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PDFSPDF Solutions, Inc.
$51.63$2.1B
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  3. PDFS
  4. Financial Ratios

PDF Solutions, Inc. (PDFS) Financial Ratios

Latest Ratios: P/E Ratio -3167.5x · EV/EBITDA 121.9x · ROE -0.2%. (2000–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

PDFS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.1B$1.1B$1.1B$1.3B$1.1B$1.2B$744M$547M$271M$503M$731M
Enterprise Value$2.1B$1.2B$972M$1.2B$952M$1.2B$722M$459M$175M$402M$615M
P/E Ratio →-3167.48—270.80403.26——————80.54
P/S Ratio9.415.125.897.557.1610.638.456.403.164.946.81
P/B Ratio7.494.144.305.475.075.383.172.791.362.543.68
P/FCF———400.4644.866213.7750.2439.001221.551734.47—
P/OCF85.6946.64108.9885.7132.94278.2534.1722.2620.3347.70365.66

P/E links to full P/E history page with 30-year chart

PDFS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—5.285.426.996.4110.448.215.372.043.945.72
EV / EBITDA121.9367.27241.79225.46253.13————68.7035.41
EV / EBIT358.40161.561039.55——————2114.3747.43
EV / FCF———370.7740.136104.9948.7632.72788.721385.27—

PDFS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin74.0%74.0%69.8%68.8%67.8%60.2%58.2%60.9%50.1%53.4%58.6%
Operating Margin2.7%2.7%-0.3%-0.7%-2.0%-15.0%-19.0%-8.7%-11.6%0.2%12.1%
Net Profit Margin-0.3%-0.3%2.3%1.9%-2.3%-19.3%-45.8%-6.3%-9.0%-1.3%8.5%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-0.2%-0.2%1.7%1.4%-1.6%-9.5%-18.7%-2.7%-3.9%-0.7%4.9%
ROA-0.2%-0.2%1.3%1.1%-1.2%-7.7%-15.3%-2.3%-3.4%-0.6%4.4%
ROIC1.9%1.9%-0.3%-0.7%-1.5%-6.1%-7.8%-5.3%-7.4%0.2%14.9%
ROCE1.9%1.9%-0.2%-0.5%-1.3%-7.0%-7.3%-3.6%-4.8%0.1%6.8%

PDFS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.280.280.020.030.030.030.040.05———
Debt / EBITDA4.464.461.291.201.95——————
Net Debt / Equity—0.13-0.35-0.41-0.53-0.09-0.09-0.45-0.48-0.51-0.59
Net Debt / EBITDA2.002.00-21.25-18.06-29.86————-17.32-6.73
Debt / FCF———-29.69-4.73-108.78-1.48-6.27-432.83-349.20—
Interest Coverage1.811.810.17———-13.23—-19.02—1295.60

PDFS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.282.283.403.893.324.304.585.278.058.299.19
Quick Ratio2.282.283.403.893.324.304.585.278.058.299.19
Cash Ratio0.590.591.902.672.393.203.443.494.925.126.31
Asset Turnover—0.520.570.570.530.410.310.360.380.450.48
Inventory Turnover———————————
Days Sales Outstanding—138.21149.7998.83103.60131.75141.53173.37219.40206.25163.57

PDFS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——0.4%0.2%——————1.2%
FCF Yield———0.2%2.2%0.0%2.0%2.6%0.1%0.1%—
Buyback Yield0.0%0.0%0.7%0.1%2.1%0.4%0.0%1.8%1.9%2.7%0.3%
Total Shareholder Yield0.0%0.0%0.7%0.1%2.1%0.4%0.0%1.8%1.9%2.7%0.3%
Shares Outstanding—$39M$39M$39M$37M$37M$34M$32M$32M$32M$32M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Geopolitical export control exposure

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Premium Pricing Reflects Growth Expectations

According to current market data, PDFS trades at a forward P/E of 50.51 and a P/S ratio of 11.48, suggesting that investors are pricing in significant future expansion rather than current GAAP profitability, which remains constrained by heavy R&D and stock-based compensation expenses.

The valuation multiples appear to reflect a market expectation that the company will successfully transition into a high-margin software-as-a-service provider. Investors should monitor whether the current forward P/E multiple can be sustained if the company fails to demonstrate a clear path toward GAAP earnings expansion in the coming quarters.

Capital Efficiency Remains Subdued Historically

Based on reported financial figures, PDFS has struggled to generate meaningful returns on invested capital, with ROIC hovering at a modest 1.7% as of 2026Q1, indicating that the company is currently failing to compound capital at rates exceeding its likely cost of equity.

The low ROIC suggests that the significant capital deployed into DFI hardware and strategic acquisitions has yet to yield the expected operational efficiency gains. This trend warrants further investigation into whether the company's heavy investment phase is a temporary drag or a structural limitation of its current business model.

Working Capital Friction Impedes Cash

As evidenced by the latest quarterly data, the company's DSO has climbed to 134 days, a significant increase from the 96 days observed in 2023Q4, which suggests that PDFS is experiencing growing friction in its cash conversion cycle and potential delays in customer payments.

The lengthening collection period may indicate that the company is granting more lenient credit terms to secure large-scale foundry contracts or that it is facing administrative delays in its complex service-based billing. This trend should be monitored closely as it directly impacts the company's ability to self-fund its R&D-heavy growth strategy.

Conservative Leverage Supports Financial Flexibility

According to recent balance sheet disclosures, PDFS maintains a healthy current ratio of 2.34 and a low debt-to-equity ratio of 0.03, providing a robust liquidity buffer that appears sufficient to navigate potential sector-specific downturns or geopolitical disruptions in its key Asian markets.

The company's minimal reliance on debt provides a strategic advantage, allowing it to maintain R&D spending even during periods of revenue volatility. This fortress-like balance sheet structure appears to be a deliberate management choice to mitigate the risks inherent in the cyclical semiconductor capital equipment industry.

GAAP Net Income Misleads Investors

The most commonly misapplied metric for PDFS is GAAP net income, which frequently obscures the company's underlying economic performance due to significant non-cash stock-based compensation and the lumpy nature of revenue recognition associated with its transition from gain-share royalties to subscription-based software contracts.

Investors should instead focus on adjusted EBITDA and free cash flow, which provide a more accurate view of the company's ability to generate cash from its core operations. Relying on GAAP net income may lead to an overly pessimistic assessment of the company's long-term value-creation potential.

Download Financial Ratios Data

Includes 30+ ratios · 26 years · Updated daily

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PDFS — Frequently Asked Questions

Quick answers to the most common questions about buying PDFS stock.

What is PDF Solutions, Inc.'s P/E ratio?

PDF Solutions, Inc.'s current P/E ratio is -3167.5x. The historical average is 50.1x.

What is PDF Solutions, Inc.'s EV/EBITDA?

PDF Solutions, Inc.'s current EV/EBITDA is 121.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.0x.

What is PDF Solutions, Inc.'s ROE?

PDF Solutions, Inc.'s return on equity (ROE) is -0.2%. The historical average is -3.8%.

Is PDFS stock overvalued?

Based on historical data, PDF Solutions, Inc. is trading at a P/E of -3167.5x. Compare with industry peers and growth rates for a complete picture.

What are PDF Solutions, Inc.'s profit margins?

PDF Solutions, Inc. has 74.0% gross margin and 2.7% operating margin.

How much debt does PDF Solutions, Inc. have?

PDF Solutions, Inc.'s Debt/EBITDA ratio is 4.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.