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Orbotech

Nasdaq:ORBK
Snowflake Description

Excellent balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ORBK
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Orbotech Ltd. provides yield-enhancing and process-enabling solutions for the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), semiconductor devices (SDs), and other electronic components in China, Taiwan, North America, Europe, Japan, Korea, and internationally. The last earnings update was 105 days ago. More info.


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ORBK Share Price and Events
7 Day Returns
5%
NasdaqGS:ORBK
2.3%
US Electronic
1.4%
US Market
1 Year Returns
22.7%
NasdaqGS:ORBK
2.1%
US Electronic
2.3%
US Market
ORBK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Orbotech (ORBK) 5% 14.2% 19.7% 22.7% 194.8% 364.5%
US Electronic 2.3% 12.7% 13% 2.1% 71.5% 63.7%
US Market 1.4% 5.6% 5.7% 2.3% 44.2% 40.9%
1 Year Return vs Industry and Market
  • ORBK outperformed the Electronic industry which returned 2.1% over the past year.
  • ORBK outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
ORBK
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Orbotech undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Orbotech to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Orbotech.

NasdaqGS:ORBK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ORBK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.059 (1 + (1- 23%) (1.77%))
1.073
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.073 * 7.27%)
10.53%

Discounted Cash Flow Calculation for NasdaqGS:ORBK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Orbotech is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ORBK DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 152.24 176.84 205.42 238.61 276.79
Source Est @ 16.16% Est @ 16.16% Est @ 16.16% Est @ 16.16% Est @ 16%, capped from 16.16%
Present Value
Discounted (@ 10.53%)
137.73 144.74 152.11 159.85 167.76
Present value of next 5 years cash flows $762.19
NasdaqGS:ORBK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $276.79 × (1 + 2.73%) ÷ (10.53% – 2.73%)
$3,643.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $3,643.77 ÷ (1 + 10.53%)5
$2,208.40
NasdaqGS:ORBK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $762.19 + $2,208.40
$2,970.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,970.59 / 48.57
$61.16
NasdaqGS:ORBK Discount to Share Price
Calculation Result
Value per share (USD) From above. $61.16
Current discount Discount to share price of $65.77
= -1 x ($65.77 - $61.16) / $61.16
-7.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Orbotech is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Orbotech's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Orbotech's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ORBK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $3.15
NasdaqGS:ORBK Share Price ** NasdaqGS (2019-02-19) in USD $65.77
United States of America Electronic Industry PE Ratio Median Figure of 90 Publicly-Listed Electronic Companies 20.47x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 17.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Orbotech.

NasdaqGS:ORBK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ORBK Share Price ÷ EPS (both in USD)

= 65.77 ÷ 3.15

20.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Orbotech is overvalued based on earnings compared to the US Electronic industry average.
  • Orbotech is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Orbotech's expected growth come at a high price?
Raw Data
NasdaqGS:ORBK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
8.7%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.4x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NasdaqGS:ORBK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.91x ÷ 8.7%

2.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Orbotech is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Orbotech's assets?
Raw Data
NasdaqGS:ORBK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $20.93
NasdaqGS:ORBK Share Price * NasdaqGS (2019-02-19) in USD $65.77
United States of America Electronic Industry PB Ratio Median Figure of 150 Publicly-Listed Electronic Companies 2.13x
United States of America Market PB Ratio Median Figure of 5,129 Publicly-Listed Companies 1.87x
NasdaqGS:ORBK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ORBK Share Price ÷ Book Value per Share (both in USD)

= 65.77 ÷ 20.93

3.14x

* Primary Listing of Orbotech.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Orbotech is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess Orbotech's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Orbotech has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Orbotech expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Orbotech expected to grow at an attractive rate?
  • Orbotech's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Orbotech's earnings growth is positive but not above the United States of America market average.
  • Orbotech's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ORBK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ORBK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 8.7%
NasdaqGS:ORBK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3.7%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17.8%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ORBK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ORBK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2019-12-31 1,087 180 157 2
2018-12-31 1,049 123 128 2
NasdaqGS:ORBK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 1,036 197 151
2018-06-30 1,021 172 159
2018-03-31 964 119 148
2017-12-31 901 130 132
2017-09-30 859 95 102
2017-06-30 818 89 90
2017-03-31 804 83 79
2016-12-31 806 108 79
2016-09-30 780 94 70
2016-06-30 765 80 61
2016-03-31 758 83 61
2015-12-31 753 89 57

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Orbotech's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • Orbotech's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ORBK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Orbotech Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ORBK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2019-12-31 3.15 3.16 3.13 2.00
2018-12-31 2.96 3.46 2.58 3.00
NasdaqGS:ORBK Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 3.15
2018-06-30 3.30
2018-03-31 3.07
2017-12-31 2.76
2017-09-30 2.14
2017-06-30 1.89
2017-03-31 1.68
2016-12-31 1.74
2016-09-30 1.57
2016-06-30 1.41
2016-03-31 1.42
2015-12-31 1.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Orbotech will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Orbotech's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Orbotech has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Orbotech performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Orbotech's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Orbotech has delivered over 20% year on year earnings growth in the past 5 years.
  • Orbotech's 1-year earnings growth exceeds its 5-year average (48.3% vs 33.8%)
  • Orbotech's earnings growth has exceeded the US Electronic industry average in the past year (48.3% vs 40.4%).
Earnings and Revenue History
Orbotech's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Orbotech Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ORBK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 1,036.17 151.49 162.44 139.47
2018-06-30 1,020.61 158.82 158.14 135.03
2018-03-31 963.76 147.73 150.48 130.35
2017-12-31 900.86 132.39 143.36 125.43
2017-09-30 859.02 102.14 135.02 117.71
2017-06-30 818.31 90.29 129.52 113.13
2017-03-31 803.62 78.60 128.29 109.20
2016-12-31 806.40 79.44 124.36 107.10
2016-09-30 779.60 69.85 120.83 107.65
2016-06-30 765.15 61.06 119.86 105.74
2016-03-31 758.16 60.72 118.64 104.64
2015-12-31 752.52 56.77 117.49 103.85
2015-09-30 761.77 53.85 121.11 104.30
2015-06-30 738.55 45.31 114.53 101.90
2015-03-31 662.74 40.89 105.05 95.97
2014-12-31 582.75 35.38 95.67 88.65
2014-09-30 507.49 34.87 87.46 79.21
2014-06-30 453.65 39.37 82.93 73.81
2014-03-31 449.31 41.28 79.88 71.72
2013-12-31 440.00 40.00 77.55 69.57
2013-09-30 428.61 26.65 69.34 71.05
2013-06-30 410.74 -30.92 69.05 70.59
2013-03-31 399.73 -42.21 70.33 70.92
2012-12-31 387.01 -45.58 74.65 68.70
2012-09-30 433.76 -42.30 76.05 75.66
2012-06-30 479.25 18.10 74.78 79.05
2012-03-31 531.32 36.53 73.87 82.03

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Orbotech has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Orbotech used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • Orbotech has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Orbotech's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Orbotech has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Orbotech's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Orbotech's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Orbotech is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Orbotech's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Orbotech's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 18x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Orbotech Company Filings, last reported 4 months ago.

NasdaqGS:ORBK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 1,018.47 56.46 399.56
2018-06-30 983.12 56.35 351.58
2018-03-31 945.30 72.60 294.20
2017-12-31 911.87 72.48 319.92
2017-09-30 850.59 72.37 238.93
2017-06-30 809.13 72.25 218.25
2017-03-31 778.36 88.50 202.39
2016-12-31 752.78 88.37 217.08
2016-09-30 724.05 108.16 201.16
2016-06-30 696.06 108.03 180.83
2016-03-31 587.17 207.80 159.69
2015-12-31 567.76 232.31 172.06
2015-09-30 549.21 268.13 177.11
2015-06-30 532.52 276.13 177.33
2015-03-31 511.55 295.86 161.48
2014-12-31 496.88 296.49 146.37
2014-09-30 483.29 303.12 142.52
2014-06-30 475.78 0.00 208.48
2014-03-31 473.34 0.00 198.95
2013-12-31 467.15 0.00 205.07
2013-09-30 457.64 8.00 213.59
2013-06-30 453.52 16.00 212.56
2013-03-31 451.06 24.00 214.29
2012-12-31 447.51 64.00 261.92
2012-09-30 448.74 72.00 265.14
2012-06-30 492.48 80.00 266.64
2012-03-31 494.50 88.00 254.72
  • Orbotech's level of debt (5.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.7% vs 5.5% today).
  • Debt is well covered by operating cash flow (348.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 172.1x coverage).
X
Financial health checks
We assess Orbotech's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Orbotech has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Orbotech's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Orbotech dividends.
If you bought $2,000 of Orbotech shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Orbotech's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Orbotech's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ORBK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2001 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ORBK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2019-12-31
2018-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Orbotech has not reported any payouts.
  • Unable to verify if Orbotech's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Orbotech's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Orbotech has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Orbotech's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Orbotech afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Orbotech has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Orbotech's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Asher Levy
COMPENSATION $3,143,043
AGE 59
TENURE AS CEO 6.1 years
CEO Bio

Mr. Asher Levy has been the Chief Executive Officer of Orbotech Ltd. since January 1, 2013. Mr. Levy served as President of Global Business at Orbotech Ltd since June 2010 until December 2012 . Mr. Levy served as Executive Vice President for Business and Strategy since July 2006 to July 1, 2009 and served as Corporate Vice President from November 2002 to July 2006 and President of the Printed Circuit Board Division. From November 2000 to October 2002, he served as the Managing Director of Orbotech Technology Ventures. From June 1997 to July 2000 he served as the President of Orbotech Pacific Ltd. He joined Orbot in 1990 and held various managerial and marketing positions until 1997, including vice president for sales and marketing at Orbotech, Inc. Prior to joining Orbot, Mr. Levy worked for Apple Computer, Inc. and Digital Equipment Corporation. He serves as a Director of Orbotech Holding U.K. Ltd. Mr. Levy holds a bachelor's degree in industrial engineering and management from Ben-Gurion University and a master's degree in business administration from Tel Aviv University. He is a graduate of the advanced management program at Harvard Business School.

CEO Compensation
  • Asher's compensation has increased by more than 20% in the past year.
  • Asher's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Orbotech management team in years:

6.1
Average Tenure
59
Average Age
  • The average tenure for the Orbotech management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Yochai Richter

TITLE
Co-Founder & Active Chairman of the Board
COMPENSATION
$2M
AGE
76

Asher Levy

TITLE
Chief Executive Officer
COMPENSATION
$3M
AGE
59
TENURE
6.1 yrs

Amichai Steimberg

TITLE
President & COO
COMPENSATION
$2M
AGE
56
TENURE
6.1 yrs

Kobi Richter

TITLE
Co-Founder & Director
AGE
73

Gil Oron

TITLE
Corporate Executive VP of Global Business
COMPENSATION
$718K

Kevin Crofton

TITLE
Corporate VP & President of SPTS Technologies
COMPENSATION
$2M
AGE
57

Alon Rozner

TITLE
Corporate VP & CFO
AGE
46
TENURE
1.1 yrs

Abraham Gross

TITLE
Corporate Executive VP
AGE
67
TENURE
12.8 yrs

Leah Mor

TITLE
Chief Information Officer & VP of IT

Rami Rozen

TITLE
Director of Investor Relations
Board of Directors Tenure

Average tenure and age of the Orbotech board of directors in years:

11.3
Average Tenure
72
Average Age
  • The average tenure for the Orbotech board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Kobi Richter

TITLE
Co-Founder & Director
AGE
73
TENURE
7.1 yrs

Dan Falk

TITLE
Independent Director
AGE
73
TENURE
22.1 yrs

Yochai Richter

TITLE
Co-Founder & Active Chairman of the Board
COMPENSATION
$2M
AGE
76
TENURE
12.8 yrs

Michael Anghel

TITLE
External Director
AGE
79
TENURE
10.4 yrs

Arie Weisberg

TITLE
Independent Director
AGE
68
TENURE
9.1 yrs

Shimon Ullman

TITLE
Independent Director
AGE
70
TENURE
27.1 yrs

Eliezer Tokman

TITLE
Independent Director
AGE
68
TENURE
12.1 yrs

Dita Bronicki

TITLE
Independent Director
AGE
77
TENURE
19.1 yrs

Avner Hermoni

TITLE
External Director
AGE
71
TENURE
7.1 yrs

Joseph Tenne

TITLE
External Director
AGE
63
TENURE
4.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Orbotech's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Orbotech has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Interested In Orbotech Ltd. (NASDAQ:ORBK)? Here's What Its Recent Performance Looks Like

For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. … Could ORBK beat the long-term trend and outperform its industry. … ORBK's trailing twelve-month earnings (from 30 September 2018) of US$151m has.

Simply Wall St -

Is Orbotech Ltd (NASDAQ:ORBK) A High Quality Stock To Own?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.15. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Orbotech Ltd (NASDAQ:ORBK)'s Return on Capital

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … To understand Orbotech’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

Estimating The Fair Value Of Orbotech Ltd (NASDAQ:ORBK)

Does the share price for Orbotech Ltd (NASDAQ:ORBK) reflect it's really worth? … Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value.

Simply Wall St -

What Does Orbotech Ltd's (NASDAQ:ORBK) Ownership Structure Look Like?

I am going to take a deep dive into Orbotech Ltd’s (NASDAQ:ORBK) most recent ownership structure, not a frequent subject of discussion among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … Therefore, it is beneficial for us to examine ORBK's ownership structure in more detail.

Simply Wall St -

Is Orbotech Ltd's (NASDAQ:ORBK) 15.45% ROE Strong Compared To Its Industry?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … If ORBK borrows debt to invest in its business, its profits will be higher.

Simply Wall St -

What Do Expectations Tell Us About Orbotech Ltd's (NASDAQ:ORBK) Margins In The Next Few Years?

As analysts project … earnings growth of 10.13% annualised … it's important to take a step back

Simply Wall St -

Orbotech Ltd (NASDAQ:ORBK): Financial Strength Analysis

Let’s take a look at ORBK’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … Check out our latest analysis for Orbotech

Simply Wall St -

Should You Be Tempted To Buy Orbotech Ltd (NASDAQ:ORBK) At Its Current PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Orbotech Ltd (NASDAQ:ORBK). … Orbotech Ltd (NASDAQ:ORBK) is currently trading at a trailing P/E of 19.8x, which is lower than the industry average of 22.4x.

Simply Wall St -

Was Orbotech Ltd's (NASDAQ:ORBK) Earnings Growth Better Than The Industry's?

For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. … Could ORBK beat the long-term trend and outperform its industry. … ORBK's trailing twelve-month earnings (from 31 March 2018) of US$147.73m has

Simply Wall St -

Company Info

Map
Description

Orbotech Ltd. provides yield-enhancing and process-enabling solutions for the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), semiconductor devices (SDs), and other electronic components in China, Taiwan, North America, Europe, Japan, Korea, and internationally. It operates through three segments: Production Solutions for the Electronics Industry, Solar Energy, and Recognition Software. The company designs, develops, manufactures, markets, and services direct imaging, automated optical inspection (AOI), automated optical shaping, via formation laser drilling tools, additive printing solutions, and other production systems used in the manufacture of PCBs; AOI, test, repair, and process monitoring systems for use in the manufacture of FPDs; and etch, physical vapor deposition, chemical vapor deposition, and molecular vapor deposition equipment used in the manufacture of SDs, such as micro-electro-mechanical systems, advanced semiconductor packaging, power and radio frequency devices, and high brightness light emitting diode devices. It is also involved in the research, development, and marketing of products for the deposition of thin film coating of various materials on crystalline silicon photovoltaic wafers for solar energy panels. In addition, the company develops and markets check processing and healthcare payments automation solutions to banks, financial, and other payment processing institutions and healthcare providers through system integrators and solution providers. The company was formerly known as Optrotech Ltd. and changed its name to Orbotech Ltd. as a result of its merger with Orbot Systems Ltd. in October 1992. Orbotech Ltd. was founded in 1981 and is headquartered in Yavne, Israel. As of February 20, 2019, Orbotech Ltd. operates as a subsidiary of KLA-Tencor Corporation.

Details
Name: Orbotech Ltd.
ORBK
Exchange: NasdaqGS
Founded: 1981
$3,194,431,470
48,569,735
Website: http://www.orbotech.com
Address: Orbotech Ltd.
7 Sanhedrin Boulevard,
North Industrial Zone,
Yavne,
81101,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ORBK Ordinary Shares Nasdaq Global Select US USD 09. Aug 1984
DB ORB Ordinary Shares Deutsche Boerse AG DE EUR 09. Aug 1984
Number of employees
Current staff
Staff numbers
2,634
Orbotech employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/21 23:50
End of day share price update: 2019/02/19 00:00
Last estimates confirmation: 2019/02/21
Last earnings filing: 2018/11/08
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.