 44.0% suggests the product mix still carries pricing power, which is the part worth testing. The forward P/E of 33.7 prices in a recovery in earnings from a thin base, and the score of 55/100 reflects that tension rather than a clear verdict. Worth a deeper look if the next two quarters show operating margin moving well above break-even while gross margin holds.