BE Semiconductor (BESIY) AI Stock Analysis

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BE Semiconductor

(OTC:BESIY)

61Neutral

BE Semiconductor's overall score reflects a solid financial foundation with strong profitability and effective asset management. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. While the company benefits from a positive outlook in AI applications, declining orders and challenges in mainstream markets temper growth prospects.

BE Semiconductor (BESIY) vs. S&P 500 (SPY)

Market Cap

$7.27B

Dividend Yield2.23%

Average Volume (3M)892.00

Price to Earnings (P/E)35.2

Beta (1Y)1.46

Revenue Growth5.01%

EPS Growth0.67%

CountryUS

Employees1,812

SectorTechnology

Sector Strength40

IndustrySemiconductors

Share Statistics

EPS (TTM)2.49

Shares Outstanding81,146,736

10 Day Avg. Volume2,677

30 Day Avg. Volume892

Financial Highlights & Ratios

PEG Ratio52.45

Price to Book (P/B)N/A

Price to Sales (P/S)9.12

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

BE Semiconductor Business Overview & Revenue Model

Company DescriptionBE Semiconductor Industries N.V. (BESIY) is a leading global supplier in the semiconductor equipment sector, focusing on the development, manufacturing, and sales of advanced packaging equipment for the semiconductor industry. The company's core products include systems for chip bonding, packaging, and plating, which are essential for semiconductor production and the miniaturization of electronic devices. BESIY serves a diverse clientele, including manufacturers of advanced integrated circuits and microelectronics across various industries.

How the Company Makes MoneyBE Semiconductor Industries (BESIY) generates revenue primarily through the sale of its semiconductor packaging equipment and services. Their key revenue streams include the sale of die attach, packaging, and plating equipment used in the semiconductor manufacturing process. BESIY also earns through service contracts, spare parts, and equipment upgrades. The company's strategic partnerships with leading semiconductor manufacturers and its global reach in terms of sales and service networks significantly contribute to its earnings. Additionally, BESIY invests in research and development to innovate and maintain a competitive edge, thereby enhancing its ability to attract new customers and retain existing ones.

BE Semiconductor Financial Statement Overview

Summary

BE Semiconductor exhibits strong financial health with solid profitability and effective asset management. Revenue growth and operational margins are a highlight, though there is room for improvement in cash flow management and capital structure. The company's financial stability is well-supported by a strong equity base and moderate leverage, positioning it favorably within the Semiconductors and Equipment industry.

Income Statement

Positive

BE Semiconductor has demonstrated a solid financial performance with a consistent increase in revenue, achieving a revenue growth rate of 4.95% from 2023 to 2024. The company maintains strong profitability, reflected by a healthy gross profit margin of 65.17% and a net profit margin of 29.96% in 2024. The EBIT margin stands at 32.20%, while the EBITDA margin is 36.91%, indicating efficient operational management. Despite a slight decline in EBIT and EBITDA from 2023, profitability remains robust.

Balance Sheet

Positive

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 1.08, suggesting a balanced approach to leveraging. The return on equity is strong at 36.31%, highlighting effective use of shareholder funds. However, the equity ratio is 40.61%, indicating moderate leverage with room for improving capital structure stability. The increase in total assets and stockholders' equity reflects a positive growth trajectory.

Cash Flow

Positive

Cash flow analysis reveals a slight decrease in operating cash flow from the previous year, yet free cash flow remains positive at €169.61 million. The free cash flow to net income ratio is 0.93, showing a robust capacity to generate cash relative to net income. There is a noticeable decline in free cash flow growth, highlighting an area for improvement in cash generation efficiency.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
607.47M	578.86M	722.87M	749.30M	433.62M
	Gross Profit
395.94M	375.79M	443.07M	446.82M	258.57M
	EBIT
195.59M	213.39M	294.12M	317.58M	149.86M
	EBITDA
224.19M	221.10M	300.81M	332.37M	155.63M
	Net Income Common Stockholders
181.99M	177.08M	240.65M	282.42M	132.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
342.32M	413.48M	491.69M	451.39M	375.41M
	Total Assets
1.23B	896.55M	1.14B	1.14B	911.36M
	Total Debt
540.82M	319.16M	342.88M	312.48M	409.88M
	Net Debt
198.50M	130.68M	-148.80M	-138.92M	34.48M
	Total Liabilities
733.21M	475.14M	506.65M	524.77M	540.13M
	Stockholders Equity
501.26M	421.41M	628.53M	619.27M	371.23M
Cash Flow		Free Cash Flow
169.61M	180.55M	243.48M	249.50M	140.16M
	Operating Cash Flow
201.08M	208.57M	271.87M	277.85M	162.02M
	Investing Cash Flow
-136.48M	-72.95M	16.32M	-24.84M	-115.44M
	Financing Cash Flow
88.67M	-439.80M	-247.68M	-182.07M	51.85M

BE Semiconductor Technical Analysis

Technical Analysis Sentiment

Negative

Last Price93.66

Price Trends

50DMA

113.65

Negative

100DMA

123.53

Negative

200DMA

127.96

Negative

Market Momentum

MACD

-3.25

Positive

RSI

39.11

Neutral

STOCH

6.93

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BESIY, the sentiment is Negative. The current price of 93.66 is below the 20-day moving average (MA) of 106.58, below the 50-day MA of 113.65, and below the 200-day MA of 127.96, indicating a bearish trend. The MACD of -3.25 indicates Positive momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 6.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BESIY.

BE Semiconductor Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTO	73 Outperform	$6.57B	32.84	11.01%	―	21.01%	65.27%
NVMI	73 Outperform	$5.61B	31.16	21.90%	―	29.83%	33.42%
AMKR	65 Neutral	$4.44B	12.59	8.73%	1.80%	-2.85%	-1.90%
TSEM	64 Neutral	$3.92B	18.20	8.17%	―	0.94%	-60.23%
LSCC	62 Neutral	$6.39B	95.47	8.71%	―	-30.90%	-76.39%
BESIY	61 Neutral	$7.27B	35.21	39.95%	2.23%	5.01%	0.67%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%

* Technology Sector Average

Performance Comparison

BESIY

BE Semiconductor

94.34

-56.50

-37.46%

AMKR

Amkor

16.54

-14.96

-47.49%

LSCC

Lattice Semiconductor

43.28

-31.48

-42.11%

ONTO

Onto Innovation

120.40

-63.72

-34.61%

NVMI

Nova

177.98

7.50

4.40%

TSEM

Tower

33.92

2.34

7.41%

BE Semiconductor Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -22.68% | Next Earnings Date: Apr 23, 2025

Earnings Call Sentiment Neutral

The call presented a mixed picture with strong financial metrics such as net income growth and shareholder returns, but it was offset by declining orders and revenue challenges in certain segments. The outlook for hybrid bonding and AI applications remains positive, though concerns in mainstream assembly markets persist.

Highlights

Net Income Increase

Q4 '24 net income of EUR59.3 million increased 26.7% versus the third quarter last year and 8% versus fourth quarter '23 due to net tax benefits.

Revenue Growth in AI Applications

For the year, revenue grew by approximately 5% to reach EUR607.5 million, driven by higher demand in AI-related hybrid bonding and photonics applications.

Strong Margins Maintained

Besi achieved gross operating and net margins of 65.2%, 32%, and 30% respectively in 2024, with a slight increase in gross margins due to a favorable advanced packaging product mix.

Significant Shareholder Returns

Besi distributed a total of EUR251.3 million in 2024 to shareholders, representing 41% of total revenue, including a cash dividend of EUR171.5 million and a share repurchase program.

Solid Liquidity Position

Besi ended the year with cash, cash equivalents, and deposits totaling EUR672.3 million, and a net cash position of EUR143.8 million, marking increases of 62.6% and 27.3% respectively versus year-end '23.

Lowlights

Overall Revenue Decline

Q4 revenue of EUR153.4 million was down 2% versus Q3 last year and 3.9% versus Q4 2023 due to lower demand for automotive applications.

Orders Decrease

Orders of EUR121.9 million decreased by 19.7% versus the third quarter last year and 26.7% versus the fourth quarter in '23, driven by lower bookings for hybrid bonding, photonics, and mainstream assembly applications.

Operating Income Decline

Operating income in the fourth quarter '24 decreased by 8.2% versus the third quarter last year, primarily due to lower revenue and adverse foreign exchange movements.

Challenges in Mainstream Assembly Markets

The mainstream assembly equipment market faced ongoing weakness, with expectations of a potential recovery not materializing in 2024.

Higher R&D and Operating Expenses

R&D spending increased by 31.7% in 2024, and operating expenses are forecasted to rise 10% to 20% in Q1 '25 due to higher strategic consulting costs.

Company Guidance

During Besi's fourth-quarter and full-year 2024 conference call, the company provided several metrics and guidance for 2025. Besi reported a revenue of EUR 153.4 million for Q4, down 2% from Q3 and 3.9% from Q4 2023, primarily due to decreased demand in automotive applications. Orders for the quarter were EUR 121.9 million, a 19.7% decrease from the previous quarter and a 26.7% decrease from Q4 2023. Despite these declines, net income for Q4 increased 26.7% versus Q3 and 8% from Q4 2023, reaching EUR 59.3 million, thanks to net tax benefits. For the full year, revenue grew by approximately 5% to EUR 607.5 million, driven by demand in AI-related hybrid bonding and photonics applications, with orders rising 7% to EUR 586.7 million. Besi achieved gross, operating, and net margins of 65.2%, 32%, and 30%, respectively, in 2024. Looking ahead, Besi anticipates 2025 Q1 revenue to decrease between 0% and 10% from Q4 2024, with gross margins expected to remain between 63% and 65%. Operating expenses are projected to rise by 10% to 20% due to higher strategic consulting costs. The company also highlighted a cautious optimism for 2025, expecting momentum in advanced AI applications to offset ongoing weaknesses in mainstream markets.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.