Home > News > Industry News > Electronics - Manufacturing Machinery Outlook: Prospects Flash Bright
Daily News
Industry News
Company news
Latest News

what is mild steel

Mild steel is a type of carbon steel with a low amount of carbon – it is actually also known as “low carbon steel.” Although ranges vary depending ...

How and When to Add Bend Reliefs to Sheet Metal Parts

What is a Bend Relief? A bend relief is nothing more than two small incisions cut into a piece of sheet metal to free the metal between the two. It se...

Why is the surface of aluminum pressure casting black

Aluminum oxide processing aluminum alloy casting is generally cast with metal mold, metal aluminum and aluminum alloy have good fluidity and plasticity, but easy to black in the use of the process, what is going on?  Xy-global gives you a detailed introduction to the reasons for the blackening of the surface of aluminum alloy die castings.

Several elements of aluminum alloy die-casting mold maintenance

When the aluminum alloy die-casting mold is stopped, it must be regularly repaired, cleaned and maintained to effectively prolong the service life of the die-casting mold. So how does the volume

Surface cleaning method of the aluminum alloy merger

Remove the berries; remove the surface flow signs; Remove the paint attached to the surface : Get the uniform smoothness of the surface.

Group Construction Activity of Shenzhen Zhenpu Company

In order to improve the ability of teamwork, Shenzhen Zhenpu company has carried out a group construction activity, aiming to exercise the strong will...

Who's XY-Global ?

Since September 14, XY company has organized several online training sessions for interns as planned. The interns learned more about the company. “XY...

Advantages of die casting machine equipmen

In response to the problems in the die casting process itself, new technologies to improve the quality of die casting parts are emerging,

Polarization is serious The American middle class is shrinking.

The middle class in America's cities has shrunk dramatically in the 21st century.A Pew Research Center analysis of Census Bureau data looked at the st...

CNC machining processing

CNC machining is to use the CNC numerical control machine tools to directly process raw materials into samples that meet the requirements.
Contact Us
Vice General Manager: Ivy
E-mail: sales910@xy-global.com, sales.china@xy-global.com
Postal Code: 518129
Off Add: Room1702,17F,Building#4,Tianan Cloud Park,No.2018 Xuegang Rd.,Longgang District,Shenzhen.
Factory Add:Daling Industrial Area,Shaling,Fenggang Town,Dongguan City Contact Now

Electronics - Manufacturing Machinery Outlook: Prospects Flash Bright

Electronics - Manufacturing Machinery Outlook: Prospects Flash Bright

Coolidge www.diecastingpartsupplier.com 2018-07-19 15:35:03
The Zacks Electronics - Manufacturing Machinery industry is benefiting from the ongoing transition in semiconductor manufacturing technology.

The persistent shift to smaller dimensions, rapid adoption of new device architectures like FinFET transistors and 3D-NAND, along with increasing utilization of new manufacturing materials to increase transistor and bit density is driving demand for solutions provided by the Electronics - Manufacturing Machinery industry participants.

Semiconductor manufacturers are primarily aiming to maximize manufacturing yields at lower costs. Their target to continuously improve device performance requires faster as well as more powerful and energy efficient semiconductors. This is actually increasing the complexity in semiconductor manufacturing processes that includes depositing thin films of material onto silicon wafer substrates, etching, cleaning, lithography, metrology and inspection.

The Zacks Electronics - Manufacturing Machinery industry comprises companies that provide a range of solutions to address the entire materials handling system. This includes initial production of process chemistry to transportation and dispensing onto the wafer. Moreover, contamination-free transportation, storage and delivery of materials have gained immense significance in recent times.

Further, the rapid adoption of Internet of Things (IoT) supported factory automation solutions is a key catalyst. The industry participants are benefiting from significant capital investments that semiconductor manufacturers are making on equipment to keep pace with advancements in semiconductor technology.

Additionally, the strong demand for advanced packaging that enables the miniaturization of electronic products is driving growth for companies in the Zacks Electronics - Manufacturing Machinery industry.

Industry Performance Has Room to Run

However, looking at shareholder returns over the past year, it appears that the ongoing trade tension between the United States and China, and growing U.S. protectionism has been dampening sentiment on the Electronics - Manufacturing Machinery industry.

Notably, most of the semiconductor manufacturers are based in China, Korea, Taiwan and Japan.

The Zacks Electronics - Manufacturing Machinery Industry has underperformed the Zacks S&P 500 Composite but outperformed the broader Zacks Computer And Technology Sector over the past year.

While the stocks in this industry have collectively climbed 13.7%, the Zacks S&P 500 Composite and Zacks Computer And Technology Sector have rallied 14.2% and 10.9%, respectively.

One-Year Price Performance

The outperformance can be attributed to the strong demand for solutions that are essential in effectively managing the growing complexity of semiconductor manufacturing.

Electronics - Manufacturing Machinery Stocks Appear Cheap

Since there has been an exponential surge in debt level since 2013, it makes sense to value the industry based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because this valuation metric takes into account the level of debt.

For capital-intensive companies, the EV/EBITDA is a preferable valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.

Valuation of the Electronics - Manufacturing Machinery industry is really cheap now. The industry currently has a trailing 12-month EV/EBITDA ratio of 13.63X, which is below the high of 17.19X in the past year and the median level of 15.01X. Clearly, the aggregate valuation picture for the space appears inexpensive.

The space also looks quite cheap when compared with the market at large as the trailing 12-month EV/EBITDA ratio for the S&P 500 is 17.23X and the median level is 18.29X.

This news are provided by XY-GLOBAL team