Camtek Ltd. Net Income surged on 17.4% and Revenue increased on 8.8%
02/20/2020 • About Camtek Ltd. (
$CAMT) • By InTwits
Camtek Ltd. reported 2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 18.0% in 2019, 17.9% in 2018, -1.0% in 2017, 5.0% in 2016, -16.9% in 2015
- Camtek Ltd. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 7.8%
- CAPEX is quite volatile: $1m in 2019, $2m in 2018, $3m in 2017, $1m in 2016, $2m in 2015
- The company has highly profitable business model: ROIC is 18.4%
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 increased on 8.8%. Revenue growth showed slowdown in 19Q4 - it was -0.5% YoY. During the last 5 years Revenue growth topped in 2018 at 31.8%. EBITDA Margin showed almost no change in 2019. EBITDA Margin stuck to a growing trend at 8.3 pp per annum in 2015-2019.
Gross Margin decreased slightly on 1.0 pp from 49.4% to 48.3% in 2019. SG&A as a % of Revenue decreased slightly on 1.5 pp from 21.3% to 19.8% in 2019. SG&A as a % of Revenue declined at -2.2 pp per annum in 2015-2019.
Net Income margin increased slightly on 1.2 pp from 15.2% to 16.4% in 2019. Net Income margin pursued a growing trend in 2015-2019.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.94% in 2019. Camtek Ltd.'s CAPEX/Revenue decreased slightly on 0.69 pp from 1.6% in 2016 to 0.94% in 2019. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at good ROIC (18.4%) and ROE (18.5%). ROIC decreased on 3.2 pp from 21.6% to 18.4% in 2019. ROE decreased slightly on 1.7 pp from 20.2% to 18.5% in 2019. ROIC stuck to a growing trend at 9.6 pp per annum in the last 5 years. During the last 5 years ROE topped in 2018 at 20.2%.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and 0.1x Debt / EBITDA. Debt jumped while cash dropped on 30.7%.
Camtek Ltd. has no short term refinancing risk: cash is higher than short term debt (4,606.2%).
Valuation and dividends
Camtek Ltd.'s trades at EV/EBITDA 15.0x and P/E 18.1x.
The company paid 31.8% of Net Income as dividends in 2019.
Management team
0.13% of the company is owned by insiders.
The company has 332 employees. Average revenue per employee in 2019 was
$403,672.
Financial and operational results
FY ended 12/31/2019
Camtek Ltd. ($CAMT) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 69.4 | 79.2 | 93.5 | 123.2 | 134.0 | 8.8% |
| Gross Profit | 31.8 | 32.5 | 45.5 | 60.8 | 64.8 | 6.6% |
| SG&A | 19.3 | 21.9 | 22.0 | 26.2 | 26.5 | 1.1% |
| EBITDA | -11.7 | 4.0 | -0.9 | 22.0 | 24.1 | 9.6% |
| EBIT | | | | | 22.0 | |
| Net Income | -10.1 | 4.7 | 14.0 | 18.7 | 22.0 | 17.4% |
| Stock Based Compensation | | | | | 2.9 | |
Balance Sheet
|
|---|
| Cash | 30.8 | 19.7 | 43.7 | 54.9 | 38.0 | -30.7% |
| Accounts Receivable | | | | | 31.4 | |
| Inventory | | | | | 23.8 | |
| Accounts Payable | | | | | 11.3 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.8 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.8 | |
Cash flow
|
|---|
| Capex | 2.2 | 1.3 | 3.1 | 2.2 | 1.3 | -44.0% |
| Dividends | | | | | 7.0 | |
Ratios
|
|---|
| Revenue growth | -21.4% | 14.2% | 18.0% | 31.8% | 8.8% | |
| EBITDA growth | -258.7% | -134.0% | -123.0% | -2,504.3% | 9.6% | |
|
|---|
| Gross Margin | 45.9% | 41.0% | 48.7% | 49.4% | 48.3% | -1.0% |
| EBITDA Margin | -16.9% | 5.0% | -1.0% | 17.9% | 18.0% | 0.1% |
| EBIT Margin | | | | | 16.4% |
| SG&A, % of revenue | 27.8% | 27.6% | 23.6% | 21.3% | 19.8% | -1.5% |
| SBC, % of revenue | | | | | 2.2% |
| Net Income Margin | -14.6% | 6.0% | 14.9% | 15.2% | 16.4% | 1.2% |
| CAPEX, % of revenue | 3.2% | 1.6% | 3.4% | 1.8% | 0.9% | -0.9% |
|
|---|
| ROIC | -20.0% | 2.9% | -3.9% | 21.6% | 18.4% | -3.2% |
| ROE | -15.1% | 6.7% | 17.7% | 20.2% | 18.5% | -1.7% |
| Net Debt/EBITDA | | -5.0x | | -2.5x | -1.5x | 1.0x |
People
|
|---|
| Insider ownership | | | | | 0.1% | |
| Employees | | | | | 332 | |
| Revenue/Employee, th. $ | | | | | 404 | |
Camtek Ltd. ($CAMT) key quoterly financial indicators
| mln. $ | 19Q1 | 19Q2 | 19Q3 | 19Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 34 | 34 | 32 | 33 | | 24.7% | 11.6% | -0.8% | -0.5% |
| Net Income | 6 | 7 | 4 | 5 | | 69.8% | 61.6% | -21.5% | -13.4% |
Balance Sheet
|
|---|
| Cash | 61 | 85 | 59 | 38 | | 29.3% | 106.3% | 22.1% | -30.8% |
| Short Term Debt | 0 | 0 | 0 | 1 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 1 | | | | | |
Ratios
|
|---|
| Gross Margin | 50.0% | 48.0% | 47.0% | 48.0% | | 2.3% | -0.9% | -3.2% | -2.4% |
| Net Income Margin | 17.6% | 20.6% | 12.5% | 15.2% | | 4.7% | 6.4% | -3.3% | -2.3% |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| 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. ($SEDG) | 144.0% | 50.7% | 23.9% | 54.4% | |
| |
|---|
| Median (37 companies) | -0.5% | 6.9% | 24.7% | 14.0% | 4.3% |
|---|
| Camtek Ltd. ($CAMT) | | 14.2% | 18.0% | 31.8% | 8.8% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 99.8% | 98.3% | 96.7% | |
| KLA-Tencor Corporation ($KLAC) | 56.8% | 61.0% | 63.0% | 64.1% | |
| Teradyne, Inc. ($TER) | 55.8% | 54.7% | 57.2% | 58.1% | |
| Nova Measuring Instruments Ltd. ($NVMI) | 51.9% | 45.9% | 59.1% | 57.8% | |
| Nanometrics Incorporated ($NANO) | 47.9% | 51.6% | 52.9% | 56.7% | |
| |
|---|
| Median (38 companies) | 38.6% | 37.3% | 43.2% | 40.2% | 22.9% |
|---|
| Camtek Ltd. ($CAMT) | 45.9% | 41.0% | 48.7% | 49.4% | 48.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| KLA-Tencor Corporation ($KLAC) | 26.4% | 34.4% | 38.3% | 39.6% | |
| DAQO New Energy Corp. ($DQ) | 31.6% | 43.3% | 49.1% | 36.1% | 27.1% |
| Xperi Corporation ($XPER) | 67.5% | 47.6% | 23.4% | 34.3% | |
| Lam Research Corporation ($LRCX) | 20.3% | 23.2% | 27.6% | 32.0% | |
| Cabot Microelectronics Corporation ($CCMP) | 22.6% | 23.4% | 27.2% | 31.5% | |
| |
|---|
| Median (37 companies) | 10.5% | 12.1% | 16.2% | 16.2% | 17.7% |
|---|
| Camtek Ltd. ($CAMT) | -16.9% | 5.0% | -1.0% | 17.9% | 18.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Rubicon Technology, Inc. ($RBCN) | 4.0% | 3.6% | 0.0% | 58.8% | |
| DAQO New Energy Corp. ($DQ) | 44.7% | 29.5% | 19.8% | 47.4% | 79.7% |
| AXT Inc ($AXTI) | 5.4% | 3.4% | 21.6% | 39.6% | |
| STR Holdings Inc ($STRI) | 8.1% | 1.6% | 9.0% | 36.6% | |
| Photronics, Inc. ($PLAB) | 19.8% | 10.4% | 20.4% | 17.3% | |
| |
|---|
| Median (37 companies) | 2.4% | 2.6% | 2.8% | 3.0% | 43.5% |
|---|
| Camtek Ltd. ($CAMT) | 3.2% | 1.6% | 3.4% | 1.8% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| KLA-Tencor Corporation ($KLAC) | 16.5% | 27.2% | 34.0% | 39.9% | |
| Lam Research Corporation ($LRCX) | 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) | 30.2% | 41.2% | 45.7% | 31.3% | |
| SolarEdge Technologies, Inc. ($SEDG) | 33.6% | 31.2% | 26.5% | 28.6% | |
| |
|---|
| Median (39 companies) | 6.6% | 7.6% | 13.1% | 11.2% | 4.2% |
|---|
| Camtek Ltd. ($CAMT) | -20.0% | 2.9% | -3.9% | 21.6% | 18.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Xperi Corporation ($XPER) | -0.1x | 4.2x | 5.0x | 2.6x | |
| Ultra Clean Holdings, Inc. ($UCTT) | 1.5x | 0.4x | -0.2x | 2.4x | |
| Ichor Holdings ($ICHR) | 1.7x | -0.4x | 2.0x | 1.8x | |
| Versum Materials, Inc. ($VSM) | -0.1x | 2.7x | 2.1x | 1.4x | |
| DAQO New Energy Corp. ($DQ) | 4.3x | 2.3x | 0.9x | 1.2x | 3.5x |
| |
|---|
| Median (31 companies) | -1.3x | -1.2x | -0.7x | -1.0x | 1.6x |
|---|
| Camtek Ltd. ($CAMT) | | -5.0x | | -2.5x | -1.5x |
