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NVMI

Nova NasdaqGS:NVMI Stock Report

Last Price

US$83.49

Market Cap

US$2.4b

7D

-12.9%

1Y

-15.6%

Updated

01 Jul, 2022

Data

Company Financials +
NVMI fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance6/6
Financial Health5/6
Dividends0/6

NVMI Stock Overview

Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally.

Nova Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nova
Historical stock prices
Current Share PriceUS$83.49
52 Week HighUS$149.15
52 Week LowUS$82.00
Beta1.19
1 Month Change-21.87%
3 Month Change-22.08%
1 Year Change-15.57%
3 Year Change222.98%
5 Year Change263.00%
Change since IPO280.58%

Recent News & Updates

Jun 28
We Think Nova (NASDAQ:NVMI) Can Manage Its Debt With Ease

We Think Nova (NASDAQ:NVMI) Can Manage Its Debt With Ease

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jun 17

Nova: Now Is Not The Time

NVMI is in great shape with the company finishing with another record-setting quarter in what will likely be a year for the record books. The strong earnings growth stands in sharp contrast to the stock’s performance, which continues to go down. The stock has dropped by a third, but multiples could still be too high in today’s changing macro environment. Betting on NVMI could be warranted down the road, but not at the moment with current conditions unlikely to change anytime soon.

Jun 01
Calculating The Fair Value Of Nova Ltd. (NASDAQ:NVMI)

Calculating The Fair Value Of Nova Ltd. (NASDAQ:NVMI)

How far off is Nova Ltd. ( NASDAQ:NVMI ) from its intrinsic value? Using the most recent financial data, we'll take a...

May 18
Why We Like The Returns At Nova (NASDAQ:NVMI)

Why We Like The Returns At Nova (NASDAQ:NVMI)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

NVMIUS SemiconductorUS Market
7D-12.9%-9.5%-2.5%
1Y-15.6%-24.2%-21.2%

Return vs Industry: NVMI exceeded the US Semiconductor industry which returned -20.9% over the past year.

Return vs Market: NVMI exceeded the US Market which returned -21.7% over the past year.

Price Volatility

Is NVMI's price volatile compared to industry and market?
NVMI volatility
NVMI Average Weekly Movement7.2%
Semiconductor Industry Average Movement8.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: NVMI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NVMI's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1993819Eitan Oppenhaimhttps://www.novami.com

Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging. The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers.

Nova Fundamentals Summary

How do Nova's earnings and revenue compare to its market cap?
NVMI fundamental statistics
Market CapUS$2.40b
Earnings (TTM)US$109.65m
Revenue (TTM)US$465.94m

21.9x

P/E Ratio

5.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NVMI income statement (TTM)
RevenueUS$465.94m
Cost of RevenueUS$197.75m
Gross ProfitUS$268.19m
Other ExpensesUS$158.54m
EarningsUS$109.65m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.82
Gross Margin57.56%
Net Profit Margin23.53%
Debt/Equity Ratio39.4%

How did NVMI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NVMI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NVMI?

Other financial metrics that can be useful for relative valuation.

NVMI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.7x
Enterprise Value/EBITDA15.1x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does NVMI's PE Ratio compare to its peers?

NVMI PE Ratio vs Peers
The above table shows the PE ratio for NVMI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.8x
ACLS Axcelis Technologies
12.8x13.4%US$1.6b
FORM FormFactor
28.5x18.5%US$2.7b
KLIC Kulicke and Soffa Industries
4.6x-19.0%US$2.3b
AMKR Amkor Technology
5.4x5.0%US$3.8b
NVMI Nova
21.9x8.9%US$2.4b

Price-To-Earnings vs Peers: NVMI is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the peer average (12.8x).


Price to Earnings Ratio vs Industry

How does NVMI's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: NVMI is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the US Semiconductor industry average (17.4x)


Price to Earnings Ratio vs Fair Ratio

What is NVMI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NVMI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.9x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: NVMI is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).


Share Price vs Fair Value

What is the Fair Price of NVMI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NVMI ($83.49) is trading below our estimate of fair value ($98.61)

Significantly Below Fair Value: NVMI is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: NVMI is poor value based on its PEG Ratio (2.5x)


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Future Growth

How is Nova forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVMI's forecast earnings growth (8.9% per year) is above the savings rate (1.9%).

Earnings vs Market: NVMI's earnings (8.9% per year) are forecast to grow slower than the US market (13.6% per year).

High Growth Earnings: NVMI's earnings are forecast to grow, but not significantly.

Revenue vs Market: NVMI's revenue (8.9% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: NVMI's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVMI's Return on Equity is forecast to be high in 3 years time (20.8%)


Discover growth companies

Past Performance

How has Nova performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NVMI has high quality earnings.

Growing Profit Margin: NVMI's current net profit margins (23.5%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: NVMI's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: NVMI's earnings growth over the past year (103.7%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: NVMI earnings growth over the past year (103.7%) exceeded the Semiconductor industry 70.4%.


Return on Equity

High ROE: NVMI's Return on Equity (22.1%) is considered high.


Discover strong past performing companies

Financial Health

How is Nova's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NVMI's short term assets ($540.2M) exceed its short term liabilities ($311.7M).

Long Term Liabilities: NVMI's short term assets ($540.2M) exceed its long term liabilities ($71.7M).


Debt to Equity History and Analysis

Debt Level: NVMI has more cash than its total debt.

Reducing Debt: Insufficient data to determine if NVMI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NVMI's debt is well covered by operating cash flow (57.4%).

Interest Coverage: NVMI's interest payments on its debt are well covered by EBIT (107.4x coverage).


Balance Sheet


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Dividend

What is Nova current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NVMI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NVMI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NVMI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NVMI's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NVMI has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Eitan Oppenhaim (56 yo)

8.92yrs

Tenure

US$2,110,748

Compensation

Mr. Eitan Oppenhaim has been the Chief Executive Officer and President of Nova Measuring Instruments Ltd. since July 31, 2013. Mr. Oppenhaim has been Director of Nova Measuring Instruments Ltd.since Octob...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Eitan's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Eitan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NVMI's management team is seasoned and experienced (7.7 years average tenure).


Board Members

Experienced Board: NVMI's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nova Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Nova Ltd.
  • Ticker: NVMI
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Implied Market Cap: US$2.397b
  • Shares outstanding: 28.71m
  • Website: https://www.novami.com

Number of Employees


Location

  • Nova Ltd.
  • 5 David Fikes Street
  • 10th Floor
  • Rehovot
  • 7610201
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.