Screened 2026-08-27 · the tape above runs as of 22:12 UTC · 11 Sep · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its distribution label.
PDF Solutions, Inc. holds its Distribution at $46.15. The statistical read favours the sellers, held for 23 days.
As held on the ledger · 2026-08-27
Phase
Distribution · caution
Quantitative state
The statistical read favours the sellers, held for 23 days
Price at the screen
$46.15
Valuation
184.60 trailing · 28.34 forward price to earnings
Values screen
PASS· score 70.0
Beta
1.65
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
17.39%
Below 33%
Interest-bearing debt is just 17.4% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
29.89%
Below 49%
Money owed to the company is 29.9% of assets, under the 49% limit.
Pass
Revenue purity
0.60%
Below 5%
Only 0.6% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-08-27 screen. The gold marker is the market price at the same screen. A 12.5% margin of safety to the base estimate.
Third-party analyst targets: 6 covering, consensus Strong Buy. The average target sits +33% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-08-27 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Chip design tools trading above fair value
Picture the delicate process of squeezing more performance from every silicon wafer, where PDF Solutions supplies the software and measurement gear that helps fabs fine tune designs. Yet the current price sits just above our fair value with zero margin of safety, and the opportunity rating stays at none. Revenue is growing at 26 percent, but that alone does not justify the stretch.
Forward earnings sit on a 32.9 times multiple while profit margins and return on equity both linger at just 3 percent. Analyst targets point higher, yet the thin returns on capital leave little room for error if growth slows or competition intensifies. The ethical screen clears without issue, which removes one layer of concern but does nothing to fix the valuation gap.
High multiples on low profitability often signal optimism that has already run ahead of results. Currency moves and customer concentration in the semiconductor supply chain add further volatility that the balance sheet must absorb. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
PDFS trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 9.8% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 185%. Our forward projection puts the odds of a 10% gain over the next month near 30%. The street (4 analysts) rates it strong buy, with a mean price target of $54.
2026-08-08Markup$51.14-20.3%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 20.3% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 185%. Our forward projection puts the odds of a 10% gain over the next month near 30%. The street (4 analysts) rates it strong buy, with a mean price target of $54.
2026-07-18Markup$64.14+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 57% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 185%. Our forward projection puts the odds of a 10% gain over the next month near 30%. The street (4 analysts) rates it strong buy, with a mean price target of $54.
2026-07-03Markup$64.14+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markup$64.14Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.