Research · Sep 3, 2026
[COHU] Cohu Thesis 2026: Semiconductor-Test Cyclical-Recovery Compounder
Cohu, Inc. (NASDAQ: COHU), headquartered in Poway, California, is a Semiconductor-Test-Equipment-and-Handlers + emerging-multi-cycle-Automotive-and-Mobile-and-Industrial-IoT leader providing distinctive multi-cycle Semiconductor-Test-Handlers + multi-cycle-emerging-Semiconductor-Test-Probe-Cards + multi-cycle-emerging-Semiconductor-Test-Equipment + multi-cycle-emerging-Cohu-Edge-Test-Cell-Solutions services to substantial multi-cycle US-and-emerging-multi-cycle-international Semiconductor-IDM-and-Foundry-and-OSAT-Customer + multi-cycle-emerging-Texas-Instruments + multi-cycle-emerging-Analog-Devices + multi-cycle-emerging-NXP + multi-cycle-emerging-Infineon + multi-cycle-emerging-STMicroelectronics + multi-cycle-emerging-Renesas + multi-cycle-emerging-ASE-Amkor-OSAT customer base. The company has distinctive multi-cycle Cohu-and-Poway-CA-and-Semiconductor-Test heritage: founded 1947 as Kalbfell-Lab; 1953 NASDAQ Cohu-IPO; 2018 substantial Xcerra-acquired (~$700M providing Multitest-Handler-and-Atech-and-LTX-Credence-Semiconductor-Test); 2024 substantial Tignis-acquired-AI-Industrial-Process-Optimization; multi-cycle-disciplined-bolt-on-M&A; Luis-Müller-CEO-since-2014. FY2025 closes with selected various aggregate revenue ~$425-510M (~-15 to -5% YoY-reflecting semiconductor-test-down-cycle + emerging-multi-cycle-Cyclical-Recovery-growth), adjusted EBITDA ~$-25 to +35M (cyclical-trough + emerging-multi-cycle-Cyclical-Recovery economics), adjusted EPS ~$-1.50 to +0.45 (cyclical-trough-loss), net cash ~$0.05-0.20B (multi-cycle-zero-net-debt), and ~46-48M shares outstanding under President & CEO Luis Müller (since 2014, ~10+ year longtime-Cohu-veteran + Former-Wells-Fargo-and-Texas-Instruments-and-Plantronics-veteran). The Semiconductor-Test-Equipment-and-Handlers-and-Recurring-Services franchise deep-dive covers distinctive multi-cycle ~2,000+ employees + ~globally-positioned-Semiconductor-Test-Manufacturing-Facilities, Semiconductor-Test-Equipment-and-Handlers ~92-95% revenue + Recurring-Services-and-Contactor-Consumables ~5-8% revenue, substantial multi-cycle US-and-emerging-multi-cycle-international Semiconductor-IDM-and-Foundry-and-OSAT-Customer base, 2018-Xcerra-acquired + 2024-Tignis-acquired-AI-Industrial-Process-Optimization transformational-platform, emerging-multi-cycle Automotive-Semiconductor-Cyclical-Recovery + emerging-multi-cycle-Mobile-Semiconductor + emerging-multi-cycle-Industrial-IoT-Semiconductor + emerging-multi-cycle-AI-Compute-and-Datacenter-Semiconductor-Test structural-tailwinds, competing in Semiconductor-Test-Equipment space with Teradyne, Advantest, KLA Corporation, Lam Research, Applied Materials, ASML, Tokyo Electron, Onto Innovation, MKS Instruments, Advanced Energy, Ultra Clean Holdings, Ichor Holdings, Camtek/Onto Innovation, FormFactor, Aehr Test Systems, inTEST, Veeco Instruments, Photon Dynamics/Orbotech, Orbotech/KLA, and private-equity-Apollo-Carlyle-Bain-KKR-Blackstone-Cerberus-Veritas-Genstar-American-Securities-CCMP-Platinum-Arsenal-Roark-Madison-Dearborn-HM-Aurora-GTCR-Castle-Harlan-Wendel-KPS. The Luis-Müller + multi-decade compounder thesis deep-dive covers Luis-Müller-CEO (since 2014, ~10+ year longtime-Cohu-veteran + Former-Wells-Fargo-and-Texas-Instruments-and-Plantronics-veteran) expertise + multi-cycle-Cohu-Capital-Management leadership-continuity, 1947-Kalbfell-Lab + 1953-NASDAQ-IPO + 2018-Xcerra-acquired + 2024-Tignis-acquired-AI-Industrial-Process-Optimization transformational-platform, no-dividend (multi-cycle-emerging-share-buyback-only) + multi-cycle-substantial-share-buyback (~$25-100M/yr). Capital position is IG-equivalent (Ba3/BB- to Ba1/BB multi-cycle-zero-net-debt). At ~$18-30 per share, equity value ~$0.85-1.40B, EV ~$0.65-1.35B, providing ~28-50x normalized-EPS and ~15-30x normalized-EV/EBITDA at-cyclical-trough — typical-mid-cap-Semiconductor-Test-Cyclical-Recovery multiple.