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Camtek Ltd (CAMT)
NASDAQ:CAMT
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Camtek
(NASDAQ:CAMT)
76Outperform
Positive Factors
Financial Performance
Camtek reported a beat-and-raise quarter and sees continued strength in HPC, which will still account for 50% of overall revenue.
Market Position
CAMT is a Top Pick for CY25 due to its role in advanced packaging, which is crucial for making chips smaller, faster, and cheaper.
Product Development
The new Hawk platform could nearly double throughput compared to the previous platform, indicating significant growth potential.
Negative Factors
Capital Expenditure
Potential for an air pocket if Samsung pulls back spending.
Market Sentiment
The market is likely reading the 50% HPC and higher OSAT mix as an implied guidance on relatively lukewarm HBM spending, which could cap upside to the multiple in the near term.
Revenue Mix
China revenue contribution this year is moving lower to 30-35%, a slight downtick from the prior commentary of ~35%.
Camtek (CAMT) vs. S&P 500 (SPY)
Market Cap
$2.62B
Dividend Yield2.32%
Average Volume (3M)522.92K
Price to Earnings (P/E)23.7
Beta (1Y)2.27
Revenue Growth36.10%
EPS Growth48.15%
CountryUS
Employees656
SectorTechnology
Sector Strength49
IndustrySemiconductors
Share Statistics
EPS (TTM)2.45
Shares Outstanding45,594,475
10 Day Avg. Volume611,411
30 Day Avg. Volume522,917
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)N/A
Price to Sales (P/S)33.96
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$105.71Price Target Upside76.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Camtek Business Overview & Revenue Model
Company DescriptionCamtek Ltd. is a leading provider of inspection and metrology solutions for the semiconductor industry. The company focuses on delivering advanced automated systems for the inspection of wafers, semiconductor devices, and other electronic components. Camtek operates primarily in the semiconductor sector, offering high-precision equipment that enhances the quality and efficiency of semiconductor manufacturing processes.
How the Company Makes MoneyCamtek makes money by selling its specialized inspection and metrology equipment to semiconductor manufacturers. The company's revenue model is centered around the development and sale of advanced inspection systems that help improve yield, reduce production costs, and ensure the quality of semiconductor products. Key revenue streams include the sale of these inspection systems, as well as after-sales services such as maintenance and support. Camtek also benefits from strategic partnerships and collaborations with major players in the semiconductor industry, which can lead to joint developments and expanded market reach. The company's earnings are influenced by the overall demand for semiconductor manufacturing equipment, technological advancements, and its ability to innovate and provide reliable, cutting-edge solutions.
Camtek Financial Statement Overview
Summary
Camtek demonstrates strong financial performance with robust revenue and profit growth, effective leverage management, and solid cash generation. The company's income statement highlights a CAGR of 24.8% over the past five years and a net profit margin increase to 27.6% in 2024. The balance sheet shows improved financial structure, and cash flow trends indicate effective capital investment management. However, attention to operational efficiency and reinvestment strategies is necessary.Income Statement
Camtek's income statement highlights robust revenue growth with a compounded annual growth rate of 24.8% over the past five years, indicating a strong market position in the semiconductor industry. Gross profit margin consistently above 48% and a notable increase in net profit margin from 16.4% in 2020 to 27.6% in 2024 demonstrate effective cost management and profitability enhancement. However, fluctuations in EBIT and EBITDA margins over the years suggest potential variability in operating efficiency.85
Very Positive
Balance Sheet
Camtek's balance sheet reflects a stable financial structure with a consistent increase in stockholders' equity, resulting in an improved equity ratio from 47.4% in 2020 to 61.6% in 2024. The debt-to-equity ratio remains low at 0.38, indicating prudent leverage management. The company has successfully maintained a positive net debt position, enhancing financial flexibility. However, the increase in total debt requires monitoring to ensure sustained financial health.80
Positive
Cash Flow
Camtek's cash flow statement shows a positive trend in operating cash flow, growing by more than threefold from 2019 to 2024. Free cash flow has increased significantly, supporting capital investments without reliance on external financing. The operating cash flow to net income ratio is healthy, reflecting efficient cash conversion. However, the volatility in investing cash flows warrants attention to ensure consistent reinvestment strategies.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 429.23M | 315.38M | 320.91M | 269.66M | 155.86M | Gross Profit |
| 209.95M | 147.63M | 159.86M | 137.34M | 73.23M | EBIT |
| 108.07M | 65.41M | 81.50M | 70.90M | 22.62M | EBITDA |
| 118.73M | 95.89M | 81.50M | 70.90M | 22.62M | Net Income Common Stockholders |
| 118.52M | 78.63M | 79.95M | 60.28M | 21.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 388.04M | 354.03M | 399.66M | 397.94M | 177.81M | Total Assets |
| 892.04M | 787.67M | 677.09M | 583.76M | 287.91M | Total Debt |
| 207.07M | 201.15M | 195.74M | 194.64M | 1.42M | Net Debt |
| 80.85M | 81.18M | 47.58M | -47.30M | -104.40M | Total Liabilities |
| 342.81M | 311.52M | 292.99M | 290.13M | 60.64M | Stockholders Equity |
| 549.24M | 476.15M | 384.10M | 293.63M | 227.26M |
| Cash Flow | Free Cash Flow | |||
| 112.14M | 71.05M | 49.51M | 56.78M | 23.13M | Operating Cash Flow |
| 122.24M | 79.32M | 57.80M | 60.96M | 25.75M | Investing Cash Flow |
| -55.91M | -107.45M | -150.79M | -120.18M | -23.13M | Financing Cash Flow |
| -60.05M | 182.00K | 3.00K | 194.80M | 64.92M |
Camtek Technical Analysis
Negative
59.90
Price Trends
71.49
Negative
77.23
Negative
84.88
Negative
Market Momentum
-4.40
Positive
33.25
Neutral
16.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAMT, the sentiment is Negative. The current price of 59.9 is below the 20-day moving average (MA) of 60.88, below the 50-day MA of 71.49, and below the 200-day MA of 84.88, indicating a bearish trend. The MACD of -4.40 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAMT.
Camtek Risk Analysis
Camtek disclosed 28 risk factors in its most recent earnings report. Camtek reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Camtek Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.13B | 7.65 | 13.70% | ― | -3.85% | 5.95% | |
76 Outperform | $2.62B | 23.70 | 23.12% | 2.32% | 36.10% | 48.15% | |
60 Neutral | $2.29B | 29.56 | 7.50% | ― | 15.16% | -15.16% | |
57 Neutral | $19.52B | 9.58 | -12.47% | 2.79% | 5.43% | -24.71% | |
54 Neutral | $2.86B | ― | -16.69% | ― | -25.29% | -449.44% | |
50 Neutral | $1.57B | 248.31 | 0.31% | 2.75% | -4.92% | -85.39% | |
50 Neutral | $2.34B | ― | -137.83% | ― | 4.66% | 84.78% |
* Technology Sector Average
Performance Comparison
CAMT
Camtek
59.90
-18.56
-23.66%
FORM
Formfactor
26.75
-17.34
-39.33%
KLIC
Kulicke & Soffa
29.87
-16.72
-35.89%
PLAB
Photronics
18.05
-9.24
-33.86%
SMTC
Semtech
26.60
-5.79
-17.88%
SLAB
Silicon Laboratories
89.82
-34.55
-27.78%
Camtek Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -31.46% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for Camtek, with record-breaking revenue and profit growth driven by the HPC segment and successful new product introductions. However, there are challenges, including a decline in China revenue contribution and hybrid bonding yield issues.Highlights
Record-Breaking Annual Revenue Growth
Camtek reported a revenue of $429 million for the year, marking a 36% increase year-over-year.
Significant Growth in Operating Income
Operating income for the year reached $130 million, a 56% improvement compared to the previous year.
Strong Performance in HPC Segment
The HPC segment contributed around 50% of the total revenue, with expectations to maintain this in the first half of 2025. Orders totaling over $10 million for HPC-related products were received recently.
Introduction of New Products
Successful introduction of Eagle G5 and Hawk models, both receiving positive customer feedback and significant orders.
Improved Gross Margin
Gross margin for Q4 increased to 50.6%, up from 49.2% in the same quarter last year.
Lowlights
Decline in China Revenue Contribution
China's revenue contribution decreased from 47% in 2023 to about 30% in 2024.
Challenges with Hybrid Bonding
Hybrid bonding, although promising, is facing significant yield challenges, limiting its immediate impact on growth.
Increased Inventory Levels
Inventory increased from $116.3 million to $123.1 million, which may indicate a need to manage future sales growth carefully.
Company Guidance
During the call, Camtek provided extensive guidance for its fiscal year 2025, projecting significant growth driven by its high-performance computing (HPC) segment. The company reported record fourth quarter 2024 revenues of $117.3 million, a 32% year-over-year increase, and operating income of $36.3 million, a 42% improvement from the previous year. For the entire year, Camtek achieved revenues of $429 million, marking a 36% increase year-over-year, and an operating income of $130 million, up 56% from the prior year. The company expects HPC to contribute at least 50% of its business in the first half of 2025, supported by recent orders exceeding $10 million for HPC-related products. Camtek anticipates first-quarter 2025 revenue to be between $118 million and $120 million, reflecting a 25% increase over the same quarter last year. The introduction of new products, the Eagle G5 and the Hawk, are expected to strengthen Camtek's position in advanced packaging, with the Hawk officially launching at the Semicon Korea Show. The company aims to capitalize on the growing demand for AI and edge computing devices, forecasting robust growth in the HPC sector as a primary growth engine for the upcoming years.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.