This is a step-by-step stock review to answer the question, is Brooks Automation (BRKS) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Brooks Automation (BRKS) stock a good buy?
- Brooks Automation Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Brooks Automation stock a good buy?
1.Brooks Automation Company History
- Founded in 1978: Brooks Automation was established to serve the semiconductor industry with advanced automation solutions.
- Semiconductor Focus: Initially, the company specialized in providing automated wafer handling systems, crucial for semiconductor manufacturing.
- Growth Through Innovation: Throughout the 1980s and 1990s, Brooks expanded its product portfolio, introducing cutting-edge technologies like vacuum robots and contamination control systems.
- Public Offering in 1995: Brooks Automation went public, fueling its growth and enabling strategic acquisitions to enhance its technology offerings.
- Expansion Beyond Semiconductors: In the 2000s, Brooks diversified into other high-tech industries, including life sciences, by developing automation solutions for research and medical applications.
- Life Sciences Pivot: In recent years, the company has increasingly focused on life sciences, culminating in the spin-off of its semiconductor automation business in 2021, rebranding as Azenta Life Sciences.
- Global Reach: Headquartered in Chelmsford, Massachusetts, Brooks Automation, now Azenta Life Sciences, continues to be a leader in providing automation solutions across multiple industries.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 56
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Brooks Automation makes money:
- Life Sciences Automation: Brooks Automation makes money by selling automated systems and solutions used in laboratories for handling biological samples, including storage and retrieval systems.
- Cryogenic Storage: The company profits from providing cryogenic storage solutions for biological materials, used in research and biobanking.
- Semiconductor Solutions: Before spinning off its semiconductor business, Brooks earned revenue from selling automation and contamination control systems for semiconductor manufacturing.
- Service and Support: Brooks Automation generates income by offering maintenance, repair, and support services for its automation equipment across various industries.
- Software Solutions: The company earns money by providing software that enhances the efficiency and accuracy of its automation systems, especially in life sciences.
- Custom Engineering: Brooks also profits from creating customized automation solutions tailored to specific customer needs in both life sciences and high-tech industries.
- HTS Technologies
- BioStorage Technologies
- Gatan, Inc.
- Mountain View Technologies
- Cryoport Inc.
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4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Brooks Automation stacks up against other companies.
- Meta Platforms, Inc.(META) – 89
- Jiayin Group Inc.(JFIN) – 84
- Alphabet Inc.(GOOG) – 78
- Alphabet Inc.(GOOGL) – 72
- Baidu, Inc.(BIDU) – 67
- Match Group, Inc.(MTCH) – 56
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Expanded Product Portfolio: Dave Jarzynka led efforts to diversify Brooks Automation’s product offerings, enhancing its automation and life sciences solutions.
- Successful IPO: Under his leadership, Brooks Automation successfully went public in 1995, fueling growth and expanding its market presence.
- Strategic Acquisitions: Jarzynka oversaw key acquisitions, such as BioStorage Technologies, which expanded the company’s capabilities in life sciences.
- Increased Focus on Life Sciences: He shifted the company’s focus towards the life sciences sector, driving innovation and growth in this area.
- Enhanced Operational Efficiency: Jarzynka implemented initiatives to improve operational efficiency and reduce costs, strengthening the company’s financial performance.
- Global Expansion: Under his leadership, Brooks Automation expanded its global footprint, reaching new markets and increasing its international presence.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Brooks Automation (BRKS) is 67/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Brooks Automation (BRKS) stock a good buy?
Some of the top questions investors can have is Brooks Automation (BRKS) stock a good buy or should I buy Brooks Automation (BRKS) stock?
Brooks Automation is a compelling investment due to its strong position in automation and life sciences. The company has successfully diversified its offerings, expanding from semiconductor automation to include critical life sciences solutions, such as cryogenic storage and lab automation systems. Brooks’ strategic acquisitions, like BioStorage Technologies, and its focus on innovation have strengthened its market position and growth potential.
The spin-off of its semiconductor business, now Azenta Life Sciences, allows Brooks to focus exclusively on the growing life sciences market, which offers robust opportunities due to increasing demand for biological sample handling and storage.
However, investors should consider the potential risks associated with industry fluctuations and the challenges of maintaining competitive advantage. Overall, Brooks Automation’s growth in the life sciences sector, combined with its strategic focus and innovative solutions, makes it an attractive investment for those interested in the expanding field of automated and life sciences technology.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.