Kulicke & Soffa For Semiconductor Equipment & Packaging
Today I'm reviewing a small-cap semiconductor equipment & materials firm by the name of Kulicke and Soffa Industries, Inc. Its trading ticker symbol is KLIC.
Kulicke & Soffa Industries Inc is engaged in the semiconductor industry. It manufactures and sells capital equipment and expendable tools used to assemble semiconductor devices.
It operates in two segments, Capital Equipment, and Aftermarket Products and Services (APS). The Capital Equipment segment manufactures and sells a line of ball bonders, wafer level bonders, wedge bonders, advanced packaging, and electronic assembly solutions. The APS segment manufactures and sells various tools for a range of semiconductor packaging applications. This segment also provides spare parts, equipment repair, maintenance and servicing, training services, and equipment upgrading services.
The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region.
Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.
I use three key data points to gauge the value of any dividend equity or fund likeKulicke and Soffa Industries, Inc. (KLIC):
(1) Price
(2) Dividends
(3) Returns
Besides those three, four more keys will finally unlock an equity or fund in which to invest.
But those first three primary keys, best tell whether a company has made, is making, and will make money.
KLIC Price
Kulicke and Soffa's price per share was $27.00 at yesterday's market close. A year ago its price was $18.93 for a gain of $8.07 per share.
Assuming KLIC's price will trade in the range of $18 to $30 again next year, that $8.07 gain could repeat itself and move Kulicke & Soffa's current $27.00 price to $35.07 by mid- August 2019.
KLIC Dividends
Kulicke and Soffa's most recent quarterly dividend was $0.12declared June 14 and paid July 16th.
At that most recent quarterly pay rate, its 2018 annual dividend is calculated at $0.48 yielding 1.78% at yesterday's closing $27.00 price.
Gains ForKLIC?
Adding the $0.48 estimated annual dividend to the $8.07 year over year theoretical price gain for Applied Materials makes a $8.55gross annual per share gain, which will be reduced by costs to trade the shares.
A little under $1,000.00 invested today at the $27.00 recent price buys 37 Kulicke and Soffa Industries, Inc. (KLIC) shares.
A $10 broker fee paid half at purchase and half at sale costs about $0.27 per share, subtracting that $0.27 brokerage cost from the estimated $8.55 gross gain leaves a net gain of $8.28 X 37 shares = $306.36 or a 30.65% net gain on a $999.00 investment.
Therefore, Kulicke and Soffa Industries, Inc., whose trading ticker symbol is KLIC, now shows a possible 30.65% net gain including a 1.78% dividend yield.
Four brokers cover this stock:
Three say "buy"
One rate it "hold".
So, the analyst consensus recommendation number is 1.50 or "outperform".
The price target set by those four brokers is $2.27 under the $35.07 year over year price target I named.
Y Charts has little data on this firm. Y Charts has not yet rated KLIC for an overall "Y" rating; it has "insufficient data" for a value score, but "strong" for a Fundamental mark, and rates KLIC "1.81% over" for a Historic Valuation score based on a historic $26.52 valuation per share.
So, you could look at all those various numbers this way, Kulicke and Soffa Industries, Inc. (KLIC) has made money, is making money, and could net a 30.65%gain including a 1.78% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. Actual results remain to be seen. Results could turn out to be far higher or lower. More study is required for you to determine if Kulicke and Soffa Industries, Inc. (KLIC) is worth your time and money.
Disclaimer:
This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
more