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BE Semiconductor (NL:BESI)
:BESI

BE Semiconductor (BESI) AI Stock Analysis

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BE Semiconductor

(LSE:BESI)

Rating:74Outperform
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 (BESI) vs. iShares MSCI Netherlands ETF (EWN)

BE Semiconductor Business Overview & Revenue Model

Company DescriptionBE 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 MoneyBE 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
75
Positive
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
70
Positive
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
80
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
605.30M607.47M578.86M722.87M749.30M433.62M
Gross Profit
385.69M395.94M375.79M443.07M446.82M258.57M
EBIT
194.14M195.59M213.39M294.12M317.58M149.86M
EBITDA
226.54M224.19M239.12M310.69M332.37M155.63M
Net Income Common Stockholders
179.52M181.99M177.08M240.65M282.42M132.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
685.74M342.32M413.48M491.69M451.39M375.41M
Total Assets
1.24B1.23B896.55M1.14B1.14B911.36M
Total Debt
538.10M540.82M319.16M342.88M312.48M409.88M
Net Debt
132.37M198.50M130.68M-148.80M-138.92M34.48M
Total Liabilities
725.62M733.21M475.14M506.65M524.77M540.13M
Stockholders Equity
513.34M501.26M421.41M628.53M619.27M371.23M
Cash FlowFree Cash Flow
162.37M169.61M180.55M243.48M249.50M140.16M
Operating Cash Flow
185.26M201.08M208.57M271.87M277.85M162.02M
Investing Cash Flow
-94.63M-136.48M-72.95M16.32M-24.84M-115.44M
Financing Cash Flow
81.38M88.67M-439.80M-247.68M-182.07M51.85M

BE Semiconductor Technical Analysis

Technical Analysis Sentiment
Positive
Last Price125.90
Price Trends
50DMA
102.65
Positive
100DMA
106.36
Positive
200DMA
110.62
Positive
Market Momentum
MACD
4.50
Negative
RSI
71.07
Negative
STOCH
80.08
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€9.91B55.6936.13%1.75%2.29%-1.00%
66
Neutral
$4.47B12.225.40%3.65%4.14%-12.00%
€10.20B21.3310.15%3.39%
€25.27B52.7513.66%0.58%
€257.64B30.0155.62%0.96%
€2.82B8.0611.61%6.96%
€1.59B15.0411.59%3.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:BESI
BE Semiconductor
125.90
-24.50
-16.29%
GB:0A00
Akzo Nobel NV
58.45
2.17
3.86%
GB:0NX3
ASM International NV
519.40
-168.50
-24.49%
GB:0QB8
ASML Holding NV
664.60
-301.13
-31.18%
GB:0RHI
Signify NV
22.42
1.02
4.77%
GB:0NO1
TKH Group N.V.
37.58
-1.26
-3.24%
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.