BE Semiconductor (BESI) AI Stock Analysis

• Market Cap: €11.51B
• Dividend Yield: 1.71%
• Average Volume (3M): 504.84K
• Price to Earnings (P/E): 76.3
• Beta (1Y): 1.81
• Revenue Growth: -5.75%
• EPS Growth: -17.63%
• Country: NL
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.32
• Shares Outstanding: 81,146,736
• 10 Day Avg. Volume: 587,283
• 30 Day Avg. Volume: 504,841
• PEG Ratio: 43.58
• Price to Book (P/B): 20.82
• Price to Sales (P/S): 17.18
• P/FCF Ratio: 61.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €152.75
• Price Target Upside: 20.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €133.00 ▲(4.60% Upside)

BE Semiconductor's overall stock score is primarily impacted by its strong profitability and cash flow management, which are offset by declining revenue growth and high leverage. Technical analysis indicates bearish momentum, and the stock appears overvalued with a high P/E ratio. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Cash Flow Management

Strong cash flow management indicates the company's ability to efficiently convert earnings into cash, supporting operational stability and investment capacity.

Profitability

High profitability margins demonstrate effective cost management and competitive pricing power, ensuring sustained financial health.

Operational Efficiency

Strong EBIT and EBITDA margins reflect efficient operations, allowing the company to maintain profitability despite revenue challenges.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth suggests market challenges and could impact future profitability and market share if not addressed.

High Leverage

Increased leverage can strain financial flexibility and elevate risk, potentially affecting the company's ability to invest in growth opportunities.

Negative Revenue Trend

Ongoing negative revenue trends highlight potential market and competitive pressures, necessitating strategic adjustments to sustain growth.

BE Semiconductor Business Overview & Revenue Model

Company Description

BE Semiconductor Industries N.V. develops, manufactures, markets, sells, and services semiconductor assembly equipment for the semiconductor and electronics industries worldwide. The company's principal products include die attach equipment, such as single chip, multi chip, multi module, flip chip, thermal compression bonding, fan out wafer level packaging, hybrid and embedded bridge die bonding, and die sorting systems; and packaging equipment, including conventional, ultra thin, and wafer level molding, as well as trim and form, and singulation systems. Its principal products also comprise plating equipment comprising tin, copper, and precious metal and solar plating systems, as well as related process chemicals; and tooling, conversion kits, spare parts, and other services. The company's principal brand names include Datacon, Esec, Fico, and Meco. It offers its products primarily to multinational chip manufacturers, assembly subcontractors, and electronics and industrial companies. The company was incorporated in 1995 and is headquartered in Duiven, the Netherlands.

How the Company Makes Money

BESI generates revenue primarily through the sale of its semiconductor packaging and assembly equipment, which includes systems for die bonding, wire bonding, and encapsulation. The company also earns money from providing maintenance, support services, and spare parts for its equipment, which creates a recurring revenue stream. Additionally, BESI engages in research and development to innovate and enhance its product offerings, thus attracting new customers and retaining existing ones. Key partnerships with major semiconductor manufacturers and technology firms further contribute to its earnings by enabling BESI to expand its market reach and leverage collaborative development opportunities.

BE Semiconductor Financial Statement Overview

Summary

BE Semiconductor shows strong profitability with high margins and solid cash flow management. However, the decline in revenue growth and increased leverage pose financial risks.

Income Statement

BE Semiconductor's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 50.8%, reflecting a challenging market environment. However, the company maintains strong profitability with a gross profit margin of 63.3% and a net profit margin of 28.2%. The EBIT and EBITDA margins are also robust at 33.9% and 38.8%, respectively, indicating efficient cost management. Despite the revenue decline, the company remains profitable, but the negative growth trend is a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.51 in the TTM period, indicating increased leverage, which could pose financial risks. The return on equity is strong at 36.9%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, limiting a full assessment of asset financing. The increased leverage and reduced equity base compared to previous years suggest potential financial stability concerns.

Cash Flow

Cash flow analysis shows positive trends with a 6.2% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is healthy at 1.44, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.84 suggests efficient conversion of earnings into cash. Overall, the company demonstrates solid cash flow management, although the growth rate has slowed compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	602.23M	607.47M	578.86M	722.87M	749.30M	433.62M
Gross Profit	381.12M	395.94M	375.79M	443.07M	446.82M	258.57M
EBITDA	233.81M	224.19M	245.09M	317.11M	332.37M	159.96M
Net Income	169.62M	181.99M	177.08M	240.65M	282.42M	132.28M
Balance Sheet
Total Assets	1.07B	1.23B	896.55M	1.14B	1.14B	911.36M
Cash, Cash Equivalents and Short-Term Investments	330.17M	342.32M	188.48M	491.69M	451.39M	375.41M
Total Debt	540.51M	544.71M	319.16M	342.88M	312.48M	409.88M
Total Liabilities	710.48M	733.21M	475.14M	506.65M	524.77M	540.13M
Stockholders Equity	356.78M	501.26M	421.41M	628.53M	619.27M	371.23M
Cash Flow
Free Cash Flow	172.49M	169.61M	180.55M	243.48M	249.50M	140.16M
Operating Cash Flow	206.34M	201.08M	208.57M	271.87M	277.85M	162.02M
Investing Cash Flow	-75.80M	-136.48M	-72.95M	16.32M	-24.84M	-115.44M
Financing Cash Flow	71.26M	88.67M	-439.80M	-247.68M	-182.07M	51.85M

BE Semiconductor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:BESI, the sentiment is Negative. The current price of 127.15 is below the 20-day moving average (MA) of 140.03, below the 50-day MA of 134.76, and above the 200-day MA of 117.01, indicating a neutral trend. The MACD of -1.97 indicates Positive momentum. The RSI at 34.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:BESI.

BE Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	76 Outperform	€334.77B	36.16	53.85%	0.76%	22.77%	37.62%
NEDAP	76 Outperform	€660.33M	31.56	29.06%	3.33%	4.11%	22.38%
ASM	74 Outperform	€27.25B	35.02	21.56%	0.61%	19.12%	42.78%
TWEKA	71 Outperform	€1.55B	24.38	7.75%	3.95%	-3.59%	-46.68%
THEON	66 Neutral	€2.05B	28.13	―	1.97%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BESI	53 Neutral	€11.51B	76.27	35.84%	1.71%	-5.75%	-17.63%