NOVA LTD (NVMI)
IL0010845571 - Common Stock
We assign a fundamental rating of 6 out of 10 to NVMI. NVMI was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. NVMI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVMI is not valued too expensively and it also shows a decent growth rate. These ratings could make NVMI a good candidate for quality 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.
Each year in the past 5 years NVMI has been profitable.
In the past 5 years NVMI always reported a positive cash flow from operatings.
1.2 Ratios
NVMI has a better Return On Assets (12.02%) than 80.19% of its industry peers.
NVMI's Return On Equity of 18.15% is amongst the best of the industry. NVMI outperforms 82.08% of its industry peers.
NVMI has a better Return On Invested Capital (14.39%) than 83.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVMI is significantly above the industry average of 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 18.15% | ||
| ROIC | 14.39% |
ROA(3y)12.61%
ROA(5y)10.79%
ROE(3y)20.56%
ROE(5y)17.16%
ROIC(3y)16.39%
ROIC(5y)13.3%
1.3 Margins
Looking at the Profit Margin, with a value of 26.31%, NVMI belongs to the top of the industry, outperforming 85.85% of the companies in the same industry.
In the last couple of years the Profit Margin of NVMI has grown nicely.
With an excellent Operating Margin value of 25.52%, NVMI belongs to the best of the industry, outperforming 80.19% of the companies in the same industry.
In the last couple of years the Operating Margin of NVMI has remained more or less at the same level.
The Gross Margin of NVMI (56.61%) is better than 74.53% of its industry peers.
In the last couple of years the Gross Margin of NVMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.52% | ||
| PM (TTM) | 26.31% | ||
| GM | 56.61% |
OM growth 3Y7.36%
OM growth 5Y1.2%
PM growth 3Y13.97%
PM growth 5Y3.97%
GM growth 3Y0.29%
GM growth 5Y-0.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NVMI is still 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.
Compared to 1 year ago, NVMI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.62 indicates that NVMI is not in any danger for bankruptcy at the moment.
NVMI has a better Altman-Z score (9.62) than 79.25% of its industry peers.
NVMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 9.62 |
ROIC/WACC1.22
WACC11.81%
2.3 Liquidity
A Current Ratio of 2.20 indicates that NVMI has no problem at all paying its short term obligations.
The Current ratio of NVMI (2.20) is worse than 66.98% of its industry peers.
NVMI has a Quick Ratio of 1.77. This is a normal value and indicates that NVMI is financially healthy and should not expect problems in meeting its short term obligations.
NVMI has a Quick ratio of 1.77. This is in the lower half of the industry: NVMI underperforms 62.26% of its industry peers.
NVMI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The earnings per share for NVMI have decreased by -3.56% in the last year.
NVMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.26% yearly.
The Revenue has decreased by -9.25% in the past year.
Measured over the past years, NVMI shows a quite strong growth in Revenue. The Revenue has been growing by 15.58% on average per year.
EPS 1Y (TTM)-3.56%
EPS 3Y33.09%
EPS 5Y18.26%
EPS growth Q2Q6.25%
Revenue 1Y (TTM)-9.25%
Revenue growth 3Y24.34%
Revenue growth 5Y15.58%
Revenue growth Q2Q-11.23%
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 12.52% yearly.
Based on estimates for the next years, NVMI will show a quite strong growth in Revenue. The Revenue will grow by 13.37% on average per year.
EPS Next Y12.91%
EPS Next 2Y15.34%
EPS Next 3Y12.52%
EPS Next 5YN/A
Revenue Next Year14.08%
Revenue Next 2Y14.43%
Revenue Next 3Y13.37%
Revenue Next 5YN/A
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.29, which means the current valuation is very expensive for NVMI.
NVMI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.55, NVMI is valued a bit more expensive.
NVMI is valuated quite expensively with a Price/Forward Earnings ratio of 30.37.
60.38% of the companies in the same industry are more expensive than NVMI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, NVMI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.29 | ||
| Fwd PE | 30.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVMI indicates a somewhat cheap valuation: NVMI is cheaper than 62.26% of the companies listed in the same industry.
68.87% 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 | 45.67 | ||
| EV/EBITDA | 28.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NVMI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NVMI's earnings are expected to grow with 12.52% in the coming years.
PEG (NY)2.66
PEG (5Y)1.88
EPS Next 2Y15.34%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
No dividends for NVMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NOVA LTD
NASDAQ:NVMI (5/1/2024, 7:13:33 PM)
After market: 167.34 0 (0%)167.34
-2.56 (-1.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
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Market Cap4.86B
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| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.29 | ||
| Fwd PE | 30.37 | ||
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PEG (NY)2.66
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.02% | ||
| ROE | 18.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.52% | ||
| PM (TTM) | 26.31% | ||
| GM | 56.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
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F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z |
F-Score
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Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
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Growth
EPS 1Y (TTM)-3.56%
EPS 3Y33.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.25%
Revenue growth 3Y24.34%
Revenue growth 5Y
Revenue growth Q2Q
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