I posted awhile back that, compared to the companies BRKS itself uses as their chosen peer group, BRKS's sales/price ratio was worse than all but one of them. Now, after some quick calculating, it seems that BRKS once again has a stranglehold on the bottom rung of the ladder. Comparing the gross profit margins of these 10 companies, BRKS at just 29.5% of sales is again next to the bottom. Again, only lowly UCTT has managed to turn in worst numbers. By comparison, MKSI has a 41% margin, and Lam tops the group with a whopping 50%! It appears either BRKS's production costs are out of whack, or their products are too second rate to demand much of a premium. It's also sad to note that not too long ago, the share prices of BRKS and AMAT were comparable. Now, with AMAT at twice that of BRKS, it further highlights what a lousy company/investment BRKS has been.
Looked at the P/E of AMAT and it's at 18. While looking at the P/E of BRKS it's at 6. BRKS is down 50% from it's 52 week high. Semi's are cyclical and Wall Street is always 6 to 9 months ahead of the curve. Today the talk was all about the Tec. sector. Sure BRKS can go down to 9 or a bit lower but chances are that the stock price will go back up to 20.00 per share in the next 12 to 18 months. Some Funds buy the worst of the DOW Jones stocks, the ones that pay the highest dividends and do sometimes outperform the rest of the DOW by doing so. A lousy Co. "yes", but a Co. you could double your investment when management starts doing the "right thing".
I'm not exactly sure what your point is. I posted that BRKS is a lousy company in a cut-throat business, and you seem to agree, but then offer qualifiers. The fact is Wall Street hates this company. The lackluster returns and low gross margins are why. Sure, at $9-10 BRKS has great potential upside for those of a trading mindset, but as AMAT and those in BRKS's peer group demonstrate, when the cycle turns down BRKS gets unmercifully hammered to a greater extent than do the others. Perhaps if BRKS had been better run in the past, it wouldn't have such a low price/sales ratio today. If you find solace in the future, good for you. I instead look at where we are today and am aghast at the incompetence of the management.