NasdaqGS:BRKS

Stock Analysis Report

Executive Summary

Brooks Automation, Inc. provides automation and cryogenic solutions worldwide.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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

Stable Share Price: BRKS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

BRKS

-2.6%

US Semiconductor

-4.1%

US Market


1 Year Return

-7.7%

BRKS

-1.2%

US Semiconductor

-14.9%

US Market

Return vs Industry: BRKS matched the US Semiconductor industry which returned 3.6% over the past year.

Return vs Market: BRKS exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

BRKSIndustryMarket
7 Day-1.3%-2.6%-4.1%
30 Day-18.7%-15.4%-19.1%
90 Day-31.7%-18.2%-23.4%
1 Year-6.7%-7.7%0.7%-1.2%-13.2%-14.9%
3 Year37.5%32.3%46.8%38.7%10.7%3.5%
5 Year182.6%154.7%98.6%79.5%28.5%14.5%

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 compared to its fair value and its price relative to the market?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BRKS ($30.53) is trading below our estimate of fair value ($33.98)

Significantly Below Fair Value: BRKS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BRKS is poor value based on its PE Ratio (134.2x) compared to the Semiconductor industry average (26.7x).

PE vs Market: BRKS is poor value based on its PE Ratio (134.2x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BRKS is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: BRKS is good value based on its PB Ratio (1.9x) compared to the US Semiconductor industry average (2.3x).


Next Steps

Future Growth

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

48.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRKS's forecast earnings growth (48.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BRKS's earnings (48.7% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BRKS's revenue (11.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: BRKS's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRKS's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Brooks Automation performed over the past 5 years?

34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRKS has a large one-off loss of $17.5M impacting its December 31 2019 financial results.

Growing Profit Margin: BRKS's current net profit margins (2%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: BRKS has become profitable over the past 5 years, growing earnings by 34.1% per year.

Accelerating Growth: BRKS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BRKS had negative earnings growth (-77.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).


Return on Equity

High ROE: BRKS's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is Brooks Automation's financial position?


Financial Position Analysis

Short Term Liabilities: BRKS's short term assets ($663.5M) exceed its short term liabilities ($283.0M).

Long Term Liabilities: BRKS's short term assets ($663.5M) exceed its long term liabilities ($117.3M).


Debt to Equity History and Analysis

Debt Level: BRKS's debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: BRKS's debt to equity ratio has increased from 0% to 4.4% over the past 5 years.

Debt Coverage: BRKS's debt is well covered by operating cash flow (217.5%).

Interest Coverage: BRKS's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: BRKS has a low level of unsold assets or inventory.

Debt Coverage by Assets: BRKS's debt is covered by short term assets (assets are 13.1x debt).


Next Steps

Dividend

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

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRKS's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: BRKS's dividend (1.31%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BRKS has been paying a dividend for less than 10 years.

Growing Dividend: BRKS's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (175.9%), BRKS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRKS's dividends in 3 years are forecast to be well covered by earnings (23% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Steve Schwartz (60yo)

9.5s

Tenure

US$3,971,406

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. He serves as Interim General Manag ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.97M) is about average for companies of similar size in the US market ($USD4.61M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Schwartz
CEO, President9.5yrsUS$3.97m0.77% $16.3m
Lindon Robertson
Executive VP & CFO6.5yrsUS$2.21m0.16% $3.3m
David Gray
Senior VP and Chief Strategy & New Business Officer5.83yrsUS$1.10m0.12% $2.4m
David Jarzynka
President of Semiconductor Solutions Group1.5yrsUS$1.48m0.092% $1.9m
Guojuan Liao
Former President of Life Sciences Services & GENEWIZ1.42yrsUS$1.66m0.0023% $47.6k
David Pietrantoni
VP of Finance6.83yrsno data0.057% $1.2m
Mark Namaroff
Director of Investor Relationsno datano datano data
Jason Joseph
Senior VP9.08yrsno data0.14% $2.9m
John O'Brien
Vice President of Corporate Development9.92yrsno datano data
William Montone
Senior Vice President of Human Resources14.5yrsUS$881.63k0.16% $3.3m

6.8yrs

Average Tenure

53yo

Average Age

Experienced Management: BRKS's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Schwartz
CEO, President9.5yrsUS$3.97m0.77% $16.3m
Joseph Martin
Independent Chairman13.92yrsUS$300.02k0.12% $2.6m
A. Allen
Independent Director16.5yrsUS$220.02k0.14% $2.9m
Mark Wrighton
Independent Director14.5yrsUS$215.02k0.15% $3.2m
Michael Rosenblatt
Independent Director1.58yrsUS$212.52k0.011% $229.7k
Ellen Zane
Independent Director7.92yrsUS$240.02k0.073% $1.5m
Krishna Palepu
Independent Director14.42yrsUS$225.02k0.14% $2.9m
Alfred Woollacott
Independent Director14.5yrsUS$230.02k0.11% $2.4m
Robyn Davis
Independent Director6.83yrsUS$215.02k0.027% $577.9k

13.9yrs

Average Tenure

69yo

Average Age

Experienced Board: BRKS's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BRKS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

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$2.107b
  • Shares outstanding: 72.31m
  • 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
BA3BRSE (Berne Stock Exchange)YesCommon StockCHCHFFeb 1995

Biography

Brooks Automation, Inc. provides automation and cryogenic solutions worldwide. The company operates in two segments, Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers wafer automation and contamination controls solutions and services. Its products include atmospheric and vacuum robots, robotic modules, and tool automation systems that offer precision handling and clean wafer environments; and automated cleaning and inspection systems for wafer carriers, reticle pod cleaners, and stockers. This segment also offers repair, diagnostic, and installation services, as well as spare parts and productivity enhancement upgrade services. The Brooks Life Science Systems segment provides automated cold storage systems; consumables, including various formats of racks, tubes, caps, plates, and foils; and instruments used for labeling, bar coding, capping, de-capping, auditing, sealing, peeling, and piercing tubes and plates. It also provides sample management services, such as on-site and off-site sample storage, cold chain logistics, sample transport and collection relocation, bio-processing solutions, disaster recovery, and business continuity, as well as project management and consulting. In addition, this segment offers sample intelligence software solutions and customer technology integration; laboratory work flow scheduling for life science tools and instrument work cells, sample inventory and logistics, environmental and temperature monitoring, and clinical trial and consent management, as well as planning, data management, virtualization, and visualization services; and gene sequencing analysis and synthesis services. The company serves the semiconductor capital equipment and life sciences sample management markets in approximately 50 countries. Brooks Automation, Inc. was founded in 1978 and is headquartered in Chelmsford, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 04:16
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.