NOVA LTD (NVMI) Stock Fundamental Analysis
NASDAQ:NVMI - Nasdaq - IL0010845571 - Common Stock - Currency: USD
Overall NVMI gets a fundamental rating of 6 out of 10. We evaluated NVMI against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While NVMI belongs to the best of the industry regarding profitability, 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! These ratings could make NVMI a good candidate 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.
NVMI had positive earnings in each of the past 5 years.
In the past 5 years NVMI always reported a positive cash flow from operatings.
1.2 Ratios
NVMI's Return On Assets of 12.85% is amongst the best of the industry. NVMI outperforms 80.56% of its industry peers.
The Return On Equity of NVMI (18.89%) is better than 83.33% of its industry peers.
The Return On Invested Capital of NVMI (15.15%) is better than 87.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVMI is above the industry average of 11.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.85% | ||
| ROE | 18.89% | ||
| ROIC | 15.15% |
ROA(3y)12.61%
ROA(5y)10.79%
ROE(3y)20.56%
ROE(5y)17.16%
ROIC(3y)16.39%
ROIC(5y)13.3%
1.3 Margins
NVMI has a Profit Margin of 28.01%. This is amongst the best in the industry. NVMI outperforms 89.81% of its industry peers.
In the last couple of years the Profit Margin of NVMI has grown nicely.
NVMI's Operating Margin of 27.09% is amongst the best of the industry. NVMI outperforms 87.04% of its industry peers.
In the last couple of years the Operating Margin of NVMI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 57.39%, NVMI belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
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 | 27.09% | ||
| PM (TTM) | 28.01% | ||
| GM | 57.39% |
OM growth 3Y7.36%
OM growth 5Y1.2%
PM growth 3Y13.97%
PM growth 5Y3.97%
GM growth 3Y0.29%
GM growth 5Y-0.43%
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
The number of shares outstanding for NVMI has been increased compared to 5 years ago.
Compared to 1 year ago, NVMI has an improved debt to assets ratio.
2.2 Solvency
NVMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.1
WACC13.82%
2.3 Liquidity
A Current Ratio of 2.44 indicates that NVMI has no problem at all paying its short term obligations.
With a Current ratio value of 2.44, NVMI perfoms like the industry average, outperforming 42.59% of the companies in the same industry.
NVMI has a Quick Ratio of 2.00. This is a normal value and indicates that NVMI is financially healthy and should not expect problems in meeting its short term obligations.
NVMI has a Quick ratio (2.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.08% over the past year.
NVMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.26% yearly.
NVMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.39%.
Measured over the past years, NVMI shows a quite strong growth in Revenue. The Revenue has been growing by 15.58% on average per year.
EPS 1Y (TTM)27.08%
EPS 3Y33.09%
EPS 5Y18.26%
EPS Q2Q%41.46%
Revenue 1Y (TTM)14.39%
Revenue growth 3Y24.34%
Revenue growth 5Y15.58%
Sales Q2Q%38.95%
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 19.05% on average per year.
NVMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.60% yearly.
EPS Next Y37.02%
EPS Next 2Y25.83%
EPS Next 3Y20.23%
EPS Next 5Y19.05%
Revenue Next Year29.8%
Revenue Next 2Y23.98%
Revenue Next 3Y18.04%
Revenue Next 5Y18.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 40.19, the valuation of NVMI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NVMI is on the same level as its industry peers.
NVMI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.46.
NVMI is valuated quite expensively with a Price/Forward Earnings ratio of 31.73.
NVMI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NVMI to the average of the S&P500 Index (92.56), we can say NVMI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.19 | ||
| Fwd PE | 31.73 |
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.
NVMI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NVMI is cheaper than 71.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.6 | ||
| EV/EBITDA | 33.73 |
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.
NVMI's earnings are expected to grow with 20.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)2.2
EPS Next 2Y25.83%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
NVMI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NOVA LTD
NASDAQ:NVMI (1/31/2025, 4:30:01 PM)
After market: 245.18 0 (0%)245.18
+3.17 (+1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.73%
Inst Owner Change-0.3%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.12B
Analysts80
Price Target238.36 (-2.78%)
Short Float %4.06%
Short Ratio5.88
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)9.04%
Min EPS beat(2)1.68%
Max EPS beat(2)16.4%
EPS beat(4)4
Avg EPS beat(4)8.24%
Min EPS beat(4)1.68%
Max EPS beat(4)16.4%
EPS beat(8)8
Avg EPS beat(8)7.82%
EPS beat(12)12
Avg EPS beat(12)7.65%
EPS beat(16)16
Avg EPS beat(16)9.5%
Revenue beat(2)2
Avg Revenue beat(2)2.97%
Min Revenue beat(2)2.11%
Max Revenue beat(2)3.82%
Revenue beat(4)4
Avg Revenue beat(4)2.59%
Min Revenue beat(4)1.65%
Max Revenue beat(4)3.82%
Revenue beat(8)6
Avg Revenue beat(8)1.47%
Revenue beat(12)9
Avg Revenue beat(12)1.43%
Revenue beat(16)13
Avg Revenue beat(16)2.71%
PT rev (1m)-3.91%
PT rev (3m)-2.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)26.04%
EPS NY rev (1m)0%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)17.98%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.19 | ||
| Fwd PE | 31.73 | ||
| P/S | 11.63 | ||
| P/FCF | 39.6 | ||
| P/OCF | 36.23 | ||
| P/B | 7.84 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 33.73 |
EPS(TTM)6.1
EY2.49%
EPS(NY)7.73
Fwd EY3.15%
FCF(TTM)6.19
FCFY2.53%
OCF(TTM)6.77
OCFY2.76%
SpS21.08
BVpS31.27
TBVpS28.32
PEG (NY)1.09
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.85% | ||
| ROE | 18.89% | ||
| ROCE | 17.16% | ||
| ROIC | 15.15% | ||
| ROICexc | 40.12% | ||
| ROICexgc | 52.42% | ||
| OM | 27.09% | ||
| PM (TTM) | 28.01% | ||
| GM | 57.39% | ||
| FCFM | 29.37% |
ROA(3y)12.61%
ROA(5y)10.79%
ROE(3y)20.56%
ROE(5y)17.16%
ROIC(3y)16.39%
ROIC(5y)13.3%
ROICexc(3y)50.75%
ROICexc(5y)40.02%
ROICexgc(3y)64.7%
ROICexgc(5y)50.14%
ROCE(3y)18.56%
ROCE(5y)15.06%
ROICexcg growth 3Y7.65%
ROICexcg growth 5Y-9.03%
ROICexc growth 3Y3.46%
ROICexc growth 5Y-8.19%
OM growth 3Y7.36%
OM growth 5Y1.2%
PM growth 3Y13.97%
PM growth 5Y3.97%
GM growth 3Y0.29%
GM growth 5Y-0.43%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 96.52% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.3% | ||
| Profit Quality | 104.87% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 2 | ||
| Altman-Z | N/A |
F-Score7
WACC13.82%
ROIC/WACC1.1
Cap/Depr(3y)101.77%
Cap/Depr(5y)129.55%
Cap/Sales(3y)2.73%
Cap/Sales(5y)4.01%
Profit Quality(3y)95%
Profit Quality(5y)90.53%
High Growth Momentum
Growth
EPS 1Y (TTM)27.08%
EPS 3Y33.09%
EPS 5Y18.26%
EPS Q2Q%41.46%
EPS Next Y37.02%
EPS Next 2Y25.83%
EPS Next 3Y20.23%
EPS Next 5Y19.05%
Revenue 1Y (TTM)14.39%
Revenue growth 3Y24.34%
Revenue growth 5Y15.58%
Sales Q2Q%38.95%
Revenue Next Year29.8%
Revenue Next 2Y23.98%
Revenue Next 3Y18.04%
Revenue Next 5Y18.6%
EBIT growth 1Y22.4%
EBIT growth 3Y33.49%
EBIT growth 5Y16.97%
EBIT Next Year43.27%
EBIT Next 3Y22.04%
EBIT Next 5YN/A
FCF growth 1Y139.27%
FCF growth 3Y25.42%
FCF growth 5Y26.06%
OCF growth 1Y117.71%
OCF growth 3Y27%
OCF growth 5Y27.2%