Nova Measuring Instruments Ltd. Net Income surged on 17.0% and Revenue jumped on 13.1%
02/13/2019 • About Nova Measuring Instruments Ltd. (
$NVMI) • By InTwits
Nova Measuring Instruments Ltd. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nova Measuring Instruments Ltd. is a fast growth stock: 2018 revenue growth was 13.1%, 5 year revenue CAGR was 17.6% at 2018 ROIC 23.9%
- EBITDA Margin is quite volatile: 27.1% in 2018, 28.8% in 2017, 10.2% in 2016, 14.3% in 2015, 17.3% in 2014
- Nova Measuring Instruments Ltd. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: $8m in 2018, $10m in 2017, $3m in 2016, $3m in 2015, $2m in 2014
- The company has highly profitable business model: ROIC is 23.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 13.1%. Revenue growth showed slowdown in 18Q4 - it was 9.9% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.5 pp from 8.0% to -5.6% in 2018.
Gross Margin decreased slightly on 1.3 pp from 59.1% to 57.8% in 2018. SG&A as a % of Revenue increased slightly on 0.62 pp from 14.3% to 15.0% in 2018.
Net Income margin increased slightly on 0.72 pp from 20.9% to 21.7% in 2018. During 2014-2018 Net Income margin bottomed in 2016 at 5.9% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In 2018 Nova Measuring Instruments Ltd. had CAPEX/Revenue of 1.5%. Nova Measuring Instruments Ltd. showed small CAPEX/Revenue decline of 1.5 pp from 2.9% in 2015 to 1.5% in 2018. It's average level of CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at high and attractive ROIC (23.9%) and ROE (21.4%). ROIC decreased on 5.2 pp from 29.1% to 23.9% in 2018. ROE decreased slightly on 1.7 pp from 23.1% to 21.4% in 2018.
Leverage (Debt)
The company has no debt. Cash dropped on 17.4%.
Valuation and dividends
The company's trades at EV/EBITDA 9.7x and P/E 12.5x.
Financial and operational results
FY ended 12/31/2018
Nova Measuring Instruments Ltd. ($NVMI) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 120.6 | 148.5 | 163.9 | 222.0 | 251.1 | 13.1% |
| Gross Profit | 63.6 | 77.1 | 75.3 | 131.2 | 145.2 | 10.7% |
| SG&A | 17.2 | 24.5 | 28.4 | 31.9 | 37.6 | 18.0% |
| EBITDA | 20.9 | 21.2 | 16.8 | 64.0 | 68.1 | 6.5% |
| Net Income | 18.7 | 15.7 | 9.6 | 46.5 | 54.4 | 17.0% |
Balance Sheet
|
|---|
| Cash | 13.6 | 27.7 | 20.4 | 27.7 | 22.9 | -17.4% |
| 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 | 5.2 | 4.4 | 3.1 | 6.3 | 3.7 | -41.6% |
Ratios
|
|---|
| Revenue growth | 8.2% | 23.1% | 10.4% | 35.4% | 13.1% | |
| EBITDA growth | 31.6% | 1.6% | -20.9% | 281.8% | 6.5% | |
|
|---|
| Gross Margin | 52.7% | 51.9% | 45.9% | 59.1% | 57.8% | -1.3% |
| EBITDA Margin | 17.3% | 14.3% | 10.2% | 28.8% | 27.1% | -1.7% |
| SG&A, % of revenue | 14.3% | 16.5% | 17.3% | 14.3% | 15.0% | 0.6% |
| Net Income Margin | 15.5% | 10.6% | 5.9% | 20.9% | 21.7% | 0.7% |
| CAPEX, % of revenue | 4.3% | 2.9% | 1.9% | 2.8% | 1.5% | -1.4% |
|
|---|
| ROIC | 12.4% | 7.6% | 6.1% | 29.1% | 23.9% | -5.2% |
| ROE | 13.7% | 10.3% | 5.7% | 23.1% | 21.4% | -1.7% |
| Net Debt/EBITDA | -0.7x | -1.3x | -1.2x | -0.4x | -0.3x | 0.1x |
Nova Measuring Instruments Ltd. ($NVMI) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 63 | 62 | 64 | 63 | | 15.0% | 10.3% | 17.6% | 9.9% |
| EBITDA | 18 | 16 | 18 | 17 | | 4.7% | -9.7% | 9.7% | 25.0% |
| Net Income | 14 | 12 | 13 | 15 | | 5.1% | -11.1% | 15.7% | 83.9% |
Balance Sheet
|
|---|
| Cash | 28 | 28 | 24 | 23 | | 16.6% | -33.8% | 18.7% | -17.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 58.1% | 57.7% | 58.9% | 56.6% | | -2.3% | -1.8% | -1.9% | 0.8% |
| EBITDA Margin | 28.1% | 25.2% | 27.9% | 27.3% | | -2.8% | -5.6% | -2.0% | 3.3% |
| Net Income Margin | 22.5% | 19.1% | 20.9% | 24.0% | | -2.1% | -4.6% | -0.3% | 9.7% |
Peers in Semiconductor Equipment
Below you can find Nova Measuring Instruments Ltd. benchmarking vs. other companies in Semiconductor Equipment industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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. ($SEDG) | | 144.0% | 50.7% | 23.9% | 54.4% |
| |
|---|
| Median (37 companies) | | -2.0% | 6.5% | 24.2% | 15.5% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | | 23.1% | 10.4% | 35.4% | 13.1% |
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. ($TER) | 53.3% | 55.8% | 54.7% | 57.2% | 58.1% |
| Nanometrics Incorporated ($NANO) | 47.2% | 47.9% | 51.6% | 52.9% | 56.7% |
| Rudolph Technologies, Inc. ($RTEC) | 52.7% | 53.9% | 53.1% | 52.8% | 54.2% |
| |
|---|
| Median (38 companies) | 34.4% | 38.3% | 37.3% | 43.2% | 40.2% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 52.7% | 51.9% | 45.9% | 59.1% | 57.8% |
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 ($CCMP) | 21.6% | 22.6% | 23.4% | 27.2% | 31.5% |
| |
|---|
| Median (37 companies) | 6.8% | 9.8% | 12.1% | 16.0% | 16.2% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 17.3% | 14.3% | 10.2% | 28.8% | 27.1% |
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. ($PLAB) | 20.0% | 19.8% | 10.4% | 20.4% | 17.3% |
| |
|---|
| Median (37 companies) | 2.2% | 2.7% | 2.6% | 3.2% | 3.0% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 4.3% | 2.9% | 1.9% | 2.8% | 1.5% |
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. ($SEDG) | -815.6% | 33.6% | 31.2% | 26.5% | 28.6% |
| |
|---|
| Median (39 companies) | 3.4% | 5.2% | 7.6% | 12.2% | 11.2% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 12.4% | 7.6% | 6.1% | 29.1% | 23.9% |
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. ($DQ) | 4.6x | 4.3x | 2.3x | 0.9x | 1.2x |
| |
|---|
| Median (31 companies) | -1.2x | -1.0x | -1.3x | -0.7x | -1.0x |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | -0.7x | -1.3x | -1.2x | -0.4x | -0.3x |
