Stock Analysis

Should You Consider BE Semiconductor Industries N.V. (AMS:BESI)?

I've been keeping an eye on BE Semiconductor Industries N.V. (AMS:BESI) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe BESI has a lot to offer. Basically, it is a company with impressive financial health as well as a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on BE Semiconductor Industries here.

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High growth potential with adequate balance sheet

BESI is an attractive stock for growth-seeking investors, with an expected earnings growth of 28% in the upcoming year which is expected to flow into an impressive return on equity of 55% over the next couple of years. BESI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that BESI manages its cash and cost levels well, which is a key determinant of the company’s health. BESI seems to have put its debt to good use, generating operating cash levels of 0.61x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

ENXTAM:BESI Past and Future Earnings, September 21st 2019
ENXTAM:BESI Past and Future Earnings, September 21st 2019

Next Steps:

For BE Semiconductor Industries, I've put together three essential aspects you should look at:

  1. Historical Performance: What has BESI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is BESI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BESI is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BESI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

About ENXTAM:BESI

BE Semiconductor Industries

Develops, manufactures, markets, sells, and services semiconductor assembly equipment for the semiconductor and electronics industries in the Netherlands, Switzerland, Austria, Singapore, Malaysia, and internationally.

Exceptional growth potential with excellent balance sheet.

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