Camtek Ltd (NASDAQ: CAMT)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0001109138
Market Cap 6.52 Bn
P/B 11.27
P/E 136.21
P/S 13.43
ROIC (Qtr) 11.31
Div Yield % 0.00
Rev 1y % (Qtr) 12.15
Total Debt (Qtr) 519.11 Mn
Debt/Equity (Qtr) 0.90

About

Camtek Ltd., often recognized by its stock symbol CAMT, operates in the semiconductor industry, focusing on the development and manufacture of high-end inspection and metrology equipment. The company's primary business revolves around providing automated optical inspection and metrology solutions to the semiconductor manufacturing industry, serving clients across various stages of the manufacturing process. These stages include front-end macro inspection, mid-end inspection, and back-end inspection. Camtek's product portfolio consists of the Eagle-i,...

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Price action

Investment thesis

Bull case

  • Tangible assets of 1.15B provide robust 13.41x coverage of other current liabilities 85.46M, indicating strong asset backing.
  • Cash reserves of 582.12M provide robust 4.90x coverage of current liabilities 118.69M, indicating strong short-term solvency.
  • Strong cash position of 582.12M provides 6.81x coverage of other current liabilities 85.46M, indicating excellent liquidity.
  • Cash reserves of 582.12M provide solid 38.25x coverage of other non-current liabilities 15.22M, indicating strong liquidity.
  • Retained earnings of 350.65M provide strong 4.10x coverage of other current liabilities 85.46M, indicating earnings quality.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 45.66M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Long-term investments of 154.46M represent a high 2.48x of fixed assets 62.21M, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 2.13M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Cash position of 582.12M provides only -25.23x coverage of interest expenses of (23.08M), indicating potential refinancing risks in a rising rate environment.
  • Tangible assets of 1.15B provide limited backing for working capital of 781.13M, which is 1.47x, suggesting increased operational risk in market downturns.

Geographical Breakdown of Revenue (2023)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 545.55 Bn 81.60 25.80 3.18 Bn
2 LRCX Lam Research Corp 270.12 Bn 366.11 84.92 4.48 Bn
3 AMAT Applied Materials Inc /De 260.74 Bn 38.58 9.28 6.56 Bn
4 KLAC Kla Corp 207.40 Bn 64.64 19.12 5.89 Bn
5 TER Teradyne, Inc 47.70 Bn 421.67 28.58 0.27 Bn
6 ENTG Entegris Inc 15.99 Bn 199.19 14.79 3.91 Bn
7 NVMI Nova Ltd. 12.80 Bn 52.23 15.01 0.88 Bn
8 AMKR Amkor Technology, Inc. 11.99 Bn 21.67 2.07 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.30 3.68
EV to Cash from Ops. EV/CFO 65.73 27.99
EV to Debt EV to Debt 12.56 2,137.46
EV to EBIT EV/EBIT 242.56 47.14
EV to EBITDA EV/EBITDA 47.61 30.10
EV to Free Cash Flow [EV/FCF] EV/FCF 73.59 68.49
EV to Market Cap EV to Market Cap 1.00 0.93
EV to Revenue EV/Rev 13.44 55.25
Price to Book Value [P/B] P/B 11.27 11.74
Price to Earnings [P/E] P/E 136.21 58.42
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.93
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 667.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.62
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.52
Interest Coverage Int. cover (Qtr) -1.17 86.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -57.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 56.21 21.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -69.94 -69.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -68.67
EBIT Growth (1y) % EBIT 1y % (Qtr) -71.39 -68.41
EBT Growth (1y) % EBT 1y % (Qtr) -57.17 -76.59
EPS Growth (1y) % EPS 1y % (Qtr) -54.89 -164.09
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 70.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.53 43.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 4.90 1.52
Current Ratio Curr Ratio (Qtr) 7.58 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.90 0.30
Interest Cover Ratio Int Coverage (Qtr) -1.17 86.73
Times Interest Earned Times Interest Earned (Qtr) -1.17 86.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -1,802.55
EBIT Margin % EBIT Margin % (Qtr) 5.54 -1,926.38
EBT Margin % EBT Margin % (Qtr) 10.30 -1,932.94
Gross Margin % Gross Margin % (Qtr) 50.40 22.58
Net Profit Margin % Net Margin % (Qtr) 9.90 -2,101.05