NasdaqGS:ORBK

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Excellent balance sheet with solid track record.

Risks

  • Orbotech is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Orbotech's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

NasdaqGS:ORBK

4.1%

US Electronic

1.2%

US Market


1 Year Return

22.7%

NasdaqGS:ORBK

-0.7%

US Electronic

1.7%

US 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.


Share holder returns

ORBKIndustryMarket
7 Day5.0%4.1%1.2%
30 Day14.2%11.2%4.9%
90 Day19.7%6.9%3.7%
1 Year22.7%22.7%0.2%-0.7%3.9%1.7%
3 Year194.8%194.8%58.6%54.2%47.2%37.7%
5 Year364.5%364.5%69.0%60.6%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Orbotech's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Orbotech's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Orbotech is poor value based on expected growth next year.


Price Based on Value of Assets

Orbotech is overvalued based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

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

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Orbotech's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Orbotech's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Orbotech's revenue growth is positive but not above the United States of America market average.

Orbotech's earnings growth is positive but not above the United States of America market average.

Orbotech's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Orbotech will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Orbotech performed over the past 5 years?

33.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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%).


Return on Equity

Orbotech has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Orbotech used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Orbotech has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Orbotech's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 18x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Asher Levy (59yo)

6.1yrs

Tenure

US$3,143,043

Compensation

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 se ...


CEO Compensation Analysis

Asher's remuneration is lower than average for companies of similar size in United States of America.

Asher's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.1yrs

Average Tenure

59yo

Average Age

The average tenure for the Orbotech management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.3yrs

Average Tenure

72yo

Average Age

The average tenure for the Orbotech board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Yochai Richter (76yo)

    Co-Founder & Active Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: US$2.02m
  • Amichai Steimberg (56yo)

    President & COO

    • Tenure: 6.1yrs
    • Compensation: US$2.21m
  • Asher Levy (59yo)

    Chief Executive Officer

    • Tenure: 6.1yrs
    • Compensation: US$3.14m
  • Kobi Richter (73yo)

    Co-Founder & Director

    • Tenure: 7.1yrs
  • Kevin Crofton (57yo)

    Corporate VP & President of SPTS Technologies

    • Tenure: 0yrs
    • Compensation: US$2.14m
  • Abraham Gross (67yo)

    Corporate Executive VP

    • Tenure: 12.8yrs
  • Alon Rozner (46yo)

    Corporate VP & CFO

    • Tenure: 1.1yrs
  • Gil Oron

    Corporate Executive VP of Global Business

    • Tenure: 0yrs
    • Compensation: US$717.79k
  • Leah Mor

    Chief Information Officer & VP of IT

    • Tenure: 0yrs
  • Rami Rozen

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Yochai Richter (76yo)

    Co-Founder & Active Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: US$2.02m
  • Arie Weisberg (68yo)

    Independent Director

    • Tenure: 9.1yrs
  • Dan Falk (73yo)

    Independent Director

    • Tenure: 22.1yrs
  • Michael Anghel (79yo)

    External Director

    • Tenure: 10.4yrs
  • Shimon Ullman (70yo)

    Independent Director

    • Tenure: 27.1yrs
  • Kobi Richter (73yo)

    Co-Founder & Director

    • Tenure: 7.1yrs
  • Dita Bronicki (77yo)

    Independent Director

    • Tenure: 19.1yrs
  • Avner Hermoni (71yo)

    External Director

    • Tenure: 7.1yrs
  • Joseph Tenne (63yo)

    External Director

    • Tenure: 4.6yrs
  • Eliezer Tokman (68yo)

    Independent Director

    • Tenure: 12.1yrs

Company Information

Orbotech Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orbotech Ltd.
  • Ticker: ORBK
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$3.194b
  • Shares outstanding: 48.57m
  • Website: https://www.orbotech.com

Number of Employees


Location

  • Orbotech Ltd.
  • 7 Sanhedrin Boulevard
  • North Industrial Zone
  • Yavne
  • 81101
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORBKNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDAug 1984
ORBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1984

Biography

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 com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/02/21 23:50
End of Day Share Price2019/02/19 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.