NasdaqGS:BRKS

Stock Analysis Report

Executive Summary

Brooks Automation, Inc. provides automation and cryogenic solutions for various markets.

Snowflake

Fundamentals

Reasonable growth potential with questionable track record.

Risks

  • Brooks Automation has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Brooks Automation's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

NasdaqGS:BRKS

-2.1%

US Semiconductor

-1.6%

US Market


1 Year Return

4.3%

NasdaqGS:BRKS

-0.9%

US Semiconductor

-3.0%

US Market

BRKS outperformed the Semiconductor industry which returned -0.9% over the past year.

BRKS outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

BRKSIndustryMarket
7 Day-1.0%-2.1%-1.6%
30 Day-24.5%-9.1%-5.7%
90 Day-12.2%9.4%0.2%
1 Year5.5%4.3%1.0%-0.9%-0.8%-3.0%
3 Year154.9%142.7%67.2%57.5%38.1%29.1%
5 Year207.8%172.7%101.0%80.9%50.8%34.1%

Price Volatility Vs. Market

How volatile is Brooks Automation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brooks Automation undervalued based on future cash flows and its price relative to the stock market?

703.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Brooks Automation's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Brooks Automation's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Brooks Automation is overvalued based on earnings compared to the US Semiconductor industry average.

Brooks Automation is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Brooks Automation is poor value based on expected growth next year.


Price Based on Value of Assets

Brooks Automation is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Brooks Automation expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

66.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Brooks Automation's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

Brooks Automation's earnings are expected to grow significantly at over 20% yearly.

Brooks Automation's revenue growth is expected to exceed the United States of America market average.

Brooks Automation's earnings growth is expected to exceed the United States of America market average.

Brooks Automation's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Brooks Automation is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Brooks Automation performed over the past 5 years?

33.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Brooks Automation has delivered over 20% year on year earnings growth in the past 5 years.

Brooks Automation's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Brooks Automation's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

Brooks Automation has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Brooks Automation used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Brooks Automation has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Brooks Automation's financial position?


Financial Position Analysis

Brooks Automation is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Brooks Automation's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Brooks Automation's level of debt (73.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 73.3% today).

Debt is not well covered by operating cash flow (16.5%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

What is Brooks Automation's current dividend yield, its reliability and sustainability?

1.29%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Brooks Automation before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Brooks Automation's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Brooks Automation's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Whilst dividend payments have been stable, Brooks Automation has been paying a dividend for less than 10 years.

Dividend payments have increased, but Brooks Automation only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).


Next Steps

Management

What is the CEO of Brooks Automation's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Steve Schwartz (60yo)

8.8yrs

Tenure

US$3,925,995

Compensation

Dr. Stephen S. Schwartz, also known as Steve, has been Chief Executive Officer of Brooks Automation, Inc. since October 1, 2010 and has been its President since May 2016. Dr. Schwartz serves as a Director  ...


CEO Compensation Analysis

Steve's remuneration is about average for companies of similar size in United States of America.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.2yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Brooks Automation management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.5yrs

Average Tenure

70yo

Average Age

The average tenure for the Brooks Automation board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$169,54010 May 19
Alfred Woollacott
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,355
Max PriceUS$38.93
SellUS$100,37407 May 19
David Jarzynka
EntityIndividual
Role
Unit President
President of Semiconductor Solutions Group
Shares2,577
Max PriceUS$38.95
SellUS$331,73215 Feb 19
Maurice Tenney
EntityIndividual
Role
Unit President
President of Brooks Life Sciences
Shares10,204
Max PriceUS$32.51
SellUS$232,35120 Nov 18
Stephen Schwartz
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares8,127
Max PriceUS$28.59
SellUS$105,06820 Nov 18
Lindon Robertson
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,675
Max PriceUS$28.59
SellUS$98,95020 Nov 18
Maurice Tenney
EntityIndividual
Role
Unit President
President of Brooks Life Sciences
Shares3,461
Max PriceUS$28.59
SellUS$55,63620 Nov 18
Jason Joseph
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,946
Max PriceUS$28.59
SellUS$38,22520 Nov 18
William Montone
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares1,337
Max PriceUS$28.59
SellUS$29,96220 Nov 18
David Pietrantoni
EntityIndividual
Role
Chief Accounting Officer
VP of Finance
Shares1,048
Max PriceUS$28.59
SellUS$143,98620 Nov 18
David Jarzynka
EntityIndividual
Role
Unit President
President of Semiconductor Solutions Group
Shares5,058
Max PriceUS$28.59
SellUS$862,82314 Nov 18
David Jarzynka
EntityIndividual
Role
Unit President
President of Semiconductor Solutions Group
Shares27,896
Max PriceUS$30.93
SellUS$1,437,84314 Nov 18
Maurice Tenney
EntityIndividual
Role
Unit President
President of Brooks Life Sciences
Shares46,487
Max PriceUS$30.93
SellUS$1,238,43714 Nov 18
Lindon Robertson
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares40,040
Max PriceUS$30.93
SellUS$2,932,96814 Nov 18
Stephen Schwartz
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares94,826
Max PriceUS$30.93
SellUS$306,17614 Nov 18
David Pietrantoni
EntityIndividual
Role
Chief Accounting Officer
VP of Finance
Shares9,899
Max PriceUS$30.93
SellUS$640,37514 Nov 18
William Montone
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares20,704
Max PriceUS$30.93
SellUS$640,37514 Nov 18
Jason Joseph
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares20,704
Max PriceUS$30.93
SellUS$18,32607 Nov 18
David Pietrantoni
EntityIndividual
Role
Chief Accounting Officer
VP of Finance
Shares577
Max PriceUS$31.76
SellUS$32,58607 Nov 18
Jason Joseph
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,026
Max PriceUS$31.76
SellUS$52,75307 Nov 18
David Jarzynka
EntityIndividual
Role
Unit President
President of Semiconductor Solutions Group
Shares1,661
Max PriceUS$31.76
SellUS$32,58607 Nov 18
William Montone
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares1,026
Max PriceUS$31.76
SellUS$65,17207 Nov 18
Maurice Tenney
EntityIndividual
Role
Unit President
President of Brooks Life Sciences
Shares2,052
Max PriceUS$31.76
SellUS$57,04107 Nov 18
Lindon Robertson
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,796
Max PriceUS$31.76
SellUS$126,27807 Nov 18
Stephen Schwartz
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,976
Max PriceUS$31.76

Ownership Breakdown


Management Team

  • Steve Schwartz (60yo)

    CEO, President & Director

    • Tenure: 8.8yrs
    • Compensation: US$3.93m
  • Dave Gray (53yo)

    Senior VP and Chief Strategy & New Business Officer

    • Tenure: 5.2yrs
    • Compensation: US$1.19m
  • Jason Joseph (48yo)

    Senior VP

    • Tenure: 8.4yrs
  • Mark Namaroff (56yo)

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Dusty Tenney (56yo)

    President of Brooks Life Sciences

    • Tenure: 4.8yrs
    • Compensation: US$1.70m
  • Bill Montone (67yo)

    Senior Vice President of Human Resources

    • Tenure: 13.8yrs
    • Compensation: US$881.63k
  • Lindon Robertson (57yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$2.16m
  • David Pietrantoni (46yo)

    VP of Finance

    • Tenure: 6.2yrs
  • John O'Brien (49yo)

    Vice President of Corporate Development

    • Tenure: 9.3yrs
  • David Jarzynka (51yo)

    President of Semiconductor Solutions Group

    • Tenure: 0.8yrs
    • Compensation: US$1.45m

Board Members

  • Kirk Pond (75yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$185.02k
  • Joe Martin (71yo)

    Chairman

    • Tenure: 13.3yrs
    • Compensation: US$270.01k
  • A. Allen (75yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$190.02k
  • Mark Wrighton (69yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$185.02k
  • Michael Rosenblatt (71yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$36.74k
  • Steve Schwartz (60yo)

    CEO, President & Director

    • Tenure: 8.8yrs
    • Compensation: US$3.93m
  • Ellen Zane (67yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$210.02k
  • Krishna Palepu (64yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$195.02k
  • Alfred Woollacott (72yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$192.52k
  • Robyn Davis (58yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$185.02k

Company Information

Brooks Automation, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brooks Automation, Inc.
  • Ticker: BRKS
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$2.175b
  • Shares outstanding: 70.33m
  • Website: https://www.brooks.com

Number of Employees


Location

  • Brooks Automation, Inc.
  • 15 Elizabeth Drive
  • Chelmsford
  • Massachusetts
  • 1824
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRKSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1995
BA3DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1995
0HQ1LSE (London Stock Exchange)YesCommon StockGBUSDFeb 1995

Biography

Brooks Automation, Inc. provides automation and cryogenic solutions for various markets. The company operates in two segments, Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Broo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:33
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.