NOVA LTD (NVMI) Stock Fundamental Analysis
USA - NASDAQ:NVMI - IL0010845571 - Common Stock
330.75 USD
-0.58 (-0.18%)
330.75 USD
0 (0%)
NVMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While NVMI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NVMI is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make NVMI suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year NVMI was profitable.
In the past year NVMI had a positive cash flow from operations.
In the past 5 years NVMI has always been profitable.
NVMI had a positive operating cash flow in each of the past 5 years.
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.
NVMI's Return On Equity of 21.42% is amongst the best of the industry. NVMI outperforms 87.50% of its industry peers.
The Return On Invested Capital of NVMI (17.09%) is better than 91.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVMI is above the industry average of 10.98%.
The last Return On Invested Capital (17.09%) for NVMI is above the 3 year average (15.19%), which is a sign of increasing profitability.
| 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 Profit Margin of 29.10%. This is amongst the best in the industry. NVMI outperforms 90.18% of its industry peers.
NVMI's Profit Margin has improved in the last couple of years.
NVMI has a Operating Margin of 28.94%. This is amongst the best in the industry. NVMI outperforms 89.29% of its industry peers.
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.
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.
NVMI has more shares outstanding than it did 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
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 | 0.73 | ||
| Altman-Z | N/A |
ROIC/WACC1.48
WACC11.55%
2.3 Liquidity
NVMI has a Current Ratio of 2.57. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.57, NVMI is in line with its industry, outperforming 45.54% of the companies in the same industry.
A Quick Ratio of 2.05 indicates that NVMI has no problem at all paying its short term obligations.
The Quick ratio of NVMI (2.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.19% over the past year.
NVMI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.09% yearly.
Looking at the last year, NVMI shows a very strong growth in Revenue. The Revenue has grown by 43.69%.
NVMI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.49% yearly.
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
The Earnings Per Share is expected to grow by 16.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.26% on average over the next years. This is quite good.
EPS Next Y31.53%
EPS Next 2Y18.83%
EPS Next 3Y14.71%
EPS Next 5Y16.41%
Revenue Next Year31.36%
Revenue Next 2Y18.72%
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
Based on the Price/Earnings ratio of 41.04, the valuation of NVMI can be described as expensive.
Based on the Price/Earnings ratio, NVMI is valued a bit cheaper than 62.50% of the companies in the same industry.
NVMI is valuated rather expensively when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
NVMI is valuated quite expensively with a Price/Forward Earnings ratio of 35.06.
NVMI's Price/Forward Earnings ratio is in line with the industry average.
NVMI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.04 | ||
| Fwd PE | 35.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVMI is valued a bit cheaper than the industry average as 60.71% 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 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.59 | ||
| EV/EBITDA | 35.64 |
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.
NVMI's earnings are expected to grow with 14.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)1.24
EPS Next 2Y18.83%
EPS Next 3Y14.71%
5. Dividend
5.1 Amount
NVMI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
330.75
-0.58 (-0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners77.19%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.81B
Analysts84.29
Price Target296.45 (-10.37%)
Short Float %5.54%
Short Ratio4.07
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)0.99%
PT rev (3m)10.3%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)0.62%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.04 | ||
| Fwd PE | 35.06 | ||
| P/S | 12.15 | ||
| P/FCF | 47.59 | ||
| P/OCF | 42.69 | ||
| P/B | 8.94 | ||
| P/tB | 10.27 | ||
| EV/EBITDA | 35.64 |
EPS(TTM)8.06
EY2.44%
EPS(NY)9.43
Fwd EY2.85%
FCF(TTM)6.95
FCFY2.1%
OCF(TTM)7.75
OCFY2.34%
SpS27.22
BVpS36.98
TBVpS32.22
PEG (NY)1.3
PEG (5Y)1.24
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
WACC11.55%
ROIC/WACC1.48
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 Y31.53%
EPS Next 2Y18.83%
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 Year31.36%
Revenue Next 2Y18.72%
Revenue Next 3Y16.78%
Revenue Next 5Y16.26%
EBIT growth 1Y55.1%
EBIT growth 3Y18.61%
EBIT growth 5Y38.8%
EBIT Next Year43.75%
EBIT Next 3Y20.51%
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%