NOVA LTD (NVMI) Stock Fundamental Analysis
USA - NASDAQ:NVMI - IL0010845571 - Common Stock
307.59 USD
-6.43 (-2.05%)
310.31 USD
+2.72 (+0.88%)
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. NVMI has an excellent profitability rating, 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 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.
In the past 5 years NVMI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.31%, NVMI belongs to the best of the industry, outperforming 90.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.42%, NVMI belongs to the top of the industry, outperforming 88.39% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.09%, NVMI belongs to the best of the industry, outperforming 91.96% of the companies in the same industry.
NVMI had an Average Return On Invested Capital over the past 3 years of 15.19%. This is above the industry average of 11.07%.
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 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's Operating Margin of 28.94% is amongst the best of 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.
NVMI's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NVMI is still creating some value.
Compared to 1 year ago, NVMI has more shares outstanding
NVMI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NVMI has an improved debt to assets ratio.
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/WACC1.51
WACC11.34%
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.
The Current ratio of NVMI (2.57) is comparable to the rest of the industry.
A Quick Ratio of 2.05 indicates that NVMI has no problem at all paying its short term obligations.
NVMI has a Quick ratio (2.05) which is in line with its industry peers.
| 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 39.02% 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.
NVMI shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.83%.
NVMI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.49% yearly.
EPS 1Y (TTM)39.02%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%24.14%
Revenue 1Y (TTM)29.83%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%25.5%
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.
The Revenue is expected to grow by 16.26% on average over the next years. This is quite good.
EPS Next Y31.25%
EPS Next 2Y19.37%
EPS Next 3Y15.78%
EPS Next 5Y16.41%
Revenue Next Year31.35%
Revenue Next 2Y18.8%
Revenue Next 3Y16.78%
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
NVMI is valuated quite expensively with a Price/Earnings ratio of 36.27.
Based on the Price/Earnings ratio, NVMI is valued a bit cheaper than 68.75% of the companies in the same industry.
NVMI is valuated rather expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.31, which means the current valuation is very expensive for NVMI.
NVMI's Price/Forward Earnings is on the same level as the industry average.
NVMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.27 | ||
| Fwd PE | 32.31 |
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.
67.86% of the companies in the same industry are more expensive than NVMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.26 | ||
| EV/EBITDA | 33.68 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as NVMI's earnings are expected to grow with 15.78% in the coming years.
PEG (NY)1.16
PEG (5Y)1.1
EPS Next 2Y19.37%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
NVMI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
307.59
-6.43 (-2.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners77.19%
Inst Owner Change-1.87%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.12B
Revenue(TTM)672.40M
Net Income(TTM)234.87M
Analysts84.29
Price Target316.85 (3.01%)
Short Float %4.79%
Short Ratio3.23
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)7.94%
PT rev (3m)17.89%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.27 | ||
| Fwd PE | 32.31 | ||
| P/S | 11.3 | ||
| P/FCF | 44.26 | ||
| P/OCF | 39.7 | ||
| P/B | 8.32 | ||
| P/tB | 9.55 | ||
| EV/EBITDA | 33.68 |
EPS(TTM)8.48
EY2.76%
EPS(NY)9.52
Fwd EY3.09%
FCF(TTM)6.95
FCFY2.26%
OCF(TTM)7.75
OCFY2.52%
SpS27.22
BVpS36.98
TBVpS32.22
PEG (NY)1.16
PEG (5Y)1.1
Graham Number84
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%
ROICexgc growth 3Y-25.15%
ROICexgc 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
WACC11.34%
ROIC/WACC1.51
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)39.02%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%24.14%
EPS Next Y31.25%
EPS Next 2Y19.37%
EPS Next 3Y15.78%
EPS Next 5Y16.41%
Revenue 1Y (TTM)29.83%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%25.5%
Revenue Next Year31.35%
Revenue Next 2Y18.8%
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%
NOVA LTD / NVMI FAQ
What is the ChartMill fundamental rating of NOVA LTD (NVMI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to NVMI.
What is the valuation status of NOVA LTD (NVMI) stock?
ChartMill assigns a valuation rating of 4 / 10 to NOVA LTD (NVMI). This can be considered as Fairly Valued.
How profitable is NOVA LTD (NVMI) stock?
NOVA LTD (NVMI) has a profitability rating of 9 / 10.
How financially healthy is NOVA LTD?
The financial health rating of NOVA LTD (NVMI) is 6 / 10.