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NOVA LTD (NVMI) Stock Fundamental Analysis

NASDAQ:NVMI - Nasdaq - IL0010845571 - Common Stock - Currency: USD

231.95  -7.23 (-3.02%)

Fundamental Rating

7

NVMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. NVMI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVMI is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make NVMI suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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9

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.
Each year in the past 5 years NVMI has been profitable.
In the past 5 years NVMI always reported a positive cash flow from operatings.
NVMI Yearly Net Income VS EBIT VS OCF VS FCFNVMI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

1.2 Ratios

NVMI has a better Return On Assets (13.22%) than 82.41% of its industry peers.
Looking at the Return On Equity, with a value of 19.81%, NVMI belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
NVMI's Return On Invested Capital of 16.19% is amongst the best of the industry. NVMI outperforms 88.89% 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 11.63%.
The 3 year average ROIC (15.19%) for NVMI is below the current ROIC(16.19%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.22%
ROE 19.81%
ROIC 16.19%
ROA(3y)13.16%
ROA(5y)11.67%
ROE(3y)20.62%
ROE(5y)18.88%
ROIC(3y)15.19%
ROIC(5y)14.49%
NVMI Yearly ROA, ROE, ROICNVMI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

The Profit Margin of NVMI (27.33%) is better than 89.81% of its industry peers.
NVMI's Profit Margin has improved in the last couple of years.
NVMI has a better Operating Margin (27.89%) than 88.89% of its industry peers.
In the last couple of years the Operating Margin of NVMI has grown nicely.
NVMI's Gross Margin of 57.57% is amongst the best of the industry. NVMI outperforms 80.56% of its industry peers.
NVMI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 27.89%
PM (TTM) 27.33%
GM 57.57%
OM growth 3Y1.07%
OM growth 5Y11.5%
PM growth 3Y6.9%
PM growth 5Y11.79%
GM growth 3Y0.58%
GM growth 5Y1.23%
NVMI Yearly Profit, Operating, Gross MarginsNVMI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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7

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.
Compared to 5 years ago, NVMI has more shares outstanding
NVMI has a better debt/assets ratio than last year.
NVMI Yearly Shares OutstandingNVMI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
NVMI Yearly Total Debt VS Total AssetsNVMI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 11.18 indicates that NVMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.18, NVMI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
NVMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.83
Altman-Z 11.18
ROIC/WACC1.35
WACC11.96%
NVMI Yearly LT Debt VS Equity VS FCFNVMI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

NVMI has a Current Ratio of 2.32. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
NVMI has a Current ratio of 2.32. This is in the lower half of the industry: NVMI underperforms 65.74% of its industry peers.
A Quick Ratio of 1.92 indicates that NVMI should not have too much problems paying its short term obligations.
NVMI has a Quick ratio (1.92) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.32
Quick Ratio 1.92
NVMI Yearly Current Assets VS Current LiabilitesNVMI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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8

3. Growth

3.1 Past

NVMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.89%, which is quite impressive.
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 29.83% in the past year. This is a very strong growth!
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)36.89%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%42.65%
Revenue 1Y (TTM)29.83%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%45.11%

3.2 Future

The Earnings Per Share is expected to grow by 14.70% on average over the next years. This is quite good.
NVMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.79% yearly.
EPS Next Y25.73%
EPS Next 2Y16.2%
EPS Next 3Y13.44%
EPS Next 5Y14.7%
Revenue Next Year26.79%
Revenue Next 2Y16.19%
Revenue Next 3Y14.5%
Revenue Next 5Y15.79%

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.
NVMI Yearly Revenue VS EstimatesNVMI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2029 500M 1B
NVMI Yearly EPS VS EstimatesNVMI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2029 2 4 6 8 10

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 34.72 indicates a quite expensive valuation of NVMI.
NVMI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NVMI to the average of the S&P500 Index (29.98), we can say NVMI is valued inline with the index average.
A Price/Forward Earnings ratio of 27.62 indicates a quite expensive valuation of NVMI.
The rest of the industry has a similar Price/Forward Earnings ratio as NVMI.
The average S&P500 Price/Forward Earnings ratio is at 22.66. NVMI is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 34.72
Fwd PE 27.62
NVMI Price Earnings VS Forward Price EarningsNVMI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
75.93% of the companies in the same industry are more expensive than NVMI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 30.87
EV/EBITDA 29.8
NVMI Per share dataNVMI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1.05
EPS Next 2Y16.2%
EPS Next 3Y13.44%

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0

5. Dividend

5.1 Amount

NVMI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NOVA LTD

NASDAQ:NVMI (3/3/2025, 1:44:58 PM)

231.95

-7.23 (-3.02%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-13 2025-02-13/bmo
Earnings (Next)05-07 2025-05-07/bmo
Inst Owners79.45%
Inst Owner Change-4.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.73B
Analysts82.86
Price Target290.86 (25.4%)
Short Float %3.58%
Short Ratio5.14
Dividend
Industry RankSector 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)3.08%
Min EPS beat(2)1.68%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)7.37%
Min EPS beat(4)1.68%
Max EPS beat(4)16.4%
EPS beat(8)8
Avg EPS beat(8)8.38%
EPS beat(12)12
Avg EPS beat(12)7.95%
EPS beat(16)16
Avg EPS beat(16)9.54%
Revenue beat(2)2
Avg Revenue beat(2)2.25%
Min Revenue beat(2)2.11%
Max Revenue beat(2)2.39%
Revenue beat(4)4
Avg Revenue beat(4)2.49%
Min Revenue beat(4)1.65%
Max Revenue beat(4)3.82%
Revenue beat(8)6
Avg Revenue beat(8)1.73%
Revenue beat(12)9
Avg Revenue beat(12)1.57%
Revenue beat(16)13
Avg Revenue beat(16)2.42%
PT rev (1m)18.04%
PT rev (3m)17.25%
EPS NQ rev (1m)11.55%
EPS NQ rev (3m)11.39%
EPS NY rev (1m)8.38%
EPS NY rev (3m)8.7%
Revenue NQ rev (1m)9.09%
Revenue NQ rev (3m)8.84%
Revenue NY rev (1m)7.07%
Revenue NY rev (3m)7.09%
Valuation
Industry RankSector Rank
PE 34.72
Fwd PE 27.62
P/S 10.01
P/FCF 30.87
P/OCF 28.61
P/B 7.26
P/tB 7.94
EV/EBITDA 29.8
EPS(TTM)6.68
EY2.88%
EPS(NY)8.4
Fwd EY3.62%
FCF(TTM)7.51
FCFY3.24%
OCF(TTM)8.11
OCFY3.5%
SpS23.17
BVpS31.97
TBVpS29.22
PEG (NY)1.35
PEG (5Y)1.05
Profitability
Industry RankSector Rank
ROA 13.22%
ROE 19.81%
ROCE 18.71%
ROIC 16.19%
ROICexc 39.05%
ROICexgc 48.32%
OM 27.89%
PM (TTM) 27.33%
GM 57.57%
FCFM 32.43%
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-Score9
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.83
Debt/EBITDA 0
Cap/Depr 99.06%
Cap/Sales 2.56%
Interest Coverage 250
Cash Conversion 114.81%
Profit Quality 118.66%
Current Ratio 2.32
Quick Ratio 1.92
Altman-Z 11.18
F-Score9
WACC11.96%
ROIC/WACC1.35
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)36.89%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%42.65%
EPS Next Y25.73%
EPS Next 2Y16.2%
EPS Next 3Y13.44%
EPS Next 5Y14.7%
Revenue 1Y (TTM)29.83%
Revenue growth 3Y17.35%
Revenue growth 5Y24.49%
Sales Q2Q%45.11%
Revenue Next Year26.79%
Revenue Next 2Y16.19%
Revenue Next 3Y14.5%
Revenue Next 5Y15.79%
EBIT growth 1Y41.9%
EBIT growth 3Y18.61%
EBIT growth 5Y38.8%
EBIT Next Year17.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y105.05%
FCF growth 3Y19.59%
FCF growth 5Y62.24%
OCF growth 1Y90.45%
OCF growth 3Y21.15%
OCF growth 5Y42.03%