312.84 USD
+5.17 (+1.68%)
315.97 USD
+3.13 (+1%)
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. While NVMI has a great profitability rating, there are some minor concerns on its financial health. NVMI is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
In the past year NVMI had a positive cash flow from operations.
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.
1.2 Ratios
NVMI has a Return On Assets of 10.62%. This is amongst the best in the industry. NVMI outperforms 83.04% of its industry peers.
NVMI's Return On Equity of 20.93% is amongst the best of the industry. NVMI outperforms 88.39% of its industry peers.
The Return On Invested Capital of NVMI (10.78%) is better than 83.04% 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 10.76%.
The 3 year average ROIC (15.19%) for NVMI is well above the current ROIC(10.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 20.93% | ||
| ROIC | 10.78% |
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 (28.73%) than 90.18% of its industry peers.
NVMI's Profit Margin has improved in the last couple of years.
NVMI has a better Operating Margin (29.11%) than 89.29% of its industry peers.
NVMI's Operating Margin has improved in the last couple of years.
The Gross Margin of NVMI (57.10%) is better than 81.25% of its industry peers.
In the last couple of years the Gross Margin of NVMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.11% | ||
| PM (TTM) | 28.73% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NVMI is creating some value.
The number of shares outstanding for NVMI has been increased compared to 1 year ago.
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
The Debt to FCF ratio of NVMI is 3.57, which is a good value as it means it would take NVMI, 3.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NVMI (3.57) is better than 62.50% of its industry peers.
NVMI has a Debt/Equity ratio of 0.62. This is a neutral value indicating NVMI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, NVMI is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | N/A |
ROIC/WACC0.92
WACC11.68%
2.3 Liquidity
A Current Ratio of 4.58 indicates that NVMI has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.58, NVMI is doing good in the industry, outperforming 68.75% of the companies in the same industry.
NVMI has a Quick Ratio of 4.00. This indicates that NVMI is financially healthy and has no problem in meeting its short term obligations.
NVMI's Quick ratio of 4.00 is fine compared to the rest of the industry. NVMI outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.58 | ||
| Quick Ratio | 4 |
3. Growth
3.1 Past
NVMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.02%, which is quite impressive.
The Earnings Per Share has been growing by 33.09% on average over the past years. This is a very strong growth
The Revenue has grown by 39.37% 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)39.02%
EPS 3Y20.27%
EPS 5Y33.09%
EPS Q2Q%24.14%
Revenue 1Y (TTM)39.37%
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.
Based on estimates for the next years, NVMI will show a very strong growth in Revenue. The Revenue will grow by 20.65% on average per year.
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 5Y20.65%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.89, 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 67.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NVMI to the average of the S&P500 Index (26.31), we can say NVMI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 32.87, the valuation of NVMI can be described as expensive.
NVMI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, NVMI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.89 | ||
| Fwd PE | 32.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVMI is valued a bit cheaper than 62.50% of the companies 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 67.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.34 | ||
| EV/EBITDA | 31.44 |
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 15.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)1.12
EPS Next 2Y19.37%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
No dividends for NVMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
312.84
+5.17 (+1.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners77.19%
Inst Owner Change110.36%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.28B
Revenue(TTM)852.72M
Net Income(TTM)245.02M
Analysts84.29
Price Target355.46 (13.62%)
Short Float %4.49%
Short Ratio3.4
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)1
Avg EPS beat(2)1.56%
Min EPS beat(2)-1.51%
Max EPS beat(2)4.63%
EPS beat(4)3
Avg EPS beat(4)2.71%
Min EPS beat(4)-1.51%
Max EPS beat(4)4.63%
EPS beat(8)7
Avg EPS beat(8)5.48%
EPS beat(12)11
Avg EPS beat(12)6.12%
EPS beat(16)15
Avg EPS beat(16)6.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)0.34%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)2.39%
Revenue beat(8)6
Avg Revenue beat(8)1.47%
Revenue beat(12)8
Avg Revenue beat(12)1.09%
Revenue beat(16)11
Avg Revenue beat(16)1.16%
PT rev (1m)19.91%
PT rev (3m)21.09%
EPS NQ rev (1m)2.47%
EPS NQ rev (3m)2.47%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.89 | ||
| Fwd PE | 32.87 | ||
| P/S | 10.88 | ||
| P/FCF | 40.34 | ||
| P/OCF | 36.52 | ||
| P/B | 7.92 | ||
| P/tB | 8.99 | ||
| EV/EBITDA | 31.44 |
EPS(TTM)8.48
EY2.71%
EPS(NY)9.52
Fwd EY3.04%
FCF(TTM)7.76
FCFY2.48%
OCF(TTM)8.57
OCFY2.74%
SpS28.76
BVpS39.49
TBVpS34.8
PEG (NY)1.18
PEG (5Y)1.12
Graham Number86.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 20.93% | ||
| ROCE | 12.46% | ||
| ROIC | 10.78% | ||
| ROICexc | 23.76% | ||
| ROICexgc | 28.08% | ||
| OM | 29.11% | ||
| PM (TTM) | 28.73% | ||
| GM | 57.1% | ||
| FCFM | 26.97% |
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-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 118.17% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.58% | ||
| Profit Quality | 93.85% | ||
| Current Ratio | 4.58 | ||
| Quick Ratio | 4 | ||
| Altman-Z | N/A |
F-Score5
WACC11.68%
ROIC/WACC0.92
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)39.37%
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 5Y20.65%
EBIT growth 1Y49.76%
EBIT growth 3Y18.61%
EBIT growth 5Y38.8%
EBIT Next Year43.75%
EBIT Next 3Y20.51%
EBIT Next 5YN/A
FCF growth 1Y83.23%
FCF growth 3Y19.59%
FCF growth 5Y62.24%
OCF growth 1Y77.01%
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 5 / 10.