Equity Research Analysis: PDF SOLUTIONS INC (PDFS)
|Blank Capital Research Unit|Spot: $33.26
Price$33.26
Composite Score52.5/100
RatingHOLD (3★)
Rank#1614 OF 7,333
Market Cap$1.0B
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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1614
Positioning
Market Dominance
Services
Computer Software
$1.0B
John K. Kibarian
PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services. It also provides design-for-inspection (DFI) Systems, such as DFI on-chip instruments; eProbe non-contactless E-beam tool; and Characterization Vehicle (CV) system.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = PDFS ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$PDFS PDF SOLUTIONS INC | 53 | 44 | 39 | 86 | 793.9x | 143.2x | 0.6% | 0.4% | 72.4% | 2.7% | 0.7% | 37.1% | 0.0% | 26.0x | $1.0B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
PDF SOLUTIONS INC (PDFS) receives a "Hold" rating with a composite score of 52.5/100. It ranks #1614 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for PDFS.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 44 | 43 | +1NEUTRAL |
| MOMENTUM | 86 | 94 | -8DRAG |
| VALUATION | 39 | 35 | +4NEUTRAL |
| INVESTMENT | 20 | 3 | +17ALPHA |
| STABILITY | 51 | 53 | -2NEUTRAL |
| SHORT INT | 43 | 38 | +5NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 7.6% vs WACC 9.3% (spread -1.7%)
GM 72% vs sector 65%, OM 3% vs sector 5%
Capital turnover 1.80x, R&D intensity 28.7%
Rev growth 37%, 10yr history
Interest coverage 3.9x, Net debt/EBITDA 5.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate PDF SOLUTIONS INC (PDFS) as a Hold with a composite score of 52.5/100 at a current price of $33.26. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
PDF SOLUTIONS INC holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 52.5/100 places it at rank #1614 in our full universe.
The near-term outlook is constructive, with revenue growing at 37% and momentum in the 86th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Medium
Standard
Fair Value
Gross margins of 72% signal strong pricing power.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 793.9x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
PDF SOLUTIONS INC represents a hold based on multi-factor quantitative performance.
Our model assigns PDF SOLUTIONS INC a Hold rating, with a composite score of 52.5/100 and 3 out of 5 stars. Ranked #1614 of 7,333 stocks, PDFS presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
PDFS's quality score of 44/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 0.6% (sector avg: 5.7%), gross margins of 72.4% (sector avg: 64.6%), net margins of 0.7% (sector avg: 2.8%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 39/100, PDFS appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 793.93x, an EV/EBITDA of 143.22x, a P/B ratio of 4.85x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
PDF SOLUTIONS INC's investment score of 20/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 37.1% vs. a sector average of 8.6% and a return on assets of 0.4% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
PDFS shows strong momentum characteristics with a score of 86/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 37.1% year-over-year, while a beta of 1.57 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 51/100, PDFS exhibits average financial resilience. Key stability metrics include a beta of 1.57 and a debt-to-equity ratio of 26.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 43/100 for PDFS suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 1.57), elevated leverage (D/E: 26.00x), small-cap liquidity risk. With a $1.0B market cap (small-cap), PDF SOLUTIONS INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
PDF SOLUTIONS INC is a small-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #1614 of 7,333 overall (78th percentile). Key comparisons include ROE of 0.6% trailing the 5.7% sector median and operating margins of 2.7% below the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While PDFS currently exhibits a HOLD profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Key factor gap
Momentum (86) vs Investment (20) — closing this gap could shift the rating.
EV/EBITDA 1121% ABOVE SECTOR MEDIAN
ROE 89% BELOW SECTOR MEDIAN
Gross Margin 12% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
PDF Solutions (PDFS) just reported record revenue for the fourth quarter and full year 2025, along with earnings per share that came in ahead of analyst expectations, and paired those results with 2026 revenue guidance. See our latest analysis for PDF Solutions. The market seems to be reacting positively to the earnings beat and 2026 guidance, with a 1 day share price return of 4.92% and 7 day share price return of 15.89% lifting the stock to US$33.69. However, the 1 year total shareholder...
Operator: Good day, everyone, and welcome to the PDF Solutions, Inc. conference call to discuss its financial results for the fourth quarter and year-end 2025 ending Wednesday, December 31, 2025.
In February 2026, PDF Solutions, Inc. reported that full-year 2025 revenue rose to US$219.02 million from US$179.47 million, while shifting from net income of US$4.06 million to a small net loss of US$0.64 million. The company also highlighted record fourth-quarter and annual revenues, its largest-ever acquisition of SecureWise, and guidance for 2026 revenue to grow in line with a 20% long-term target as it evolves into a broader semiconductor execution platform. Next, we’ll examine how PDF...
PDF Solutions Inc (PDFS) reports a 25% revenue increase, strategic acquisitions, and challenges in data integration during its Q4 2025 earnings call.
PDF Solutions (PDFS) Q4 2025 earnings: record revenue, AI-driven semiconductor platform growth, secureWISE integration, 2026 20% outlook—read more.