BE Semiconductor (BESI) AI Stock Analysis

• Market Cap: €9.74B
• Dividend Yield: 1.82%
• Average Volume (3M): 393.19K
• Price to Earnings (P/E): 56.5
• Beta (1Y): 1.78
• Revenue Growth: 3.75%
• EPS Growth: 0.10%
• Country: NL
• Employees: 1,820
• Sector: Technology
• Sector Strength: 85
• Industry: Semiconductors
• EPS (TTM): 0.40
• Shares Outstanding: 81,146,736
• 10 Day Avg. Volume: 325,484
• 30 Day Avg. Volume: 393,191
• 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: €135.63
• Price Target Upside: 13.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 53 Neutral
• Price Target: €121.00 ▲(1.04% Upside)

BE Semiconductor's overall stock score is primarily influenced by its strong profitability and cash flow management. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential bearish momentum. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Advanced Packaging

Advanced packaging for AI offsets order dip, with Q3 recovery led by hybrid bonding and flip chip.

Financial Targets

BESI raised its long-term revenue and margin targets, indicating a more optimistic outlook for financial performance.

Market Growth

The company's expectation for an expansion in AI deployment across various markets suggests potential growth opportunities.

Negative Factors

Market Expectations

The addressable market for hybrid bonding tools is unlikely to meet the company's expectations.

Order Intake

The company received order intake of €128mn, down 3% qoq and below consensus, primarily due to ongoing weakness in mainstream computing and mobile applications.

Revenue Decline

The quarterly reported revenues were down 2% yoy principally due to weakness in mobile end markets, partially offset by growth in hybrid bonding shipments.

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 presents a solid financial position with strong profitability margins and efficient cash flow management. However, the declining revenue trend and decreasing stockholders' equity warrant careful monitoring.

Income Statement

BE Semiconductor showed a stable Gross Profit Margin of 63.7% for TTM, with a solid Net Profit Margin of 29.7%. Revenue growth has been a challenge, with a noticeable decline of about 16.3% from 2022 to 2023. The EBIT and EBITDA margins are strong, indicating efficient management of operating expenses, however, the declining revenue trend needs attention.

Balance Sheet

The company maintains a healthy balance sheet with a Debt-to-Equity Ratio of 1.05 for TTM, reflecting a moderate leverage level. The Equity Ratio stands at 41.4%, indicating a good proportion of equity financing. Return on Equity is robust at 35.0%, but the company's stockholders' equity has seen a decline, which could pose risks if not stabilized.

Cash Flow

BE Semiconductor reports a strong Free Cash Flow to Net Income ratio of 0.90 for TTM, highlighting consistent cash generation. However, the Operating Cash Flow has decreased by 8.5% from the previous year. Despite this, the company manages its capital expenditures effectively, maintaining solid Free Cash Flow growth.

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	239.12M	310.69M	332.37M	155.63M
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	413.48M	491.69M	451.39M	375.41M
Total Debt	540.51M	540.82M	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: Positive
• Last Price: 119.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:BESI, the sentiment is Positive. The current price of 119.75 is above the 20-day moving average (MA) of 119.19, below the 50-day MA of 122.53, and above the 200-day MA of 115.16, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 56.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:BESI.

BE Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
BESI	53 Neutral	€9.74B	56.49	42.88%	1.82%	3.75%	0.10%
0NX3	―	€19.93B	38.27	15.11%	―	―	―
0QB8	―	€252.22B	26.91	58.25%	―	―	―
0NNU	―	€594.81M	28.46	29.06%	3.47%	―	―
0NO1	―	€1.43B	21.94	7.75%	―	―	―
THEON	64 Neutral	€1.79B	24.71		2.20%	―	―