Brooks Automation Stock Analysis, Valuation (NASDAQ:BRKS)

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$29.02 $0.68 (2.29%) BRKS stock closing price May 18, 2018 (Closing)
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Brooks Automation
Updated on : May 18, 2018
previous close
BRKS 29 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Manufacturing Machines
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
9.9%
Operating Profit
Operating Margin:
10.6%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
196.9M
Debt/Equity Ratio:
 0.28
Compared to the industry
Cash Flow
Operating cash flow:
$20.2M
Net Income:
$67M
Dividend Yield
BRKS dividend yield:
1.38%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BRKS PS :
2.7
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.5%
Return on Equity:
19.1%
Free Cash Flow Margin:
8.3%
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Brooks Automation Stock Analysis

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Investors can watch the Amigobulls Brooks Automation stock analysis video here. Our BRKS analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Brooks Automation, Inc Stock Rating 3.4/5

Amigobulls BRKS stock analysis takes into account various financial ratios like relative valuation, Brooks Automation revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Brooks Automation dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Brooks Automation valuation analysis. Brooks Automation stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy BRKS stock?

  • Brooks Automation sales grew by 22.4% year on year in 2018 Q2.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 9.9%.
  • Brooks Automation's average operating margin of 10.6% was exceptional.
  • LTM Net margins were good at 15.6% for Brooks Automation.
  • The price to earnings multiple of 20.6 is attractive when compared with the industry average PE ratio of 25.1.
  • Brooks Automation has an attractive ROIC (Return on Invested Capital) of 9.5%
  • Brooks Automation has a good Return On Equity (ROE) of 19.1%.

Should you sell BRKS stock?

  • With a debt/equity ratio of  0.28, Brooks Automation is highly leveraged in comparison to Computer and Technology peers.
  • Cash flow from operations is 0.3 times net income which is a negative signal.

Comments on this video and Brooks Automation stock

Amigobulls Brooks Automation stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of BRKS stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Brooks Automation revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of BRKS technical analysis to check whether the fundamental story is reflected in the market sentiment.