NOVA LTD (NVMI) Stock Fundamental Analysis
NASDAQ:NVMI - Nasdaq - IL0010845571 - Common Stock - Currency: USD
Taking everything into account, NVMI scores 7 out of 10 in our fundamental rating. NVMI was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. NVMI gets an excellent profitability rating and is at the same time showing great financial health properties. 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 and 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.
In the past 5 years NVMI has always been profitable.
Each year in the past 5 years NVMI had a positive operating cash flow.
1.2 Ratios
NVMI's Return On Assets of 13.22% is amongst the best of the industry. NVMI outperforms 84.55% of its industry peers.
NVMI has a Return On Equity of 19.81%. This is amongst the best in the industry. NVMI outperforms 84.55% of its industry peers.
NVMI has a better Return On Invested Capital (16.19%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVMI is above the industry average of 11.32%.
The last Return On Invested Capital (16.19%) for NVMI is above the 3 year average (15.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.22% | ||
| ROE | 19.81% | ||
| ROIC | 16.19% |
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
Looking at the Profit Margin, with a value of 27.33%, NVMI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NVMI has grown nicely.
The Operating Margin of NVMI (27.89%) is better than 88.18% of its industry peers.
In the last couple of years the Operating Margin of NVMI has grown nicely.
NVMI's Gross Margin of 57.57% is amongst the best of the industry. NVMI outperforms 80.91% of its industry peers.
NVMI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.89% | ||
| PM (TTM) | 27.33% | ||
| GM | 57.57% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NVMI is still creating some value.
The number of shares outstanding for NVMI has been increased compared to 1 year ago.
Compared to 5 years ago, NVMI has more shares outstanding
NVMI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.85 indicates that NVMI is not in any danger for bankruptcy at the moment.
The Altman-Z score of NVMI (9.85) is better than 84.55% 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 | 0.83 | ||
| Altman-Z | 9.85 |
ROIC/WACC1.37
WACC11.79%
2.3 Liquidity
NVMI has a Current Ratio of 2.32. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
NVMI's Current ratio of 2.32 is on the low side compared to the rest of the industry. NVMI is outperformed by 66.36% of its industry peers.
A Quick Ratio of 1.92 indicates that NVMI should not have too much problems paying its short term obligations.
NVMI has a Quick ratio of 1.92. This is in the lower half of the industry: NVMI underperforms 60.00% of its industry peers.
The current and quick ratio evaluation for NVMI is rather negative, while it does have 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 | 2.32 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
NVMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.89%, 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.
Looking at the last year, NVMI shows a very strong growth in Revenue. The Revenue has grown by 29.83%.
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)36.89%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%42.65%
Revenue 1Y (TTM)29.83%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%45.11%
3.2 Future
Based on estimates for the next years, NVMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.41% on average per year.
NVMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.26% yearly.
EPS Next Y25.84%
EPS Next 2Y16.44%
EPS Next 3Y14.18%
EPS Next 5Y16.41%
Revenue Next Year27.84%
Revenue Next 2Y16.7%
Revenue Next 3Y15.02%
Revenue Next 5Y16.26%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 30.27, which means the current valuation is very expensive for NVMI.
NVMI's Price/Earnings ratio is in line with the industry average.
NVMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
Based on the Price/Forward Earnings ratio of 24.05, the valuation of NVMI can be described as rather expensive.
NVMI's Price/Forward Earnings is on the same level as the industry average.
NVMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 24.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVMI is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVMI indicates a somewhat cheap valuation: NVMI is cheaper than 76.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.15 | ||
| EV/EBITDA | 24.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.18% in the coming years.
PEG (NY)1.17
PEG (5Y)0.91
EPS Next 2Y16.44%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
No dividends for NVMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
202.185
+6.53 (+3.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.45%
Inst Owner Change-0.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.92B
Analysts84.29
Price Target285.18 (41.05%)
Short Float %5.63%
Short Ratio5.38
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)2
Avg EPS beat(2)3.08%
Min EPS beat(2)1.68%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)7.37%
Min EPS beat(4)1.68%
Max EPS beat(4)16.4%
EPS beat(8)8
Avg EPS beat(8)8.38%
EPS beat(12)12
Avg EPS beat(12)7.95%
EPS beat(16)16
Avg EPS beat(16)9.54%
Revenue beat(2)2
Avg Revenue beat(2)2.25%
Min Revenue beat(2)2.11%
Max Revenue beat(2)2.39%
Revenue beat(4)4
Avg Revenue beat(4)2.49%
Min Revenue beat(4)1.65%
Max Revenue beat(4)3.82%
Revenue beat(8)6
Avg Revenue beat(8)1.73%
Revenue beat(12)9
Avg Revenue beat(12)1.57%
Revenue beat(16)13
Avg Revenue beat(16)2.42%
PT rev (1m)-1.21%
PT rev (3m)15.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.55%
EPS NY rev (1m)0%
EPS NY rev (3m)8.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.09%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)7.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 24.05 | ||
| P/S | 8.8 | ||
| P/FCF | 27.15 | ||
| P/OCF | 25.16 | ||
| P/B | 6.38 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 24.82 |
EPS(TTM)6.68
EY3.3%
EPS(NY)8.41
Fwd EY4.16%
FCF(TTM)7.45
FCFY3.68%
OCF(TTM)8.04
OCFY3.97%
SpS22.96
BVpS31.69
TBVpS28.96
PEG (NY)1.17
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.22% | ||
| ROE | 19.81% | ||
| ROCE | 18.71% | ||
| ROIC | 16.19% | ||
| ROICexc | 39.05% | ||
| ROICexgc | 48.32% | ||
| OM | 27.89% | ||
| PM (TTM) | 27.33% | ||
| GM | 57.57% | ||
| FCFM | 32.43% |
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%
ROICexcg growth 3Y-25.15%
ROICexcg 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-Score9
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 99.06% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.81% | ||
| Profit Quality | 118.66% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 9.85 |
F-Score9
WACC11.79%
ROIC/WACC1.37
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)36.89%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%42.65%
EPS Next Y25.84%
EPS Next 2Y16.44%
EPS Next 3Y14.18%
EPS Next 5Y16.41%
Revenue 1Y (TTM)29.83%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%45.11%
Revenue Next Year27.84%
Revenue Next 2Y16.7%
Revenue Next 3Y15.02%
Revenue Next 5Y16.26%
EBIT growth 1Y41.9%
EBIT growth 3Y18.61%
EBIT growth 5Y38.8%
EBIT Next Year30.13%
EBIT Next 3Y17.38%
EBIT Next 5YN/A
FCF growth 1Y105.05%
FCF growth 3Y19.59%
FCF growth 5Y62.24%
OCF growth 1Y90.45%
OCF growth 3Y21.15%
OCF growth 5Y42.03%