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. While NVMI has a great profitability rating, there are some minor concerns on its financial health. NVMI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
NVMI had a positive operating cash flow in the past year.
Each year in the past 5 years NVMI has been profitable.
Each year in the past 5 years NVMI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.46%, NVMI belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
With an excellent Return On Equity value of 21.56%, NVMI belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
NVMI has a Return On Invested Capital of 17.40%. This is amongst the best in the industry. NVMI outperforms 91.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVMI is above the industry average of 10.58%.
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 90.00% of the companies in the same industry.
NVMI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.71%, NVMI belongs to the best of the industry, outperforming 88.18% of the companies in the same industry.
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.
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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NVMI is still creating some value.
The number of shares outstanding for NVMI has been increased compared to 1 year ago.
Compared to 5 years ago, NVMI has more shares outstanding
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 | 0.82 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC12.1%
2.3 Liquidity
A Current Ratio of 2.18 indicates that NVMI has no problem at all paying its short term obligations.
With a Current ratio value of 2.18, NVMI is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.74 indicates that NVMI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.74, NVMI is not doing good in the industry: 66.36% of the companies in the same industry are doing better.
| 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!
The Revenue has been growing by 24.49% on average over the past years. This is a very strong growth!
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
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.
NVMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.26% yearly.
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 38.15, which means the current valuation is very expensive for NVMI.
The rest of the industry has a similar Price/Earnings ratio as NVMI.
Compared to an average S&P500 Price/Earnings ratio of 27.45, NVMI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 30.61, the valuation of NVMI can be described as expensive.
NVMI's Price/Forward Earnings ratio is in line with the industry average.
NVMI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.15 | ||
| Fwd PE | 30.61 |
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 the industry average as 68.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.9 | ||
| EV/EBITDA | 32.9 |
4.3 Compensation for Growth
NVMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NVMI has an outstanding profitability rating, which 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)1.31
PEG (5Y)1.15
EPS Next 2Y18.06%
EPS Next 3Y14.08%
5. Dividend
5.1 Amount
No dividends for NVMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NVMI (7/3/2025, 7:54:51 PM)
284.96
+8.53 (+3.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.6%
Inst Owner Change-2.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.38B
Analysts84.29
Price Target258.58 (-9.26%)
Short Float %4.94%
Short Ratio5.72
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)-9.33%
PT rev (3m)-10.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0.67%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.15 | ||
| Fwd PE | 30.61 | ||
| P/S | 11.26 | ||
| P/FCF | 37.9 | ||
| P/OCF | 34.28 | ||
| P/B | 8.53 | ||
| P/tB | 9.88 | ||
| EV/EBITDA | 32.9 |
EPS(TTM)7.47
EY2.62%
EPS(NY)9.31
Fwd EY3.27%
FCF(TTM)7.52
FCFY2.64%
OCF(TTM)8.31
OCFY2.92%
SpS25.3
BVpS33.41
TBVpS28.85
PEG (NY)1.31
PEG (5Y)1.15
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
WACC12.1%
ROIC/WACC1.44
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%