NOVA LTD (NVMI) Stock Fundamental Analysis
NASDAQ:NVMI - Nasdaq - IL0010845571 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NVMI. NVMI was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. NVMI scores excellent on profitability, but there are some minor concerns on its financial health. NVMI is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, NVMI could be worth investigating further 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.
In the past 5 years NVMI always reported a positive cash flow from operatings.
1.2 Ratios
NVMI has a better Return On Assets (14.46%) than 86.36% of its industry peers.
The Return On Equity of NVMI (21.56%) is better than 87.27% of its industry peers.
With an excellent Return On Invested Capital value of 17.40%, NVMI belongs to the best of the industry, outperforming 91.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NVMI is above the industry average of 10.57%.
The 3 year average ROIC (15.19%) for NVMI is below the current ROIC(17.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.46% | ||
| ROE | 21.56% | ||
| ROIC | 17.4% |
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's Profit Margin of 28.46% is amongst the best of the industry. NVMI outperforms 90.00% of its industry peers.
NVMI's Profit Margin has improved in the last couple of years.
NVMI has a Operating Margin of 28.71%. This is amongst the best in the industry. NVMI outperforms 88.18% of its industry peers.
NVMI's Operating Margin has improved in the last couple of years.
NVMI has a Gross Margin of 57.28%. This is in the better half of the industry: NVMI outperforms 79.09% of its industry peers.
NVMI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.71% | ||
| PM (TTM) | 28.46% | ||
| GM | 57.28% |
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
NVMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NVMI has more shares outstanding than it did 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
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 | 0.82 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC12.12%
2.3 Liquidity
NVMI has a Current Ratio of 2.18. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NVMI (2.18) is worse than 70.00% of its industry peers.
NVMI has a Quick Ratio of 1.74. 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 worse Quick ratio (1.74) than 66.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.21% 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 41.03%.
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)48.21%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%56.83%
Revenue 1Y (TTM)41.03%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%50.46%
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.
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 Y28.24%
EPS Next 2Y17.86%
EPS Next 3Y14.08%
EPS Next 5Y16.41%
Revenue Next Year29.95%
Revenue Next 2Y17.56%
Revenue Next 3Y14.68%
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.
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
With a Price/Earnings ratio of 29.74, NVMI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NVMI indicates a somewhat cheap valuation: NVMI is cheaper than 63.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NVMI to the average of the S&P500 Index (26.32), we can say NVMI is valued inline with the index average.
NVMI is valuated rather expensively with a Price/Forward Earnings ratio of 23.95.
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 (22.13), we can say NVMI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.74 | ||
| Fwd PE | 23.95 |
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 62.73% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVMI indicates a somewhat cheap valuation: NVMI is cheaper than 73.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.55 | ||
| EV/EBITDA | 24.93 |
4.3 Compensation for Growth
NVMI's 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 14.08% in the coming years.
PEG (NY)1.05
PEG (5Y)0.9
EPS Next 2Y17.86%
EPS Next 3Y14.08%
5. Dividend
5.1 Amount
No dividends for NVMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
222.19
-6.39 (-2.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.6%
Inst Owner Change-2.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.53B
Analysts84.29
Price Target265.13 (19.33%)
Short Float %4.86%
Short Ratio5.27
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)3.87%
Min EPS beat(2)3.26%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)6.45%
Min EPS beat(4)1.68%
Max EPS beat(4)16.4%
EPS beat(8)8
Avg EPS beat(8)6.86%
EPS beat(12)12
Avg EPS beat(12)6.37%
EPS beat(16)16
Avg EPS beat(16)9.07%
Revenue beat(2)1
Avg Revenue beat(2)0.97%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)2.39%
Revenue beat(4)3
Avg Revenue beat(4)1.97%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)3.82%
Revenue beat(8)6
Avg Revenue beat(8)1.72%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)12
Avg Revenue beat(16)2.18%
PT rev (1m)-7.03%
PT rev (3m)-8.85%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0%
EPS NY rev (3m)2%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.74 | ||
| Fwd PE | 23.95 | ||
| P/S | 8.78 | ||
| P/FCF | 29.55 | ||
| P/OCF | 26.73 | ||
| P/B | 6.65 | ||
| P/tB | 7.7 | ||
| EV/EBITDA | 24.93 |
EPS(TTM)7.47
EY3.36%
EPS(NY)9.28
Fwd EY4.18%
FCF(TTM)7.52
FCFY3.38%
OCF(TTM)8.31
OCFY3.74%
SpS25.3
BVpS33.41
TBVpS28.85
PEG (NY)1.05
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.46% | ||
| ROE | 21.56% | ||
| ROCE | 20.11% | ||
| ROIC | 17.4% | ||
| ROICexc | 35.53% | ||
| ROICexgc | 47.84% | ||
| OM | 28.71% | ||
| PM (TTM) | 28.46% | ||
| GM | 57.28% | ||
| FCFM | 29.72% |
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-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.82 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 130.12% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.58% | ||
| Profit Quality | 104.42% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | N/A |
F-Score8
WACC12.12%
ROIC/WACC1.44
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)48.21%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%56.83%
EPS Next Y28.24%
EPS Next 2Y17.86%
EPS Next 3Y14.08%
EPS Next 5Y16.41%
Revenue 1Y (TTM)41.03%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%50.46%
Revenue Next Year29.95%
Revenue Next 2Y17.56%
Revenue Next 3Y14.68%
Revenue Next 5Y16.26%
EBIT growth 1Y59.75%
EBIT growth 3Y18.61%
EBIT growth 5Y38.8%
EBIT Next Year36.85%
EBIT Next 3Y16.21%
EBIT Next 5YN/A
FCF growth 1Y102.26%
FCF growth 3Y19.59%
FCF growth 5Y62.24%
OCF growth 1Y88.42%
OCF growth 3Y21.15%
OCF growth 5Y42.03%