BE Semiconductor (BESI) AI Stock Analysis

• Market Cap: €11.85B
• Dividend Yield: 1.49%
• Average Volume (3M): 483.71K
• Price to Earnings (P/E): 68.7
• Beta (1Y): 1.84
• Revenue Growth: 3.75%
• EPS Growth: 0.10%
• Country: NL
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.40
• Shares Outstanding: 81,146,736
• 10 Day Avg. Volume: 564,066
• 30 Day Avg. Volume: 483,715
• 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: €138.13
• Price Target Upside: -5.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: €157.00 ▲(7.28% Upside)

BE Semiconductor's stock score is driven by strong technical momentum and solid financial performance, despite concerns over high valuation and financial leverage. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Profitability

High profit margins and effective cash flow management indicate a robust business model, ensuring long-term financial health and operational efficiency.

Cash Flow Management

Positive cash flow growth and efficient conversion of earnings into cash highlight strong cash generation ability, crucial for sustaining operations and funding growth initiatives.

High Return on Equity

A high return on equity reflects effective use of shareholders' funds to generate profits, indicating strong management performance and potential for shareholder value creation.

Negative Factors

Increased Leverage

Increased leverage can lead to financial instability, limiting flexibility and increasing risk, especially in downturns or rising interest rate environments.

Decline in Revenue Growth

A significant decline in revenue growth indicates potential challenges in market demand or competitive positioning, which could affect long-term growth prospects.

Financial Stability Concerns

A reduced equity base, coupled with high leverage, raises concerns about financial stability, potentially impacting the company's ability to weather economic fluctuations.

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 and cash flow management with robust margins. However, declining revenue growth and increased leverage are concerns, impacting financial flexibility.

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	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	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: Positive
• Last Price: 146.35
• 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 146.35 is above the 20-day moving average (MA) of 126.73, above the 50-day MA of 120.64, and above the 200-day MA of 115.68, indicating a bullish trend. The MACD of 6.73 indicates Negative momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 88.63 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
ASML	78 Outperform	€342.75B	37.34	58.25%	0.76%	26.41%	40.19%
THEON	72 Outperform	€2.42B	33.18	―	1.50%	―	―
TWEKA	71 Outperform	€1.49B	23.54	7.75%	3.94%	-3.59%	-46.68%
ASM	67 Neutral	€26.86B	51.41	15.11%	0.54%	25.46%	-4.36%
NEDAP	67 Neutral	€610.38M	29.17	29.06%	3.31%	4.11%	22.38%
BESI	64 Neutral	€11.85B	68.68	42.88%	1.49%	3.75%	0.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%