Nova Measuring Instruments Ltd. EBITDA surged on 40.7% and EBITDA Margin increased on 3.9 pp from 22.1% to 25.9%
02/18/2021 • About Nova Measuring Instruments Ltd. (
$NVMI) • By InTwits
Nova Measuring Instruments Ltd. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- Nova Measuring Instruments Ltd. is a growth stock: 2020 revenue growth was 19.8%, 5 year revenue CAGR was 12.6% at 2020 ROIC 11.9%
- Nova Measuring Instruments Ltd. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: $6m in 2020, $21m in 2019, $4m in 2018, $6m in 2017, $3m in 2016
- The company has business model with average profitability: ROIC is 11.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Nova Measuring Instruments Ltd.'s Revenue surged on 19.8%. Revenue growth showed small slowdown in 20Q4 - it was 18.1% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.9 pp from -0.50% to 8.4% in 2020.
Gross Margin increased on 2.6 pp from 54.2% to 56.8% in 2020. SG&A as a % of Revenue decreased slightly on 1.9 pp from 17.4% to 15.5% in 2020.
Net Income margin increased on 2.1 pp from 15.6% to 17.8% in 2020.
Investments (CAPEX, working capital and M&A)
Nova Measuring Instruments Ltd.'s CAPEX/Revenue was 2.4% in 2020. Nova Measuring Instruments Ltd.'s CAPEX/Revenue showed almost no change from 2017 to 2020. For the last three years the average CAPEX/Revenue was 4.4%.
Return on investment
The company operates at good ROE (14.0%) while ROIC is low (11.9%). ROIC decreased slightly on 0.57 pp from 12.5% to 11.9% in 2020. ROE increased on 2.1 pp from 11.8% to 14.0% in 2020. During the last 5 years ROIC topped in 2017 at 29.1% and was declining since that time.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 3.1x Debt / EBITDA. Debt jumped on 544% while cash surged on 632%.
Nova Measuring Instruments Ltd. has no short term refinancing risk: cash is higher than short term debt (6,273.4%).
Valuation and dividends
The company's trades at EV/EBITDA 32.6x and P/E 47.9x.
Financial and operational results
FY ended 12/31/2020
Nova Measuring Instruments Ltd. ($NVMI) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 163.9 | 222.0 | 251.1 | 224.9 | 269.4 | 19.8% |
| Gross Profit | 75.3 | 131.2 | 145.2 | 121.8 | 152.9 | 25.5% |
| SG&A | 28.4 | 31.9 | 37.6 | 39.1 | 41.8 | 6.9% |
| EBITDA | 16.8 | 64.0 | 68.1 | 49.6 | 69.8 | 40.7% |
| Net Income | 9.6 | 46.5 | 54.4 | 35.2 | 47.9 | 36.2% |
Balance Sheet
|
|---|
| Cash | 20.4 | 27.7 | 22.9 | 31.7 | 232.3 | 631.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 2.2 | 3.7 | 65.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 31.1 | 210.7 | 578.0% |
Cash flow
|
|---|
| Capex | 3.1 | 6.3 | 3.7 | 21.3 | 6.4 | -69.7% |
Ratios
|
|---|
| Revenue growth | 10.4% | 35.4% | 13.1% | -10.4% | 19.8% | |
| EBITDA growth | -20.9% | 281.8% | 6.5% | -27.2% | 40.7% | |
|
|---|
| Gross Margin | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% | 2.6% |
| EBITDA Margin | 10.2% | 28.8% | 27.1% | 22.1% | 25.9% | 3.9% |
| SG&A, % of revenue | 17.3% | 14.3% | 15.0% | 17.4% | 15.5% | -1.9% |
| Net Income Margin | 5.9% | 20.9% | 21.7% | 15.6% | 17.8% | 2.1% |
| CAPEX, % of revenue | 1.9% | 2.8% | 1.5% | 9.5% | 2.4% | -7.1% |
|
|---|
| ROIC | 6.1% | 29.1% | 23.9% | 12.5% | 11.9% | -0.6% |
| ROE | 5.7% | 23.1% | 21.4% | 11.8% | 14.0% | 2.1% |
| Net Debt/EBITDA | -1.2x | -0.4x | -0.3x | 0.0x | -0.3x | -0.3x |
Nova Measuring Instruments Ltd. ($NVMI) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 61 | 63 | 69 | 76 | | 7.7% | 22.4% | 32.3% | 18.1% |
| EBITDA | 16 | 12 | 18 | 19 | | 37.4% | 29.4% | 74.2% | 24.9% |
| Net Income | 12 | 9 | 14 | 14 | | 50.6% | 34.1% | 62.3% | 10.3% |
Balance Sheet
|
|---|
| Cash | 36 | 26 | 33 | 232 | | -1.7% | -16.1% | 24.8% | 631.7% |
| Short Term Debt | 2 | 2 | 2 | 4 | | -37.6% | -38.3% | -34.0% | 65.6% |
| Long Term Debt | 30 | 31 | 32 | 211 | | 18.2% | 20.1% | 26.5% | 578.0% |
Ratios
|
|---|
| Gross Margin | 56.3% | 58.5% | 57.1% | 55.5% | | 0.5% | 3.5% | 4.7% | 1.9% |
| EBITDA Margin | 25.6% | 19.7% | 25.9% | 25.5% | | 5.5% | 1.1% | 6.2% | 1.4% |
| Net Income Margin | 19.1% | 13.9% | 20.0% | 17.9% | | 5.5% | 1.2% | 3.7% | -1.3% |
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 | 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. ($ACMR) | - | 33.4% | 104.5% | 44.1% | 45.7% |
| |
|---|
| Median (27 companies) | 5.0% | 24.2% | 15.5% | -0.2% | 16.3% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | - | 35.4% | 13.1% | -10.4% | 19.8% |
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. ($TER) | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% |
| Kulicke and Soffa Industries, Inc. ($KLIC) | 45.7% | 47.2% | 46.1% | 47.1% | 47.8% |
| Camtek Ltd. ($CAMT) | 41.0% | 48.7% | 49.4% | 48.3% | 47.0% |
| |
|---|
| Median (27 companies) | 37.3% | 43.2% | 40.2% | 40.3% | 42.4% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 45.9% | 59.1% | 57.8% | 54.2% | 56.8% |
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. ($ENTG) | 21.7% | 25.6% | 27.1% | 24.7% | 29.3% |
| |
|---|
| Median (25 companies) | 12.1% | 16.0% | 16.2% | 11.9% | 15.4% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 10.2% | 28.8% | 27.1% | 22.1% | 25.9% |
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. ($ACMR) | 2.9% | 1.8% | 2.5% | 0.9% | 9.5% |
| |
|---|
| Median (24 companies) | 2.6% | 3.2% | 3.0% | 3.2% | 3.9% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 1.9% | 2.8% | 1.5% | 9.5% | 2.4% |
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. ($UCTT) | 7.8% | 27.5% | 10.5% | 4.1% | 14.8% |
| |
|---|
| Median (27 companies) | 7.6% | 12.2% | 11.2% | 5.5% | 10.2% |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | 6.1% | 29.1% | 23.9% | 12.5% | 11.9% |
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. ($ENTG) | 0.7x | 0.1x | 1.1x | 1.6x | 1.0x |
| |
|---|
| Median (23 companies) | -1.3x | -0.7x | -1.0x | -0.4x | -0.4x |
|---|
| Nova Measuring Instruments Ltd. ($NVMI) | -1.2x | -0.4x | -0.3x | 0.0x | -0.3x |
