NOVA LTD (NVMI) Stock Fundamental Analysis
USA - NASDAQ:NVMI - IL0010845571 - Common Stock
290.31 USD
-6.54 (-2.2%)
290.31 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to NVMI. NVMI was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While NVMI has a great profitability rating, there are some minor concerns on its financial health. NVMI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes NVMI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
NVMI had positive earnings in the past year.
NVMI had a positive operating cash flow in the past year.
NVMI had positive earnings in each of the past 5 years.
NVMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NVMI (10.62%) is better than 82.14% of its industry peers.
NVMI's Return On Equity of 20.93% is amongst the best of the industry. NVMI outperforms 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.78%, NVMI belongs to the top of the industry, outperforming 83.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NVMI is above the industry average of 10.86%.
The 3 year average ROIC (15.19%) for NVMI is well above the current ROIC(10.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 20.93% | ||
| ROIC | 10.78% |
ROA(3y)13.16%
ROA(5y)11.67%
ROE(3y)20.62%
ROE(5y)18.88%
ROIC(3y)15.19%
ROIC(5y)14.49%
1.3 Margins
NVMI has a Profit Margin of 28.73%. This is amongst the best in the industry. NVMI outperforms 89.29% of its industry peers.
In the last couple of years the Profit Margin of NVMI has grown nicely.
With an excellent Operating Margin value of 29.11%, NVMI belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Operating Margin of NVMI has grown nicely.
With an excellent Gross Margin value of 57.10%, NVMI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
NVMI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.11% | ||
| PM (TTM) | 28.73% | ||
| GM | 57.1% |
OM growth 3Y1.07%
OM growth 5Y11.5%
PM growth 3Y6.9%
PM growth 5Y11.79%
GM growth 3Y0.58%
GM growth 5Y1.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NVMI is creating some value.
Compared to 1 year ago, NVMI has more shares outstanding
The number of shares outstanding for NVMI has been increased compared to 5 years ago.
NVMI has a better debt/assets ratio than last year.
2.2 Solvency
NVMI has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as NVMI would need 3.57 years to pay back of all of its debts.
The Debt to FCF ratio of NVMI (3.57) is better than 62.50% of its industry peers.
NVMI has a Debt/Equity ratio of 0.62. This is a neutral value indicating NVMI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, NVMI is doing worse than 74.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC11.07%
2.3 Liquidity
NVMI has a Current Ratio of 4.58. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.58, NVMI is doing good in the industry, outperforming 69.64% of the companies in the same industry.
NVMI has a Quick Ratio of 4.00. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NVMI (4.00) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.58 | ||
| Quick Ratio | 4 |
3. Growth
3.1 Past
NVMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.02%, which is quite impressive.
Measured over the past years, NVMI shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.09% on average per year.
The Revenue has grown by 39.37% in the past year. This is a very strong growth!
Measured over the past years, NVMI shows a very strong growth in Revenue. The Revenue has been growing by 24.49% on average per year.
EPS 1Y (TTM)39.02%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%24.14%
Revenue 1Y (TTM)39.37%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%25.5%
3.2 Future
NVMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.41% yearly.
The Revenue is expected to grow by 16.26% on average over the next years. This is quite good.
EPS Next Y31.25%
EPS Next 2Y19.37%
EPS Next 3Y15.78%
EPS Next 5Y16.41%
Revenue Next Year31.35%
Revenue Next 2Y18.8%
Revenue Next 3Y16.78%
Revenue Next 5Y16.26%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
NVMI is valuated quite expensively with a Price/Earnings ratio of 34.23.
Compared to the rest of the industry, the Price/Earnings ratio of NVMI indicates a somewhat cheap valuation: NVMI is cheaper than 68.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, NVMI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 30.50, NVMI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVMI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NVMI to the average of the S&P500 Index (34.59), we can say NVMI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 30.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVMI is valued a bit cheaper than 62.50% of the companies in the same industry.
70.54% of the companies in the same industry are more expensive than NVMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.43 | ||
| EV/EBITDA | 28.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NVMI may justify a higher PE ratio.
A more expensive valuation may be justified as NVMI's earnings are expected to grow with 15.78% in the coming years.
PEG (NY)1.1
PEG (5Y)1.03
EPS Next 2Y19.37%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
No dividends for NVMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
290.31
-6.54 (-2.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners77.19%
Inst Owner Change110.3%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.61B
Revenue(TTM)852.72M
Net Income(TTM)245.02M
Analysts84.29
Price Target316.85 (9.14%)
Short Float %4.79%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.56%
Min EPS beat(2)-1.51%
Max EPS beat(2)4.63%
EPS beat(4)3
Avg EPS beat(4)2.71%
Min EPS beat(4)-1.51%
Max EPS beat(4)4.63%
EPS beat(8)7
Avg EPS beat(8)5.48%
EPS beat(12)11
Avg EPS beat(12)6.12%
EPS beat(16)15
Avg EPS beat(16)6.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)0.34%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)2.39%
Revenue beat(8)6
Avg Revenue beat(8)1.47%
Revenue beat(12)8
Avg Revenue beat(12)1.09%
Revenue beat(16)11
Avg Revenue beat(16)1.16%
PT rev (1m)6.88%
PT rev (3m)17.89%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 30.5 | ||
| P/S | 10.09 | ||
| P/FCF | 37.43 | ||
| P/OCF | 33.89 | ||
| P/B | 7.35 | ||
| P/tB | 8.34 | ||
| EV/EBITDA | 28.95 |
EPS(TTM)8.48
EY2.92%
EPS(NY)9.52
Fwd EY3.28%
FCF(TTM)7.76
FCFY2.67%
OCF(TTM)8.57
OCFY2.95%
SpS28.76
BVpS39.49
TBVpS34.8
PEG (NY)1.1
PEG (5Y)1.03
Graham Number86.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 20.93% | ||
| ROCE | 12.46% | ||
| ROIC | 10.78% | ||
| ROICexc | 23.76% | ||
| ROICexgc | 28.08% | ||
| OM | 29.11% | ||
| PM (TTM) | 28.73% | ||
| GM | 57.1% | ||
| FCFM | 26.97% |
ROA(3y)13.16%
ROA(5y)11.67%
ROE(3y)20.62%
ROE(5y)18.88%
ROIC(3y)15.19%
ROIC(5y)14.49%
ROICexc(3y)32.48%
ROICexc(5y)43.28%
ROICexgc(3y)41.09%
ROICexgc(5y)54.3%
ROCE(3y)17.55%
ROCE(5y)16.75%
ROICexgc growth 3Y-25.15%
ROICexgc growth 5Y16.57%
ROICexc growth 3Y-24.52%
ROICexc growth 5Y15.8%
OM growth 3Y1.07%
OM growth 5Y11.5%
PM growth 3Y6.9%
PM growth 5Y11.79%
GM growth 3Y0.58%
GM growth 5Y1.23%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 118.17% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.58% | ||
| Profit Quality | 93.85% | ||
| Current Ratio | 4.58 | ||
| Quick Ratio | 4 | ||
| Altman-Z | N/A |
F-Score5
WACC11.07%
ROIC/WACC0.97
Cap/Depr(3y)117.01%
Cap/Depr(5y)96.11%
Cap/Sales(3y)3.2%
Cap/Sales(5y)2.63%
Profit Quality(3y)88.91%
Profit Quality(5y)103.24%
High Growth Momentum
Growth
EPS 1Y (TTM)39.02%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%24.14%
EPS Next Y31.25%
EPS Next 2Y19.37%
EPS Next 3Y15.78%
EPS Next 5Y16.41%
Revenue 1Y (TTM)39.37%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%25.5%
Revenue Next Year31.35%
Revenue Next 2Y18.8%
Revenue Next 3Y16.78%
Revenue Next 5Y16.26%
EBIT growth 1Y49.76%
EBIT growth 3Y18.61%
EBIT growth 5Y38.8%
EBIT Next Year43.75%
EBIT Next 3Y20.51%
EBIT Next 5YN/A
FCF growth 1Y83.23%
FCF growth 3Y19.59%
FCF growth 5Y62.24%
OCF growth 1Y77.01%
OCF growth 3Y21.15%
OCF growth 5Y42.03%
NOVA LTD / NVMI FAQ
What is the ChartMill fundamental rating of NOVA LTD (NVMI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NVMI.
What is the valuation status of NOVA LTD (NVMI) stock?
ChartMill assigns a valuation rating of 4 / 10 to NOVA LTD (NVMI). This can be considered as Fairly Valued.
How profitable is NOVA LTD (NVMI) stock?
NOVA LTD (NVMI) has a profitability rating of 9 / 10.
How financially healthy is NOVA LTD?
The financial health rating of NOVA LTD (NVMI) is 5 / 10.