5-Star Small-Caps Set to Soar: Kulicke and Soffa

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip-equipment maker Kulicke and Soffa Industries (Nasdaq: KLIC  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Kulicke and Soffa and see what CAPS investors are saying about the stock right now.

Kulicke and Soffa facts

Headquarters (Founded)

Singapore (1951)

Market Cap

$715.1 million

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$702.2 million

Management

CEO Bruno Guilmart (since 2010)
CFO Jonathan Chou (since 2010)

Return on Equity (Average, Past 3 Years)

39.2%

Cash/Debt

$380.7 million / $0

Competitors

ASM Pacific Technology
BE Semiconductor Industries
SHINKAWA

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 321 members who have rated Kulicke and Soffa believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, csqrd, succinctly summed up the Kulicke and Soffa bull case for our community:

Tooling and equipment makes electronic assembly more cost effective. Cheap at the moment due to global slow down. Good financial strength, well run with staying power. 12.5% return on assets, 24% cash conversion from sales, and no debt. Although sales volume has taken a hit, they will be here with strength to take advantage of the rebound.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Kulicke and Soffa may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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