NasdaqGS:NVMI

Stock Analysis Report

Executive Summary

Nova Measuring Instruments Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel.

Rewards

PE ratio (30.7x) is below the Semiconductor industry average (38.2x)

Earnings are forecast to grow 21.99% per year

Risk Analysis

No risks detected for NVMI from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Nova Measuring Instruments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NVMI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

NVMI

0.7%

US Semiconductor

0.06%

US Market


1 Year Return

50.1%

NVMI

40.4%

US Semiconductor

19.3%

US Market

Return vs Industry: NVMI exceeded the US Semiconductor industry which returned 40.4% over the past year.

Return vs Market: NVMI exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

NVMIIndustryMarket
7 Day-4.2%0.7%0.06%
30 Day-6.4%3.2%1.7%
90 Day12.3%16.7%9.0%
1 Year50.1%50.1%43.1%40.4%21.8%19.3%
3 Year116.6%116.6%96.2%85.6%49.5%39.9%
5 Year242.3%242.3%157.0%132.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Nova Measuring Instruments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nova Measuring Instruments undervalued compared to its fair value and its price relative to the market?

30.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NVMI ($38.71) is trading above our estimate of fair value ($7.59)

Significantly Below Fair Value: NVMI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NVMI is good value based on its PE Ratio (30.7x) compared to the Semiconductor industry average (38.2x).

PE vs Market: NVMI is poor value based on its PE Ratio (30.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: NVMI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NVMI is overvalued based on its PB Ratio (3.4x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Nova Measuring Instruments forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVMI's forecast earnings growth (22% per year) is above the savings rate (1.7%).

Earnings vs Market: NVMI's earnings (22% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NVMI's revenue (11.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NVMI's revenue (11.9% 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 low in 3 years time (18.4%).


Next Steps

Past Performance

How has Nova Measuring Instruments performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVMI has high quality earnings.

Growing Profit Margin: NVMI's current net profit margins (15.6%) are lower than last year (21.7%).


Past Earnings Growth Analysis

Earnings Trend: NVMI's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: NVMI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NVMI had negative earnings growth (-35.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-28%).


Return on Equity

High ROE: NVMI's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nova Measuring Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: NVMI's short term assets ($306.2M) exceed its short term liabilities ($48.1M).

Long Term Liabilities: NVMI's short term assets ($306.2M) exceed its long term liabilities ($37.8M).


Debt to Equity History and Analysis

Debt Level: NVMI is debt free.

Reducing Debt: NVMI has not had any debt for past 5 years.

Debt Coverage: NVMI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NVMI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NVMI has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NVMI's debt is covered by short term assets.


Next Steps

Dividend

What is Nova Measuring Instruments's current dividend yield, its reliability and sustainability?


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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NVMI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Eitan Oppenhaim (53yo)

6.6yrs

Tenure

US$1,836,306

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: Eitan's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD2.48M).

Compensation vs Earnings: Eitan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eitan Oppenhaim
President6.6yrsUS$1.84mno data
Dror David
Chief Financial Officer14.3yrsUS$628.90kno data
Gabi Sharon
Corporate Vice President of Operations13.4yrsUS$456.55kno data
Shay Wolfling
Chief Technology Officer9.1yrsUS$607.71kno data
Gabriel Waisman
Chief Business Officer4.1yrsUS$523.58kno data
Zohar Gil
Corporate Vice President of Marketing & Business Development3.9yrsno datano data
Sharon Dayan
Chief Human Resources Officer2.1yrsno datano data
Dov Farkash
Corporate Executive Vice President of Strategic Development2.5yrsUS$405.81kno data

5.3yrs

Average Tenure

51yo

Average Age

Experienced Management: NVMI's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eitan Oppenhaim
President6.6yrsUS$1.84mno data
Miron Kenneth
Independent Director2.2yrsno datano data
Dafna Gruber
Independent Director4.8yrsno datano data
Michael Brunstein
Chairman of the Board13.7yrsUS$249.54kno data
Raanan Cohen
Independent Director6yrsno datano data
Zehava Simon
Independent Director5.7yrsno datano data
Avi Cohen
Independent Director12yrsno datano data

5.7yrs

Average Tenure

63yo

Average Age

Experienced Board: NVMI's board of directors are considered experienced (5.7 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 Measuring Instruments Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nova Measuring Instruments Ltd.
  • Ticker: NVMI
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$1.083b
  • Shares outstanding: 27.97m
  • Website: https://www.novami.com

Number of Employees


Location

  • Nova Measuring Instruments Ltd.
  • Building 22
  • Weizmann Science Park
  • Rehovot
  • 7610201
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVMINasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDApr 2000
NVMITASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSApr 2000
NMRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2000
0YAALSE (London Stock Exchange)YesOrdinary SharesGBILSApr 2000

Biography

Nova Measuring Instruments Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel. Its product portfolio includes integrated and stand-alone metrology platforms for dimensional, films, and material metrology measurements for process control across various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, and deposition. The company serves various sectors of the integrated circuit manufacturing industry, including logic, ASIC, foundries, and memory manufactures, as well as end users and process equipment manufacturers worldwide. Nova Measuring Instruments Ltd. was founded in 1993 and is headquartered in Rehovot, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:41
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.