BE Semiconductor (BESIY) AI Stock Analysis

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BE Semiconductor

(OTC:BESIY)

Rating:67Neutral

Price Target:

$158.00

▲(11.42%Upside)

BESIY's overall score is driven by its strong financial performance and positive technical indicators, although valuation concerns and mixed earnings call insights temper the outlook. The company's strengths in profitability and strategic investments are balanced by challenges in certain market segments and overvaluation signals.

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

Market Cap

$11.43B

Dividend Yield1.75%

Average Volume (3M)39.00

Price to Earnings (P/E)58.4

Beta (1Y)1.17

Revenue Growth1.34%

EPS Growth-1.82%

CountryUS

Employees1,820

SectorTechnology

Sector Strength82

IndustrySemiconductors

Share Statistics

EPS (TTM)0.45

Shares Outstanding81,146,736

10 Day Avg. Volume0

30 Day Avg. Volume39

Financial Highlights & Ratios

PEG Ratio-0.99

Price to Book (P/B)6.89

Price to Sales (P/S)0.00

P/FCF Ratio17.79

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 Dutch multinational company that specializes in the development, manufacturing, and marketing of semiconductor assembly equipment for the global semiconductor and electronics industries. The company operates primarily in the semiconductor equipment sector, providing advanced packaging, die attach, and plating technology solutions. Its products are critical in the assembly processes of a wide range of semiconductor devices, including those used in computing, automotive, industrial, and consumer electronics applications.

How the Company Makes MoneyBE Semiconductor makes money by designing, manufacturing, and selling semiconductor assembly equipment. The company's revenue model is primarily centered on the sale of its advanced packaging and die attach equipment, which are essential for semiconductor manufacturers to produce high-performance chips. Key revenue streams include equipment sales, after-sales services, and spare parts. Additionally, the company benefits from long-term relationships and partnerships with leading semiconductor manufacturers, which ensure a steady demand for its products and services. BESIY's strategic focus on innovation and technology leadership also allows it to command premium prices for its cutting-edge solutions, contributing significantly to its earnings.

BE Semiconductor Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 35.04%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with strong order growth and strategic investments balanced by decreased net income and challenges in key markets. While there are promising developments in AI and hybrid bonding, the ongoing challenges in mobile and automotive sectors and increased expenses pose concerns.

Q1-2025 Updates

Positive Updates

Stable Revenue and Strong Cash Flow

Besi reported Q1 2025 revenue of €144.1 million, a slight decrease of 1.5% year-over-year, with strong growth in hybrid bonding and AI-related applications. Cash flow generation remained positive with net cash increasing by 10.8% to €159.4 million.

Increase in Orders

Orders increased by 3.3% compared to Q1 2024 and 8.2% compared to Q4 2024, driven by Asian subcontractors and AI-related data center applications.

Significant Shareholder Returns

Besi repurchased €22.1 million of its shares and shareholders approved a €172.5 million dividend, equivalent to €2.18 per share.

Strategic Investment by Applied Materials

Applied Materials acquired a 9% ownership stake in Besi, reinforcing their collaboration on hybrid bonding technology.

Negative Updates

Decreased Net Income

Net income decreased by 7.4% to €31.5 million compared to the first quarter of last year due to lower revenue and gross margins.

Challenges in Mobile and Automotive Markets

Continued weakness in mobile, automotive, and Chinese end-user markets negatively impacted overall performance.

Increased Operating Expenses

Q1 2025 operating expenses increased by 10.3% sequentially, attributed to higher consulting costs.

Gross Margin Pressure

Gross margins trended towards the lower end of the target range due to a less favorable product mix and adverse foreign exchange movements.

Company Guidance

In the recent call discussing Besi's first quarter results for 2025, the company provided guidance reflecting the complex dynamics of the assembly equipment market. Besi reported that their revenue for Q1 2025 was €144.1 million, a slight decrease of 1.5% compared to the same period last year, primarily due to weaknesses in the mobile and automotive markets. However, they noted a 3.3% increase in orders year-over-year, driven by demand from Asian subcontractors and AI-related data center applications. For Q2 2025, Besi forecasts that revenue will remain flat, with a potential fluctuation of 10%, and gross margins are expected to be between 62% and 64%. Operating expenses are anticipated to decrease by up to 10% compared to Q1, primarily due to reduced consulting costs. The company emphasized the uncertainty surrounding tariffs as a factor impacting the timing of a mainstream market recovery, but expressed optimism about the strong demand for advanced packaging, particularly for AI applications, which is expected to grow significantly in the coming years.

BE Semiconductor Financial Statement Overview

Summary

BE Semiconductor demonstrates strong financial health with robust profitability and effective asset management, though cash flow management and capital structure can be improved.

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

Positive

Last Price141.81

Price Trends

50DMA

119.97

Positive

100DMA

116.48

Positive

200DMA

119.94

Positive

Market Momentum

MACD

6.99

Negative

RSI

64.74

Neutral

STOCH

82.57

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BESIY, the sentiment is Positive. The current price of 141.81 is above the 20-day moving average (MA) of 131.35, above the 50-day MA of 119.97, and above the 200-day MA of 119.94, indicating a bullish trend. The MACD of 6.99 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 82.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BESIY.

BE Semiconductor Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	80 Outperform	$6.80B	35.09	23.87%	―	41.03%	51.42%
ONTO	74 Outperform	$4.68B	21.71	11.83%	―	21.23%	56.90%
LSCC	73 Outperform	$6.93B	135.72	7.39%	―	-29.54%	-76.42%
AMKR	72 Outperform	$4.98B	15.80	7.76%	1.64%	-1.93%	-15.55%
BESIY	67 Neutral	$11.43B	58.36	35.95%	1.75%	1.34%	-1.82%
TSEM	64 Neutral	$4.41B	21.86	7.88%	―	5.22%	-58.99%
Sector *	62 Neutral	$31.72B	6.46	-12.45%	1.96%	5.62%	-22.66%

* Technology Sector Average

Performance Comparison

BESIY

BE Semiconductor

141.81

-15.95

-10.11%

AMKR

Amkor

20.16

-16.00

-44.25%

LSCC

Lattice Semiconductor

50.42

-6.23

-11.00%

ONTO

Onto Innovation

95.82

-117.58

-55.10%

NVMI

Nova

231.17

7.03

3.14%

TSEM

Tower

39.48

1.20

3.13%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.