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.


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

5.9%

BRKS

3.8%

US Semiconductor

2.3%

US Market


1 Year Return

18.3%

BRKS

18.2%

US Semiconductor

5.6%

US Market

Return vs Industry: BRKS matched the US Semiconductor industry which returned 18.2% over the past year.

Return vs Market: BRKS exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

BRKSIndustryMarket
7 Day5.9%3.8%2.3%
30 Day0.8%-0.03%-1.0%
90 Day-4.7%4.4%-0.7%
1 Year19.8%18.3%20.5%18.2%7.9%5.6%
3 Year199.3%186.4%82.3%71.6%45.6%36.3%
5 Year298.5%255.0%140.3%115.5%65.8%47.6%

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?

865.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BRKS ($38.06) is trading above our estimate of fair value ($23.37)

Significantly Undervalued: BRKS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRKS is poor value based on its PE Ratio (865.9x) compared to the Semiconductor industry average (27.7x).

PE vs Market: BRKS is poor value based on its PE Ratio (865.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BRKS is poor value based on its PEG Ratio (12.4x)


Price to Book Ratio

PB vs Industry: BRKS is overvalued based on its PB Ratio (3.6x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

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

69.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRKS's forecast earnings growth (69.9% per year) is above the savings rate (2.7%).

Earnings vs Market: BRKS's earnings (69.9% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: BRKS's revenue (10.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BRKS's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BRKS's Return on Equity is forecast to be low in 3 years time (9.3%).


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

Earnings Trend: BRKS's earnings have grown significantly by 33.3% per year over the past 5 years.

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 (-90.9%) over the past year, making it difficult to compare to the Semiconductor industry average (-6.2%).


Return on Equity

High ROE: BRKS's Return on Equity (0.4%) is considered low.


Return on Assets

ROA vs Industry: BRKS's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: BRKS has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Brooks Automation's financial position?


Financial Position Analysis

Short Term Liabilities: BRKS's short term assets ($526.9M) exceeds its short term liabilities ($175.0M)

Long Term Liabilities: BRKS's short term assets (526.9M) do not cover its long term liabilities (579.7M)


Debt to Equity History and Analysis

Debt Level: BRKS's debt to equity ratio (73.3%) is considered high

Reducing Debt: BRKS's debt to equity ratio has increased from 0% to 73.3% over the past 5 years.

Debt Coverage: BRKS's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: BRKS's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: BRKS's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.05%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BRKS's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BRKS's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (910%), 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 (26% payout ratio).


Next Steps

Management

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

8.6yrs

Average management tenure


CEO

Steve Schwartz (60yo)

9yrs

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

Compensation vs. Market: Steve's total compensation ($USD3.93M) is about average for companies of similar size in the US market ($USD5.13M).

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


Management Age and Tenure

8.6yrs

Average Tenure

53yo

Average Age

Experienced Management: BRKS's management team is seasoned and experienced (8.6 years average tenure).


Board Age and Tenure

12.7yrs

Average Tenure

70yo

Average Age

Experienced Board: BRKS's board of directors are seasoned and experienced ( 12.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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
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
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
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
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: 9yrs
    • Compensation: US$3.93m
  • Dave Gray (53yo)

    Senior VP and Chief Strategy & New Business Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.19m
  • Jason Joseph (48yo)

    Senior VP

    • Tenure: 8.6yrs
  • Mark Namaroff (56yo)

    Director of Investor Relations

    • Tenure: 0yrs
  • Bill Montone (67yo)

    Senior Vice President of Human Resources

    • Tenure: 14yrs
    • Compensation: US$881.63k
  • Lindon Robertson (57yo)

    Executive VP & CFO

    • Tenure: 6yrs
    • Compensation: US$2.16m
  • David Pietrantoni (46yo)

    VP of Finance

    • Tenure: 6.3yrs
  • John O'Brien (49yo)

    Vice President of Corporate Development

    • Tenure: 9.4yrs
  • David Jarzynka (51yo)

    President of Semiconductor Solutions Group

    • Tenure: 1yrs
    • Compensation: US$1.45m
  • Rob Woodward

    Senior Vice President of Quality & Engineering

    • Tenure: 9.9yrs

Board Members

  • Kirk Pond (75yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$185.02k
  • Joe Martin (71yo)

    Independent Chairman

    • Tenure: 13.4yrs
    • Compensation: US$270.01k
  • A. Allen (75yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$190.02k
  • Mark Wrighton (69yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$185.02k
  • Michael Rosenblatt (71yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$36.74k
  • Steve Schwartz (60yo)

    CEO, President & Director

    • Tenure: 9yrs
    • Compensation: US$3.93m
  • Ellen Zane (67yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$210.02k
  • Krishna Palepu (64yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$195.02k
  • Alfred Woollacott (72yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$192.52k
  • Robyn Davis (58yo)

    Independent Director

    • Tenure: 6.3yrs
    • 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$2.677b
  • 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 Analysis2019/10/16 23:33
End of Day Share Price2019/10/16 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.