NOVA LTD (NVMI) Stock Fundamental Analysis
USA - NASDAQ:NVMI - IL0010845571 - Common Stock
315.41 USD
+5.82 (+1.88%)
315.41 USD
0 (0%)
We assign a fundamental rating of 7 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes NVMI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year NVMI was profitable.
NVMI had a positive operating cash flow in the past year.
Each year in the past 5 years NVMI has been profitable.
Each year in the past 5 years NVMI had a positive operating cash flow.
1.2 Ratios
NVMI has a Return On Assets of 15.31%. This is amongst the best in the industry. NVMI outperforms 89.29% of its industry peers.
The Return On Equity of NVMI (21.42%) is better than 87.50% of its industry peers.
NVMI has a better Return On Invested Capital (17.09%) than 91.96% of its industry peers.
NVMI had an Average Return On Invested Capital over the past 3 years of 15.19%. This is above the industry average of 10.87%.
The 3 year average ROIC (15.19%) for NVMI is below the current ROIC(17.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.31% | ||
| ROE | 21.42% | ||
| ROIC | 17.09% |
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 better Profit Margin (29.10%) than 90.18% of its industry peers.
In the last couple of years the Profit Margin of NVMI has grown nicely.
NVMI has a Operating Margin of 28.94%. This is amongst the best in the industry. NVMI outperforms 89.29% of its industry peers.
NVMI's Operating Margin has improved in the last couple of years.
NVMI's Gross Margin of 57.10% is amongst the best of the industry. NVMI outperforms 81.25% 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 | 28.94% | ||
| PM (TTM) | 29.1% | ||
| 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.
The number of shares outstanding for NVMI has been increased compared to 1 year ago.
NVMI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NVMI has been reduced compared to a year ago.
2.2 Solvency
There is no outstanding debt for NVMI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | N/A |
ROIC/WACC1.49
WACC11.44%
2.3 Liquidity
A Current Ratio of 2.57 indicates that NVMI has no problem at all paying its short term obligations.
NVMI has a Current ratio (2.57) which is in line with its industry peers.
NVMI has a Quick Ratio of 2.05. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
NVMI's Quick ratio of 2.05 is in line compared to the rest of the industry. NVMI outperforms 50.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
NVMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.19%, which is quite impressive.
The Earnings Per Share has been growing by 33.09% on average over the past years. This is a very strong growth
NVMI shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.69%.
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)44.19%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%36.65%
Revenue 1Y (TTM)43.69%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%40.25%
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.
Based on estimates for the next years, NVMI will show a quite strong growth in Revenue. The Revenue will grow by 16.26% on average per year.
EPS Next Y30.71%
EPS Next 2Y18.6%
EPS Next 3Y14.71%
EPS Next 5Y16.41%
Revenue Next Year31.35%
Revenue Next 2Y18.72%
Revenue Next 3Y17.07%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.13 indicates a quite expensive valuation of NVMI.
NVMI's Price/Earnings ratio is a bit cheaper when compared to the industry. NVMI is cheaper than 61.61% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. NVMI is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 33.57, the valuation of NVMI can be described as expensive.
NVMI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, NVMI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.13 | ||
| Fwd PE | 33.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVMI is valued a bit cheaper than the industry average as 61.61% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVMI indicates a somewhat cheap valuation: NVMI is cheaper than 69.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.38 | ||
| EV/EBITDA | 33.16 |
4.3 Compensation for Growth
NVMI's 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.
NVMI's earnings are expected to grow with 14.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)1.18
EPS Next 2Y18.6%
EPS Next 3Y14.71%
5. Dividend
5.1 Amount
No dividends for NVMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
315.41
+5.82 (+1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.71%
Inst Owner Change1.47%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.35B
Analysts84.29
Price Target293.55 (-6.93%)
Short Float %6.38%
Short Ratio5.33
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)3.94%
Min EPS beat(2)3.26%
Max EPS beat(2)4.63%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)1.68%
Max EPS beat(4)4.63%
EPS beat(8)8
Avg EPS beat(8)7.01%
EPS beat(12)12
Avg EPS beat(12)6.54%
EPS beat(16)16
Avg EPS beat(16)8.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)0.34%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)2.39%
Revenue beat(8)7
Avg Revenue beat(8)1.91%
Revenue beat(12)8
Avg Revenue beat(12)1.14%
Revenue beat(16)12
Avg Revenue beat(16)1.68%
PT rev (1m)9.22%
PT rev (3m)13.52%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.13 | ||
| Fwd PE | 33.57 | ||
| P/S | 11.59 | ||
| P/FCF | 45.38 | ||
| P/OCF | 40.71 | ||
| P/B | 8.53 | ||
| P/tB | 9.79 | ||
| EV/EBITDA | 33.16 |
EPS(TTM)8.06
EY2.56%
EPS(NY)9.4
Fwd EY2.98%
FCF(TTM)6.95
FCFY2.2%
OCF(TTM)7.75
OCFY2.46%
SpS27.22
BVpS36.98
TBVpS32.22
PEG (NY)1.27
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.31% | ||
| ROE | 21.42% | ||
| ROCE | 19.75% | ||
| ROIC | 17.09% | ||
| ROICexc | 32.3% | ||
| ROICexgc | 41.7% | ||
| OM | 28.94% | ||
| PM (TTM) | 29.1% | ||
| GM | 57.1% | ||
| FCFM | 25.53% |
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-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 124.23% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.94% | ||
| Profit Quality | 87.74% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | N/A |
F-Score7
WACC11.44%
ROIC/WACC1.49
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)44.19%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%36.65%
EPS Next Y30.71%
EPS Next 2Y18.6%
EPS Next 3Y14.71%
EPS Next 5Y16.41%
Revenue 1Y (TTM)43.69%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%40.25%
Revenue Next Year31.35%
Revenue Next 2Y18.72%
Revenue Next 3Y17.07%
Revenue Next 5Y16.26%
EBIT growth 1Y55.1%
EBIT growth 3Y18.61%
EBIT growth 5Y38.8%
EBIT Next Year37.25%
EBIT Next 3Y16.09%
EBIT Next 5YN/A
FCF growth 1Y88.37%
FCF growth 3Y19.59%
FCF growth 5Y62.24%
OCF growth 1Y78.48%
OCF growth 3Y21.15%
OCF growth 5Y42.03%