Camtek Ltd. Net Income jumped on 34.2% and Revenue surged on 31.8%
02/13/2019 • About Camtek Ltd. (
$CAMT) • By InTwits
Camtek Ltd. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 17.9% in 2018, -1.0% in 2017, 5.0% in 2016, -16.9% in 2015, 8.3% in 2014
- Camtek Ltd. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: $2m in 2018, $3m in 2017, $1m in 2016, $2m in 2015, $1m in 2014
- The company has highly profitable business model: ROIC is 21.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 31.8%. Revenue growth showed slowdown in 18Q4 - it was 28.4% YoY. During the last 5 years Revenue growth bottomed in 2015 at -21.4% and was accelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.3 pp from 3.6% to 5.8% in 2018.
Gross Margin increased slightly on 0.67 pp from 48.7% to 49.4% in 2018. During 2014-2018 Gross Margin bottomed in 2016 at 41.0% and was growing since that time. SG&A as a % of Revenue decreased on 2.3 pp from 23.6% to 21.3% in 2018. During the last 5 years SG&A as a % of Revenue topped in 2015 at 27.8% and was declining since that time.
Net Income margin showed almost no change in 2018. During 2014-2018 Net Income margin bottomed in 2015 at -14.6% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.8% in 2018. Camtek Ltd. showed small CAPEX/Revenue decline of 1.4 pp from 3.2% in 2015 to 1.8% in 2018. Average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at high and attractive ROIC (21.6%) and ROE (20.2%). ROIC jumped on 25.4 pp from -3.9% to 21.6% in 2018. ROE increased on 2.5 pp from 17.7% to 20.2% in 2018. During 2014-2018 ROE bottomed in 2015 at -15.1% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash jumped on 25.6%.
Valuation and dividends
The company's trades at EV/EBITDA 12.6x and P/E 17.7x.
Financial and operational results
FY ended 12/31/2018
Camtek Ltd. ($CAMT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 88.3 | 69.4 | 79.2 | 93.5 | 123.2 | 31.8% |
| Gross Profit | 41.0 | 31.8 | 32.5 | 45.5 | 60.8 | 33.6% |
| SG&A | 21.4 | 19.3 | 21.9 | 22.0 | 26.2 | 18.9% |
| EBITDA | 7.4 | -11.7 | 4.0 | -0.9 | 22.0 | |
| Net Income | 3.3 | -10.1 | 4.7 | 14.0 | 18.7 | 34.2% |
Balance Sheet
|
|---|
| Cash | 18.2 | 30.8 | 19.7 | 43.7 | 54.9 | 25.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.6 | 2.2 | 1.3 | 3.1 | 2.2 | -28.5% |
Ratios
|
|---|
| Revenue growth | 3.4% | -21.4% | 14.2% | 18.0% | 31.8% | |
| EBITDA growth | 2,766.5% | -258.7% | -134.0% | -123.0% | -2,504.3% | |
|
|---|
| Gross Margin | 46.4% | 45.9% | 41.0% | 48.7% | 49.4% | 0.7% |
| EBITDA Margin | 8.3% | -16.9% | 5.0% | -1.0% | 17.9% | 18.8% |
| SG&A, % of revenue | 24.3% | 27.8% | 27.6% | 23.6% | 21.3% | -2.3% |
| Net Income Margin | 3.8% | -14.6% | 6.0% | 14.9% | 15.2% | 0.3% |
| CAPEX, % of revenue | 0.6% | 3.2% | 1.6% | 3.4% | 1.8% | -1.5% |
|
|---|
| ROIC | 8.0% | -20.0% | 2.9% | -3.9% | 21.6% | 25.4% |
| ROE | 5.2% | -15.1% | 6.7% | 17.7% | 20.2% | 2.5% |
| Net Debt/EBITDA | -2.5x | | -5.0x | | -2.5x |
Camtek Ltd. ($CAMT) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 27 | 30 | 32 | 33 | | -11.4% | 34.3% | 35.5% | 28.4% |
| Net Income | 4 | 4 | 5 | 6 | | 7.1% | | -56.4% | 101.8% |
Balance Sheet
|
|---|
| Cash | 47 | 41 | 48 | 55 | | 94.3% | 51.9% | 122.9% | 25.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | -100.0% | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 47.7% | 48.9% | 50.2% | 50.4% | | -0.5% | -0.3% | 0.8% | 2.7% |
| Net Income Margin | 13.0% | 14.2% | 15.8% | 17.4% | | 2.2% | 31.3% | -33.3% | 6.3% |
Peers in Semiconductor Equipment
Below we provide Camtek Ltd. benchmarking against other companies in Semiconductor Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Atomera Incorporated ($ATOM) | | | | | 123.6% |
| ACM Research, Inc. ($ACMR) | | | -12.3% | 33.4% | 104.5% |
| SCI Engineered Materials Inc ($SCIA) | | -13.0% | -32.1% | 24.4% | 67.0% |
| Aehr Test Systems ($AEHR) | | -49.1% | 44.7% | 30.3% | 56.4% |
| SolarEdge Technologies, Inc. ($SEDG) | | 144.0% | 50.7% | 23.9% | 54.4% |
| |
|---|
| Median (37 companies) | | -0.5% | 6.5% | 24.7% | 14.0% |
|---|
| Camtek Ltd. ($CAMT) | | -21.4% | 14.2% | 18.0% | 31.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | 99.5% | 99.8% | 99.8% | 98.3% | 96.7% |
| KLA-Tencor Corporation ($KLAC) | 57.9% | 56.8% | 61.0% | 63.0% | 64.1% |
| Teradyne, Inc. ($TER) | 53.3% | 55.8% | 54.7% | 57.2% | 58.1% |
| Nova Measuring Instruments Ltd. ($NVMI) | 52.7% | 51.9% | 45.9% | 59.1% | 57.8% |
| Nanometrics Incorporated ($NANO) | 47.2% | 47.9% | 51.6% | 52.9% | 56.7% |
| |
|---|
| Median (38 companies) | 34.4% | 38.3% | 37.3% | 43.2% | 40.2% |
|---|
| Camtek Ltd. ($CAMT) | 46.4% | 45.9% | 41.0% | 48.7% | 49.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 29.2% | 26.4% | 34.4% | 38.3% | 39.6% |
| DAQO New Energy Corp. ($DQ) | 32.9% | 31.6% | 43.3% | 49.1% | 36.1% |
| Xperi Corporation ($XPER) | 66.7% | 67.5% | 47.6% | 23.4% | 34.3% |
| Lam Research Corporation ($LRCX) | 21.1% | 20.3% | 23.2% | 27.6% | 32.0% |
| Cabot Microelectronics Corporation ($CCMP) | 21.6% | 22.6% | 23.4% | 27.2% | 31.5% |
| |
|---|
| Median (37 companies) | 6.8% | 10.3% | 12.1% | 16.2% | 16.2% |
|---|
| Camtek Ltd. ($CAMT) | 8.3% | -16.9% | 5.0% | -1.0% | 17.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Rubicon Technology, Inc. ($RBCN) | 15.0% | 4.0% | 3.6% | 0.0% | 58.8% |
| DAQO New Energy Corp. ($DQ) | 42.2% | 44.7% | 29.5% | 19.8% | 47.4% |
| AXT Inc ($AXTI) | 2.4% | 5.4% | 3.4% | 21.6% | 39.6% |
| STR Holdings Inc ($STRI) | 7.9% | 8.1% | 1.6% | 9.0% | 36.6% |
| Photronics, Inc. ($PLAB) | 20.0% | 19.8% | 10.4% | 20.4% | 17.3% |
| |
|---|
| Median (37 companies) | 2.3% | 2.7% | 2.6% | 2.8% | 3.0% |
|---|
| Camtek Ltd. ($CAMT) | 0.6% | 3.2% | 1.6% | 3.4% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| KLA-Tencor Corporation ($KLAC) | 17.9% | 16.5% | 27.2% | 34.0% | 39.9% |
| Lam Research Corporation ($LRCX) | 10.7% | 10.9% | 11.8% | 18.7% | 33.9% |
| Versum Materials, Inc. ($VSM) | | 26.2% | 32.4% | 30.0% | 32.1% |
| Advanced Energy Industries, Inc. ($AEIS) | 8.8% | 30.2% | 41.2% | 45.7% | 31.3% |
| SolarEdge Technologies, Inc. ($SEDG) | -815.6% | 33.6% | 31.2% | 26.5% | 28.6% |
| |
|---|
| Median (39 companies) | 3.4% | 6.0% | 7.6% | 13.1% | 11.2% |
|---|
| Camtek Ltd. ($CAMT) | 8.0% | -20.0% | 2.9% | -3.9% | 21.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Xperi Corporation ($XPER) | -0.3x | -0.1x | 4.2x | 5.0x | 2.6x |
| Ultra Clean Holdings, Inc. ($UCTT) | -1.2x | 1.5x | 0.4x | -0.2x | 2.4x |
| Ichor Holdings ($ICHR) | 3.1x | 1.7x | -0.4x | 2.0x | 1.8x |
| Versum Materials, Inc. ($VSM) | -0.2x | -0.1x | 2.7x | 2.1x | 1.4x |
| DAQO New Energy Corp. ($DQ) | 4.6x | 4.3x | 2.3x | 0.9x | 1.2x |
| |
|---|
| Median (31 companies) | -1.2x | -1.3x | -1.2x | -0.7x | -1.0x |
|---|
| Camtek Ltd. ($CAMT) | -2.5x | | -5.0x | | -2.5x |
