Is NASDAQ:CAMT on the Verge of a Major Breakout as a Strong Growth Stock?

In this article, we'll take a closer look at CAMTEK LTD (NASDAQ:CAMT) as a potential candidate for growth investing. While it's important for investors to conduct their own research, CAMTEK LTD has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

How We Gauge Growth for NASDAQ:CAMT

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:CAMT was assigned a score of 8 for growth:

• CAMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.11%, which is quite impressive.
• Measured over the past years, CAMT shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.44% on average per year.
• The Revenue has been growing by 20.69% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, CAMT will show a very strong growth in Earnings Per Share. The EPS will grow by 25.22% on average per year.
• CAMT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.35% yearly.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CAMT has achieved a 6 out of 10:

• An Altman-Z score of 10.07 indicates that CAMT is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.07, CAMT is in the better half of the industry, outperforming 77.06% of the companies in the same industry.
• The Debt to FCF ratio of CAMT is 2.77, which is a good value as it means it would take CAMT, 2.77 years of fcf income to pay off all of its debts.
• CAMT has a Debt to FCF ratio of 2.77. This is in the better half of the industry: CAMT outperforms 65.14% of its industry peers.
• CAMT has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 5.66 indicates that CAMT has no problem at all paying its short term obligations.
• CAMT's Current ratio of 5.66 is fine compared to the rest of the industry. CAMT outperforms 77.06% of its industry peers.
• CAMT has a Quick Ratio of 4.77. This indicates that CAMT is financially healthy and has no problem in meeting its short term obligations.
• CAMT has a Quick ratio of 4.77. This is in the better half of the industry: CAMT outperforms 77.98% of its industry peers.

What does the Profitability looks like for NASDAQ:CAMT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:CAMT, the assigned 7 is a significant indicator of profitability:

• CAMT has a Return On Assets of 9.98%. This is in the better half of the industry: CAMT outperforms 77.98% of its industry peers.
• CAMT's Return On Equity of 16.51% is fine compared to the rest of the industry. CAMT outperforms 78.90% of its industry peers.
• CAMT has a better Return On Invested Capital (8.72%) than 76.15% of its industry peers.
• CAMT has a better Profit Margin (24.93%) than 86.24% of its industry peers.
• CAMT's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 21.18%, CAMT is in the better half of the industry, outperforming 77.98% of the companies in the same industry.
• In the last couple of years the Operating Margin of CAMT has grown nicely.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:CAMT this score is currently 7:

CAMT has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 99.93. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 87.54, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CAMT in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of CAMT for a complete fundamental analysis.

Check the latest full technical report of CAMT for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.