BE Semiconductor (BESI) AI Stock Analysis

• Market Cap: €9.91B
• Dividend Yield: 1.75%
• Average Volume (3M): 484.89K
• Price to Earnings (P/E): 55.7
• Beta (1Y): 1.67
• Revenue Growth: 2.29%
• EPS Growth: -1.00%
• Country: NL
• Employees: 1,820
• Sector: Industrials
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 0.40
• Shares Outstanding: 81,146,736
• 10 Day Avg. Volume: 503,382
• 30 Day Avg. Volume: 484,886
• PEG Ratio: -1.03
• Price to Book (P/B): 7.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.42
• 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: €121.72
• Price Target Upside: -3.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: €137.00 ▲(8.82%Upside)

The overall stock score for BE Semiconductor is 74, driven by strong financial performance and technical indicators pointing to bullish momentum. However, the high valuation and declining revenue trends are significant concerns that could impact future growth. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Financial Performance

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

Growth Opportunities

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

Negative Factors

Future Projections

Reflecting the weak outlook, revenue and operating income estimates for 2025 have been lowered by 8.5% and 14.3% respectively.

Market Expectations

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

Valuation Concerns

Valuation is considered rich, as the current share price already accounts for significant growth expectations.

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

BE Semiconductor Industries makes money primarily through the sale of its advanced semiconductor assembly equipment and related services. The company's revenue model is driven by the demand for its high-precision and high-throughput packaging solutions, which are sold to semiconductor manufacturers and subcontractors worldwide. Key revenue streams include equipment sales, spare parts, and service contracts. BESI benefits from strategic partnerships with major semiconductor manufacturers and its ability to innovate and adapt to industry trends, such as the growing need for miniaturization and increased functionality in electronic devices. Additionally, the company leverages its global sales and service network to reach a diverse customer base across Asia, Europe, and North America, further enhancing its revenue potential.

BE Semiconductor Financial Statement Overview

Summary

Solid profitability with strong margins and efficient cash flow management. However, the declining revenue trend and reduced stockholders' equity are areas of concern.

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
605.30M	607.47M	578.86M	722.87M	749.30M	433.62M
	Gross Profit
385.69M	395.94M	375.79M	443.07M	446.82M	258.57M
	EBIT
194.14M	195.59M	213.39M	294.12M	317.58M	149.86M
	EBITDA
226.54M	224.19M	239.12M	310.69M	332.37M	155.63M
	Net Income Common Stockholders
179.52M	181.99M	177.08M	240.65M	282.42M	132.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
685.74M	342.32M	413.48M	491.69M	451.39M	375.41M
	Total Assets
1.24B	1.23B	896.55M	1.14B	1.14B	911.36M
	Total Debt
538.10M	540.82M	319.16M	342.88M	312.48M	409.88M
	Net Debt
132.37M	198.50M	130.68M	-148.80M	-138.92M	34.48M
	Total Liabilities
725.62M	733.21M	475.14M	506.65M	524.77M	540.13M
	Stockholders Equity
513.34M	501.26M	421.41M	628.53M	619.27M	371.23M
Cash Flow		Free Cash Flow
162.37M	169.61M	180.55M	243.48M	249.50M	140.16M
	Operating Cash Flow
185.26M	201.08M	208.57M	271.87M	277.85M	162.02M
	Investing Cash Flow
-94.63M	-136.48M	-72.95M	16.32M	-24.84M	-115.44M
	Financing Cash Flow
81.38M	88.67M	-439.80M	-247.68M	-182.07M	51.85M

BE Semiconductor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 125.9 is above the 20-day moving average (MA) of 111.48, above the 50-day MA of 102.65, and above the 200-day MA of 110.62, indicating a bullish trend. The MACD of 4.50 indicates Negative momentum. The RSI at 71.07 is Negative, neither overbought nor oversold. The STOCH value of 80.08 is Negative, 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
BESI	74 Outperform	€9.91B	55.69	36.13%	1.75%	2.29%	-1.00%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
0A00		€10.20B	21.33	10.15%	3.39%	―	―
0NX3		€25.27B	52.75	13.66%	0.58%	―	―
0QB8		€257.64B	30.01	55.62%	0.96%	―	―
0RHI		€2.82B	8.06	11.61%	6.96%	―	―
0NO1		€1.59B	15.04	11.59%	3.99%	―	―