Is COHU a high-quality business?

AlphaMadera's AlphaQuality grade scores Cohu, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how COHU compares to a Buffett-style quality bar.

What is Cohu, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to COHU based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes COHU a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

COHU - Cohu, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $49.75 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

D- 32.0 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

F 15.3

5yr Avg ROIC 2.4% 22/100
Operating Margin Trend -10.54 pp/yr 0/100

Capital Efficiency

Weight: 15%

C- 46.3

5yr Avg ROE 3.8% 29/100
5yr Share-Count CAGR -0.9% 79/100

Growth Quality

Weight: 10%

F 8.0

5yr Revenue CAGR -15.5% 0/100
5yr EPS CAGR -58.6% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

B 72.8

5yr FCF Margin 7.1% 58/100
5yr FCF/NI Conversion 1.52x 90/100

Balance Sheet

Weight: 25%

F 23.3

Net Debt / EBITDA 10.00x 0/100
Interest Coverage (EBIT/Int) -29.42x 0/100
Altman Z-Score 3.88 93/100

Stability

Weight: 20%

F 26.7

EPS Volatility (σ/μ) 1.08 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 3/5 40/100

2 of 2 gurus held; 1 added; 1 trimmed.

Holders: 2
Avg Δ position: -20.0%
New buys: 0
Full exits: 0

Wood decreased -40%
Cooperman increased +0%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.