NOVA LTD (NVMI) Stock Fundamental Analysis
NASDAQ:NVMI - Nasdaq - IL0010845571 - Common Stock - Currency: USD
Taking everything into account, NVMI scores 6 out of 10 in our fundamental rating. 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make NVMI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
NVMI had positive earnings in the past year.
In the past year NVMI had a positive cash flow from operations.
NVMI had positive earnings in each of the past 5 years.
Each year in the past 5 years NVMI had a positive operating cash flow.
1.2 Ratios
NVMI has a better Return On Assets (14.46%) than 88.18% of its industry peers.
NVMI has a better Return On Equity (21.56%) than 87.27% of its industry peers.
NVMI has a better Return On Invested Capital (17.40%) than 91.82% 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 10.69%.
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
Looking at the Profit Margin, with a value of 28.46%, NVMI belongs to the top of the industry, outperforming 88.18% of the companies in the same industry.
In the last couple of years the Profit Margin of NVMI has grown nicely.
NVMI has a Operating Margin of 28.71%. This is amongst the best in the industry. NVMI outperforms 89.09% of its industry peers.
NVMI's Operating Margin has improved in the last couple of years.
NVMI's Gross Margin of 57.28% is fine compared to the rest 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NVMI is 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.
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 | 0.82 | ||
| Altman-Z | N/A |
ROIC/WACC1.46
WACC11.93%
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.
NVMI has a worse Current ratio (2.18) than 69.09% of its industry peers.
A Quick Ratio of 1.74 indicates that NVMI should not have too much problems paying its short term obligations.
NVMI has a Quick ratio of 1.74. This is in the lower half of the industry: NVMI underperforms 65.45% 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.
The Revenue has grown by 41.03% in the past year. This is a very strong growth!
NVMI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.49% yearly.
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 Y29.1%
EPS Next 2Y18.06%
EPS Next 3Y14.08%
EPS Next 5Y16.41%
Revenue Next Year29.96%
Revenue Next 2Y17.92%
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
The Price/Earnings ratio is 34.50, which means the current valuation is very expensive for NVMI.
Compared to the rest of the industry, the Price/Earnings ratio of NVMI indicates a somewhat cheap valuation: NVMI is cheaper than 60.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.99, NVMI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 27.68, the valuation of NVMI can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVMI is on the same level as its industry peers.
NVMI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.5 | ||
| Fwd PE | 27.68 |
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.
Based on the Price/Free Cash Flow ratio, NVMI is valued a bit cheaper than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.27 | ||
| EV/EBITDA | 30.18 |
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 14.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)1.04
EPS Next 2Y18.06%
EPS Next 3Y14.08%
5. Dividend
5.1 Amount
NVMI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
257.71
-5.78 (-2.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.6%
Inst Owner Change0.6%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.58B
Analysts84.29
Price Target268.78 (4.3%)
Short Float %5.57%
Short Ratio6.03
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)3.94%
PT rev (3m)-5.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.5 | ||
| Fwd PE | 27.68 | ||
| P/S | 10.18 | ||
| P/FCF | 34.27 | ||
| P/OCF | 31 | ||
| P/B | 7.71 | ||
| P/tB | 8.93 | ||
| EV/EBITDA | 30.18 |
EPS(TTM)7.47
EY2.9%
EPS(NY)9.31
Fwd EY3.61%
FCF(TTM)7.52
FCFY2.92%
OCF(TTM)8.31
OCFY3.23%
SpS25.3
BVpS33.41
TBVpS28.85
PEG (NY)1.19
PEG (5Y)1.04
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
WACC11.93%
ROIC/WACC1.46
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 Y29.1%
EPS Next 2Y18.06%
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 Year29.96%
Revenue Next 2Y17.92%
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%