Brooks Automation, Inc. Net Income dropped on 85.2% while Revenue surged on 14.9%
11/10/2020 • About Brooks Automation, Inc. (
$BRKS) • By InTwits
Brooks Automation, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Brooks Automation, Inc. is a growth stock: FY2020 revenue growth was 14.9%, 5 year revenue CAGR was 10.2% at FY2020 ROIC 6.0%
- EBITDA Margin is expanding: 17.4% in FY2020 vs. 12.9% in FY2019 vs. 5.8% in FY2016
- EBITDA Margin is quite volatile: 17.4% in FY2020, 12.9% in FY2019, 10.9% in FY2018, 8.1% in FY2017, 5.8% in FY2016
- Brooks Automation, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $40m in FY2020, $24m in FY2019, $13m in FY2018, $13m in FY2017, $13m in FY2016
- The company has potentially unprofitable business model: ROIC is 6.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 14.9%. Revenue growth showed acceleration in FY20Q4 - it increased 23.6% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 37.4 pp from 13.2% to -24.2% in FY2020. EBITDA Margin grew at 2.8 pp per annum in FY2016-FY2020.
Gross Margin increased slightly on 1.9 pp from 40.5% to 42.4% in FY2020. Gross Margin grew at 1.7 pp per annum in FY2016-FY2020. SG&A as a % of Revenue showed almost no change in FY2020.
Net Income margin dropped on 48.8 pp from 56.0% to 7.2% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2019 at 56.0%.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.4% in FY2020. The company showed CAPEX/Revenue growth of 2.0 pp from 2.4% in FY2017 to 4.4% in FY2020. It's average level of CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at low ROIC (6.0%) and ROE (5.5%). ROIC increased slightly on 1.8 pp from 4.2% to 6.0% in FY2020. ROE dropped on 41.6 pp from 47.1% to 5.5% in FY2020. ROIC grew at 1.2 pp per annum in FY2016-FY2020. During the last 5 years ROE topped in FY2019 at 47.1%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 0.6x. Debt surged on 77.5% while cash decreased slightly on 2.0%.
Brooks Automation, Inc. has no short term refinancing risk: cash is higher than short term debt (3,293.4%).
Valuation and dividends
The company's trades at EV/EBITDA 31.9x and P/E 79.6x.
Management team
The company's CEO is Stephen S Schwartz. Stephen S Schwartz has 10 years tenure with the company. Brooks Automation, Inc.'s CFO is Lindon G Robertson. Lindon G Robertson has 7 years tenure at the company.
Financial and operational results
FY ended 09/30/2020
Brooks Automation, Inc. ($BRKS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 560.3 | 527.5 | 631.6 | 780.8 | 897.3 | 14.9% |
| Gross Profit | 198.1 | 198.9 | 246.1 | 316.3 | 380.0 | 20.2% |
| SG&A | 130.3 | 141.5 | 167.0 | 212.0 | 241.1 | 13.8% |
| EBITDA | 32.3 | 42.5 | 68.8 | 100.5 | 155.7 | 55.0% |
| EBIT | 4.2 | 14.3 | 31.4 | | | |
| Interest expence | 0.2 | 0.4 | 9.5 | | | |
| Tax | | 3.4 | -47.3 | | | |
| Net Income | -69.5 | 62.6 | 116.6 | 437.4 | 64.9 | -85.2% |
| Stock Based Compensation | 11.7 | 17.3 | 19.8 | | | |
Balance Sheet
|
|---|
| Cash | 85.1 | 101.6 | 197.7 | 301.6 | 295.6 | -2.0% |
| Accounts Receivable | | 93.5 | 125.2 | | | |
| Inventory | | 73.4 | 97.0 | | | |
| Accounts Payable | | 49.1 | 55.9 | | | |
| Short Term Debt | 0.0 | 0.0 | 2.0 | 0.8 | 9.0 | 982.9% |
| Long Term Debt | 0.0 | 0.0 | 194.1 | 50.3 | 81.8 | 62.6% |
Cash flow
|
|---|
| Capex | 12.8 | 12.7 | 12.8 | 23.9 | 39.9 | 67.3% |
| Dividends | 28.0 | 28.0 | 28.0 | | | |
| Acquisitions | 125.2 | 44.8 | 85.8 | | | |
Ratios
|
|---|
| Revenue growth | 1.4% | -5.9% | 19.7% | 23.6% | 14.9% | |
| EBITDA growth | -23.2% | 31.5% | 62.1% | 46.0% | 55.0% | |
|
|---|
| Gross Margin | 35.4% | 37.7% | 39.0% | 40.5% | 42.4% | 1.9% |
| EBITDA Margin | 5.8% | 8.1% | 10.9% | 12.9% | 17.4% | 4.5% |
| EBIT Margin | 0.8% | 2.7% | 5.0% | | |
| SG&A, % of revenue | 23.2% | 26.8% | 26.4% | 27.1% | 26.9% | -0.3% |
| SBC, % of revenue | 2.1% | 3.3% | 3.1% | | |
| Net Income Margin | -12.4% | 11.9% | 18.5% | 56.0% | 7.2% | -48.8% |
| CAPEX, % of revenue | 2.3% | 2.4% | 2.0% | 3.1% | 4.4% | 1.4% |
|
|---|
| ROIC | 0.8% | 2.4% | 4.2% | 4.2% | 6.0% | 1.8% |
| ROE | -11.7% | 10.8% | 17.6% | 47.1% | 5.5% | -41.6% |
| Net Debt/EBITDA | -2.6x | -2.4x | -0.0x | -2.5x | -1.3x | 1.2x |
| Interest expence / Average debt | | | 9.7% | | | |
People
|
|---|
| Insider ownership | 2.5% | 2.5% | 2.5% | | | |
| Employees | 1,310 | 1,661 | 1,550 | | | |
| Revenue/Employee, th. $ | 428 | 318 | 407 | | | |
Brooks Automation, Inc. ($BRKS) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 211 | 220 | 220 | 246 | | 17.4% | 11.0% | 8.1% | 23.6% |
| EBITDA | 29 | 33 | 38 | 53 | | 70.4% | 18.7% | 25.0% | 115.4% |
| Net Income | 13 | 9 | 14 | 29 | | -9.4% | 166.8% | 88.8% | -93.0% |
Balance Sheet
|
|---|
| Cash | 335 | 242 | 257 | 296 | | 146.9% | 76.6% | 63.6% | -2.0% |
| Short Term Debt | 8 | 9 | 8 | 9 | | -13.9% | 9.4% | 33.9% | 982.9% |
| Long Term Debt | 72 | 78 | 79 | 82 | | -86.5% | -85.4% | -85.1% | 62.6% |
Ratios
|
|---|
| Gross Margin | 40.4% | 41.0% | 42.1% | 45.5% | | 0.2% | 0.4% | 1.1% | 5.2% |
| EBITDA Margin | 13.9% | 15.2% | 17.3% | 21.6% | | 4.3% | 1.0% | 2.3% | 9.2% |
| Net Income Margin | 6.2% | 4.1% | 6.2% | 11.8% | | -1.8% | 2.4% | 2.7% | -195.2% |
Peers in Semiconductor Equipment
Below you can find Brooks Automation, Inc. benchmarking vs. other companies in Semiconductor Equipment industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | - | 44.0% | 8.7% | -31.0% | 218.5% |
| DAQO New Energy Corp. ($DQ) | - | 41.1% | -6.7% | 16.0% | 93.0% |
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.7% | 14.0% | -2.8% | 16.9% |
|---|
| Brooks Automation, Inc. ($BRKS) | - | -5.9% | 19.7% | 23.6% | 14.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
| Teradyne, Inc. ($TER) | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% |
| Nova Measuring Instruments Ltd. ($NVMI) | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% |
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 40.0% | 44.0% | 41.2% | 40.3% | 42.7% |
|---|
| Brooks Automation, Inc. ($BRKS) | 35.4% | 37.7% | 39.0% | 40.5% | 42.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% |
| DAQO New Energy Corp. ($DQ) | 43.3% | 49.1% | 36.1% | 27.1% | 38.0% |
| Teradyne, Inc. ($TER) | 3.4% | 29.6% | 27.9% | 30.3% | 33.8% |
| Cabot Microelectronics Corporation ($CCMP) | 23.4% | 27.2% | 31.5% | 20.1% | 31.6% |
| Entegris, Inc. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.2% | 16.6% | 11.9% | 15.4% |
|---|
| Brooks Automation, Inc. ($BRKS) | 5.8% | 8.1% | 10.9% | 12.9% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| DAQO New Energy Corp. ($DQ) | 29.5% | 19.8% | 47.4% | 79.7% | 17.5% |
| Photronics, Inc. ($PLAB) | 10.4% | 20.4% | 17.3% | 32.4% | 11.6% |
| Cabot Microelectronics Corporation ($CCMP) | 4.1% | 4.2% | 3.6% | 5.4% | 11.3% |
| Amkor Technology, Inc. ($AMKR) | 16.5% | 13.1% | 12.7% | 11.7% | 10.9% |
| ACM Research, Inc. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.5% | 3.2% | 3.0% | 3.4% | 3.3% |
|---|
| Brooks Automation, Inc. ($BRKS) | 2.3% | 2.4% | 2.0% | 3.1% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Teradyne, Inc. ($TER) | -2.9% | 23.8% | 22.6% | 29.2% | 40.3% |
| DAQO New Energy Corp. ($DQ) | 12.7% | 23.2% | 12.2% | 5.6% | 18.5% |
| Entegris, Inc. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.6% | 13.1% | 12.1% | 5.6% | 10.5% |
|---|
| Brooks Automation, Inc. ($BRKS) | 0.8% | 2.4% | 4.2% | 4.2% | 6.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
| Xperi Corporation ($XPER) | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x |
| Cabot Microelectronics Corporation ($CCMP) | -1.3x | -1.8x | -1.9x | 3.6x | 2.0x |
| Entegris, Inc. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
| Brooks Automation, Inc. ($BRKS) | -2.6x | -2.4x | -0.0x | -2.5x | -1.3x |
