Camtek Ltd. reports 16.3% revenue growth in 2020 and 2.0 pp EBITDA Margin decline from 18.0% to 15.9%
02/09/2021 • About Camtek Ltd. (
$CAMT) • By InTwits
Camtek Ltd. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Camtek Ltd. is a fast growth stock: 2020 revenue growth was 16.3%, 5 year revenue CAGR was 17.6% at 2020 ROIC 12.3%
- EBITDA Margin is quite volatile: 15.9% in 2020, 18.0% in 2019, 17.9% in 2018, -1.0% in 2017, 5.0% in 2016
- Camtek Ltd. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 5.5%
- CAPEX is quite volatile: $2m in 2020, $1m in 2019, $2m in 2018, $3m in 2017, $1m in 2016
- The company has highly profitable business model: ROIC is 12.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Camtek Ltd.'s Revenue surged on 16.3%. Revenue growth showed acceleration in 20Q4 - it increased 47.3% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.0 pp from 18.0% to 15.9% in 2020.
Gross Margin decreased slightly on 1.4 pp from 48.3% to 47.0% in 2020. During the last 5 years Gross Margin topped in 2018 at 49.4% and was declining since that time. SG&A as a % of Revenue showed almost no change in 2020. SG&A as a % of Revenue followed a declining trend at -1.9 pp per annum in 2016-2020.
Net Income margin decreased on 2.4 pp from 16.4% to 14.0% in 2020. During the last 5 years Net Income margin topped in 2019 at 16.4%.
Investments (CAPEX, working capital and M&A)
In 2020 Camtek Ltd. had CAPEX/Revenue of 1.5%. The company showed small CAPEX/Revenue decline of 1.8 pp from 3.4% in 2017 to 1.5% in 2020. It's average level of CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROIC (12.3%) while ROE is low (12.0%). ROIC decreased on 6.0 pp from 18.4% to 12.3% in 2020. ROE decreased on 6.5 pp from 18.5% to 12.0% in 2020. During the last 5 years ROE topped in 2018 at 20.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.2x and Debt / EBITDA is 0.1x. Debt dropped on 11.7% while cash jumped on 178%.
Camtek Ltd. has no short term refinancing risk: cash is higher than short term debt (14,377.0%).
Valuation and dividends
Camtek Ltd.'s trades at EV/EBITDA 46.5x and P/E 57.9x.
Financial and operational results
FY ended 12/31/2020
Camtek Ltd. ($CAMT) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 79.2 | 93.5 | 123.2 | 134.0 | 155.9 | 16.3% |
| Gross Profit | 32.5 | 45.5 | 60.8 | 64.8 | 73.2 | 13.0% |
| SG&A | 21.9 | 22.0 | 26.2 | 26.5 | 31.0 | 17.2% |
| EBITDA | 4.0 | -0.9 | 22.0 | 24.1 | 24.9 | 3.1% |
| EBIT | | | | 22.0 | | |
| Net Income | 4.7 | 14.0 | 18.7 | 22.0 | 21.8 | -0.9% |
| Stock Based Compensation | | | | 2.9 | | |
Balance Sheet
|
|---|
| Cash | 19.7 | 43.7 | 54.9 | 38.0 | 105.8 | 178.1% |
| Accounts Receivable | | | | 31.4 | | |
| Inventory | | | | 23.8 | | |
| Accounts Payable | | | | 11.3 | | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.8 | 0.7 | -10.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.8 | 0.7 | -12.5% |
Cash flow
|
|---|
| Capex | 1.3 | 3.1 | 2.2 | 1.3 | 2.4 | 91.9% |
| Dividends | | | | 7.0 | | |
Ratios
|
|---|
| Revenue growth | 14.2% | 18.0% | 31.8% | 8.8% | 16.3% | |
| EBITDA growth | -134.0% | -123.0% | -2,504.3% | 9.6% | 3.1% | |
|
|---|
| Gross Margin | 41.0% | 48.7% | 49.4% | 48.3% | 47.0% | -1.4% |
| EBITDA Margin | 5.0% | -1.0% | 17.9% | 18.0% | 15.9% | -2.0% |
| EBIT Margin | | | | 16.4% | |
| SG&A, % of revenue | 27.6% | 23.6% | 21.3% | 19.8% | 19.9% | 0.2% |
| SBC, % of revenue | | | | 2.2% | |
| Net Income Margin | 6.0% | 14.9% | 15.2% | 16.4% | 14.0% | -2.4% |
| CAPEX, % of revenue | 1.6% | 3.4% | 1.8% | 0.9% | 1.5% | 0.6% |
|
|---|
| ROIC | 2.9% | -3.9% | 21.6% | 18.4% | 12.3% | -6.0% |
| ROE | 6.7% | 17.7% | 20.2% | 18.5% | 12.0% | -6.5% |
| Net Debt/EBITDA | -5.0x | | -2.5x | -1.5x | -4.2x | -2.7x |
People
|
|---|
| Insider ownership | | | | 0.1% | | |
| Employees | | | | 332 | | |
| Revenue/Employee, th. $ | | | | 404 | | |
Camtek Ltd. ($CAMT) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 30 | 37 | 40 | 49 | | -11.2% | 8.8% | 25.2% | 47.3% |
| Net Income | 3 | 5 | 6 | 8 | | -53.7% | -24.2% | 50.6% | 53.3% |
Balance Sheet
|
|---|
| Cash | 49 | 32 | 26 | 106 | | -19.5% | -61.8% | -55.9% | 178.5% |
| Short Term Debt | 0 | 0 | 0 | 1 | | - | - | - | -26.4% |
| Long Term Debt | 0 | 0 | 0 | 1 | | - | - | - | -32.1% |
Ratios
|
|---|
| Gross Margin | 44.9% | 45.8% | 48.5% | 47.9% | | -5.1% | -2.2% | 1.5% | -0.1% |
| Net Income Margin | 9.2% | 14.3% | 15.0% | 15.8% | | -8.4% | -6.2% | 2.5% | 0.6% |
Peers in Semiconductor Equipment
Below you can find Camtek 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | - | 44.0% | 8.7% | -31.0% | 218.5% |
| DAQO New Energy Corp. ($DQ) | - | 41.1% | -6.7% | 16.0% | 93.0% |
| Advanced Energy Industries, Inc. ($AEIS) | - | 38.7% | 7.1% | 9.7% | 79.5% |
| Ichor Holdings ($ICHR) | - | 61.7% | 25.6% | -24.6% | 47.3% |
| ACM Research, Inc. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.7% | 14.0% | -2.8% | 16.9% |
|---|
| Camtek Ltd. ($CAMT) | - | 18.0% | 31.8% | 8.8% | 16.3% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 99.8% | 98.3% | 96.7% | 97.0% | 91.2% |
| PDF Solutions, Inc. ($PDFS) | 58.6% | 53.4% | 50.1% | 60.9% | 58.2% |
| Teradyne, Inc. ($TER) | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% |
| Nova Measuring Instruments Ltd. ($NVMI) | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% |
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| |
|---|
| Median (27 companies) | 37.3% | 43.2% | 40.2% | 40.3% | 42.4% |
|---|
| Camtek Ltd. ($CAMT) | 41.0% | 48.7% | 49.4% | 48.3% | 47.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Xperi Corporation ($XPER) | 47.6% | 23.4% | 34.3% | 16.4% | 40.8% |
| DAQO New Energy Corp. ($DQ) | 43.3% | 49.1% | 36.1% | 27.1% | 38.0% |
| Teradyne, Inc. ($TER) | 3.4% | 29.6% | 27.9% | 30.3% | 33.8% |
| Cabot Microelectronics Corporation ($CCMP) | 23.4% | 27.2% | 31.5% | 20.1% | 31.6% |
| Entegris, Inc. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.2% | 16.2% | 11.9% | 15.4% |
|---|
| Camtek Ltd. ($CAMT) | 5.0% | -1.0% | 17.9% | 18.0% | 15.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| DAQO New Energy Corp. ($DQ) | 29.5% | 19.8% | 47.4% | 79.7% | 17.5% |
| Photronics, Inc. ($PLAB) | 10.4% | 20.4% | 17.3% | 32.4% | 11.6% |
| Cabot Microelectronics Corporation ($CCMP) | 4.1% | 4.2% | 3.6% | 5.4% | 11.3% |
| Amkor Technology, Inc. ($AMKR) | 16.5% | 13.1% | 12.7% | 11.7% | 10.9% |
| ACM Research, Inc. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 2.8% | 3.0% | 3.4% | 3.9% |
|---|
| Camtek Ltd. ($CAMT) | 1.6% | 3.4% | 1.8% | 0.9% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Teradyne, Inc. ($TER) | -2.9% | 23.8% | 22.6% | 29.2% | 40.3% |
| DAQO New Energy Corp. ($DQ) | 12.7% | 23.2% | 12.2% | 5.6% | 18.5% |
| Entegris, Inc. ($ENTG) | 10.3% | 14.7% | 15.4% | 11.3% | 16.4% |
| Advanced Energy Industries, Inc. ($AEIS) | 41.2% | 45.7% | 31.3% | 6.9% | 15.5% |
| Ultra Clean Holdings, Inc. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.6% | 13.1% | 11.2% | 5.5% | 10.2% |
|---|
| Camtek Ltd. ($CAMT) | 2.9% | -3.9% | 21.6% | 18.4% | 12.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Veeco Instruments Inc. ($VECO) | - | - | - | 577.2x | 3.4x |
| Cohu, Inc. ($COHU) | -6.0x | -2.7x | - | 10.1x | 2.9x |
| Xperi Corporation ($XPER) | 4.2x | 5.0x | 2.6x | 6.1x | 2.1x |
| Cabot Microelectronics Corporation ($CCMP) | -1.3x | -1.8x | -1.9x | 3.6x | 2.0x |
| Entegris, Inc. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.2x | -0.7x | -1.0x | -0.4x | -0.3x |
|---|
| Camtek Ltd. ($CAMT) | -5.0x | - | -2.5x | -1.5x | -4.2x |
