Cohu Inc. (NASDAQ:$COHU) moved on a volatility of -0.40% from open. This translates to roughly a -$0.10 move. The stock recently traded at a price of $24.60 on a trading volume of 20,228 for the session.
Investors looking into the long-term viability of the company may have to consider which direction the stock market will take in the future. Although it’s important to get a general idea of the market conditions, constantly trying to predict the next big stock will probably leave investor’s portfolio’s lacking. Even though there is no immunity from market downturns, having a healthy, diverse portfolio can help to ride out the storm of uncertain market conditions.
With that in mind, let’s take a look at the fundamentals of Cohu Inc. Fundamental analysis takes into account market, stock, and industry conditions to help figure out if a share is priced correctly.
This year, the stock has $0.69 earnings per share. This number is calculated by having the total net income divided by the number of outstanding shares, or put simply, it tells you how profitable a company is on a per share basis.
We can also take a look the three principle profitability ratios.
Firstly, we can take a look at the Return on Assets. The ROA is a measure of how much net income is generated from a company’s total assets. It is calculated by dividing total net income by the average total assets. A higher ROA than the industry average would reflect well on the company’s ability to generate profit on their assets. Cohu currently has an ROA of 0.94.
We can also look at the Return on Invested Capital. The ROIC is calculated by taking the net income minus dividends and dividing it by the total capital invested. This ratio measures how effective a company is at managing its invested capital to generate income. Cohu currently has a ROIC of 1.38.
Finally, we can take a look at Return of Equity. ROE measures profits generated from investments received from shareholders. A company with a higher ROE generally reflects better on management than a company with a lower ROE. Cohu currently has an ROE of 1.38.
In the long term, investors may be wondering where the next couple months are headed. During a bull market, investors may be willing to take more risks than they normally would, but risk management should always be at the forefront of any investor’s mind going into a market. Investors should keep a close eye on the economic data and always been on the lookout for more indicators on potential stocks.
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