Nova Ltd.
Nova Ltd. Fundamental Analysis
Nova Ltd. (NVMI) shows strong financial fundamentals with a PE ratio of 62.00, profit margin of 29.21%, and ROE of 21.21%. The company generates $0.9B in annual revenue with strong year-over-year growth of 30.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NVMI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNVMI demonstrates superior asset utilization.
Valuation Score
WeakNVMI trades at a premium to fair value.
Growth Score
ExcellentNVMI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNVMI maintains a strong and stable balance sheet.
Profitability Score
ExcellentNVMI achieves industry-leading margins.
Key Financial Metrics
Is NVMI Expensive or Cheap?
P/E Ratio
NVMI trades at 62.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NVMI's PEG of 3.23 indicates potential overvaluation.
Price to Book
The market values Nova Ltd. at 11.78 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 54.32 times EBITDA. This signals the market has high growth expectations.
How Well Does NVMI Make Money?
Net Profit Margin
For every $100 in sales, Nova Ltd. keeps $29.21 as profit after all expenses.
Operating Margin
Core operations generate 28.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.21 in profit for every $100 of shareholder equity.
ROA
Nova Ltd. generates $10.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nova Ltd. produces operating cash flow of $217.09M, showing steady but balanced cash generation.
Free Cash Flow
Nova Ltd. generates strong free cash flow of $194.21M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.11 in free cash annually.
FCF Yield
NVMI converts 1.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.002
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How NVMI Stacks Against Its Sector Peers
| Metric | NVMI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.00 | 36.81 | Worse (Expensive) |
| ROE | 21.21% | 974.00% | Weak |
| Net Margin | 29.21% | 5908812370.00% | Weak |
| Debt/Equity | 0.58 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.58 | 4.93 | Neutral |
| ROA | 10.91% | -294678.00% (disorted) | Strong |
NVMI outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nova Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
205.04%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
404.95%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
280.41%
Industry Style: Growth, Innovation, High Beta
High Growth