Based on the aggregated intelligence of 170,000-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 respected four-star ranking.

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

Kulicke and Soffa facts

Headquarters (Founded)

Singapore (1951)

Market Cap

$792.7 million


Semiconductor equipment

Trailing-12-Month Revenue

$836.1 million


CEO Bruno Guilmart (since 2010)

CFO Jonathan Chou (since 2010)

Return on Capital (Average, Past 3 Years)



$281.8 million / $101.8 million



Intel (Nasdaq: INTC)

Taiwan Semiconductor Manufacturing (NYSE: TSM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 94% of the 256 members who have rated Kulicke and Soffa believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars 1picks and MagicDiligence, both of whom are ranked in the top 20% of our community.

Just last month, 1picks tapped Kulicke and Soffa as a potential bargain opportunity: "At five times earnings, looks cheap. Undervalued ... potential takeover target."

In fact, Kulicke and Soffa even trades at a particularly paltry forward P/E of 6.4. That represents a discount to much larger peers AMD (10.1), Intel (9.1), and Taiwan Semi (11.9).

CAPS All-Star MagicDiligence elaborates on the opportunity:

K&S's specialty is selling tools for the bonding process, where the semiconductor device itself is connected with the containing plastic package. Semi equipment is a very cyclical business, and we are coming off a boom year, where K&S more than tripled revenues from 2009. The company has a good balance sheet and an emerging opportunity in LED bonders.

What do you think about Kulicke and Soffa, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Intel. Try any of our Foolish newsletter services free for 30 days.

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