Key statistics

Is COHU a good stock to buy in 2026?

Cohu, Inc. (COHU) presents a mixed investment picture as of May 2026. While a strong majority of analysts (85.7%) rate COHU stock as a “Buy” with a modest +0.4% upside to their consensus target of $49.75, the underlying financials raise concerns. Its deeply negative P/E ratio of -41.92x stands in stark contrast to the sector average of 57.9x, and our DCF model suggests a fair value of only $6.49, indicating significant overvaluation. Investors considering COHU stock should weigh the positive analyst sentiment and revenue growth against profitability challenges and a high valuation based on fundamental models.

2026 COHU price scenarios

Based on analyst consensus of $49.75 from 14 analysts. Not a prediction by Alert Invest.

About Cohu, Inc. (COHU)

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor and electronics manufacturers, and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products.

Leading Cohu, Inc. is CEO Luis Antonio Müller, overseeing a global workforce of approximately 2,986 employees. The company’s distinctive strengths lie in its comprehensive offering of semiconductor test and inspection solutions, spanning automated test equipment, handlers, and interface products. This integrated approach allows Cohu to serve a broad range of customers across the semiconductor manufacturing value chain, providing crucial tools for ensuring quality and performance in advanced electronic devices.

COHU competitive moat and business analysis

Cohu operates in the highly specialized and competitive semiconductor test equipment industry. While its gross margin stands at a respectable 36.21%, the company’s net margin is currently at a negative -11.54%, indicating challenges in translating gross profits into net earnings. Furthermore, key profitability metrics such as Return on Equity (ROE) and Return on Invested Capital (ROIC) are not available, suggesting that sustained, positive returns on capital are not evident from the provided data. This performance indicates that COHU’s competitive moat, if any, is not currently manifesting in robust, consistent profitability.

Historically, Cohu has operated with diverse revenue streams. While specific recent segment and geographic revenue breakdowns are not detailed in the provided data beyond a 2014 fiscal year placeholder, the company explicitly states its international presence, serving markets in China, the United States, Taiwan, Malaysia, and the Philippines. This global footprint in key semiconductor manufacturing hubs underscores its broad market access. The company’s offerings broadly cover semiconductor test equipment and services, suggesting a diversified product portfolio within its niche.

Despite profitability challenges, Cohu has demonstrated a positive revenue growth of 12.7% year-over-year. This growth indicates that the company is expanding its top line, which could be a positive sign for future profitability if cost structures can be managed more effectively. Unfortunately, no transcript quotes are available to provide deeper insight into management’s specific strategies or outlook on this growth and its impact on strengthening the company’s competitive position. Continued revenue expansion in a highly technical sector is often indicative of innovation and market relevance.

When considering the broader landscape of semiconductor equipment providers, understanding COHU stock’s position relative to its peers is crucial. Comparing Cohu to companies like COHU vs AOSL, COHU vs CRCT, and COHU vs INDI can offer insights into its relative strengths in areas such as market share, technological leadership, and financial performance. These comparisons help investors assess whether COHU is executing effectively within its industry niche or if it lags behind its competitors in key operational or financial metrics, which is vital for a comprehensive COHU valuation.

Cohu, Inc. analyst rating

Based on 14 analysts. 85.7% rate COHU Buy or Strong Buy.

An 85.7% “Buy” rating from analysts is indeed a very strong endorsement, particularly within the dynamic and often cyclical Technology sector, especially for semiconductor stocks. This high level of conviction suggests that a significant portion of the analyst community sees substantial upside potential or robust fundamentals for COHU stock despite some of its current financial metrics.

Is COHU undervalued or overvalued?

Assessing COHU valuation presents a complex picture. The company currently trades with a negative P/E ratio of -41.92x. This negative figure is a direct result of the company reporting losses, which makes a direct comparison to the Semiconductors sector average P/E of 57.9x difficult and signals a fundamental profitability issue rather than traditional “cheapness.” While a negative P/E can sometimes indicate an investment in a turnaround story, it primarily highlights that the company is not generating earnings for its shareholders.

Further complicating the COHU valuation is the Discounted Cash Flow (DCF) fair value. Our DCF model calculates a fair value of $6.49, which represents an alarming -86.9% discount compared to the current stock price. This significant discrepancy strongly suggests that COHU stock is substantially overvalued by the market based on its projected future cash flows. Investors must reconcile this deep fundamental overvaluation with the more favorable P/B ratio of 3.03x and P/S ratio of 4.86x, which appear fair but do not negate the profound warning from the DCF analysis.

COHU financial health & key metrics

For value investors, the financial health of COHU stock presents a contradictory landscape. On one hand, the company demonstrates strong revenue growth at 12.7% and maintains a healthy debt-to-equity ratio of 0.43x, suggesting good management of its balance sheet. However, significant red flags appear in its profitability, with a negative net margin of -11.54% and a P/E ratio that is also negative due to ongoing losses. Furthermore, the Discounted Cash Flow (DCF) fair value of $6.49 starkly indicates that the stock may be highly overvalued, posing a considerable risk for those focused on intrinsic value. While growth is promising, the lack of profitability and the DCF valuation suggest caution is warranted for COHU.

Cohu, Inc. earnings history & next report

Cohu, Inc. reported EPS of $0.01, missing estimates by 66.67%. Next earnings: 2026-07-30 with EPS estimate of $0.14.

Cohu, Inc.’s next earnings report, scheduled for 2026-07-30, will be a critical event for COHU stock. Given the previous quarter’s miss, where EPS of $0.01 fell short of estimates by 66.67%, investors will be closely watching for signs of improved operational execution and a return to profitability. Key metrics to monitor include whether the company can meet or exceed the EPS estimate of $0.14, and any updates on revenue guidance, margin improvement initiatives, and overall demand trends within the semiconductor test equipment market. Strong performance in these areas would be essential to bolster investor confidence in COHU’s future prospects.

COHU daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

COHU insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent COHU analyst rating changes

Cohu, Inc. stock news today

How does COHU compare to its peers?

In the competitive Semiconductors industry, understanding how Cohu, Inc. (COHU) stacks up against its rivals is key to grasping its market position and potential. A direct comparison with its industry peers provides valuable context for assessing COHU’s operational efficiency, growth prospects, and overall COHU valuation.

FAQ — Cohu, Inc. (COHU) stock