Camtek (CAMT) AI Stock Analysis

• Market Cap: $4.22B
• Dividend Yield: 1.44%
• Average Volume (3M): 406.78K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 2.05
• Revenue Growth: 32.63%
• EPS Growth: 46.16%
• Country: US
• Employees: 656
• Sector: Technology
• Sector Strength: 93
• Industry: Semiconductors
• EPS (TTM): 0.79
• Shares Outstanding: 45,603,207
• 10 Day Avg. Volume: 317,892
• 30 Day Avg. Volume: 406,778
• PEG Ratio: 3.99
• Price to Book (P/B): 6.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 19.27
• Enterprise Value/Ebitda: 9.63
• 1Y Price Target: $89.00
• Price Target Upside: -5.61% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 75 Outperform
• Price Target: $102.00 ▲(8.18%Upside)

Camtek's strong financial performance and positive earnings call outlook are the primary drivers of the stock score. Despite technical indicators suggesting potential overbought conditions, the company's robust growth, new product introductions, and strategic positioning in the semiconductor industry support a favorable overall assessment. However, high valuation and geopolitical risks may temper short-term enthusiasm.

Positive Factors

Earnings

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 well positioned to gain some share over time as CoWoS – L increases CAMT’s addressable content.

Product Development

New product releases, including Eagle Gen5 and the Hawk platform, are important factors helping to sustain growth.

Negative Factors

Market Concerns

Investor concerns of an eventual correction in HBM/CoWoS will persist.

Market Risks

Potential for an air pocket if Samsung pulls back spending.

Revenue Mix

Advanced Packaging came in worse at 65-70% of revenue.

Camtek Business Overview & Revenue Model

Company Description

Camtek Ltd., together with its subsidiaries, develops, manufactures, and sells inspection and metrology equipment for the advanced interconnect packaging, memory, complementary metal oxide semiconductor image sensors, micro-electro mechanical systems, radio frequency, and other segments of the semiconductor industry. It provides inspection and metrology systems, including Eagle-i, a system that delivers 2D inspection and metrology capabilities; Eagle-AP, which addresses the advanced packaging market using software and hardware technologies that deliver superior 2D and 3D inspection and metrology capabilities on the same platform; and Golden Eagle, a panel inspection and metrology system to support fanout wafer level packaging applications. The company sells its products in the Asia Pacific, the United States, and Europe. Camtek Ltd. was incorporated in 1987 and is headquartered in Migdal HaEmek, Israel.

How the Company Makes Money

Camtek generates revenue primarily through the sale of its inspection and metrology systems to semiconductor manufacturers. These systems are essential for ensuring the quality and precision of semiconductor devices. The company's revenue streams include direct sales of equipment, alongside ongoing service and maintenance contracts which provide a steady stream of recurring income. Camtek's financial performance is bolstered by its focus on innovation and technology advancement, which helps maintain competitiveness in the rapidly evolving semiconductor industry. Additionally, strategic partnerships and collaborations with key players in the semiconductor sector contribute to its market presence and earnings.

Camtek Financial Statement Overview

Summary

Camtek demonstrates strong financial performance with impressive revenue growth and profitability. The company's effective leverage management and solid cash flow generation position it well within the semiconductor industry. However, operational efficiency and strategic reinvestment require attention.

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.

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.

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.

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
EBITDA	143.00M	95.89M	81.50M	70.90M	22.62M
Net Income	118.52M	78.63M	79.95M	60.28M	21.78M
Balance Sheet
Total Assets	892.04M	787.67M	677.09M	583.76M	287.91M
Cash, Cash Equivalents and Short-Term Investments	388.04M	354.03M	399.66M	397.94M	177.81M
Total Debt	207.07M	201.15M	195.74M	194.64M	1.42M
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

• Technical Analysis Sentiment: Positive
• Last Price: 94.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAMT, the sentiment is Positive. The current price of 94.29 is above the 20-day moving average (MA) of 87.25, above the 50-day MA of 76.70, and above the 200-day MA of 76.48, indicating a bullish trend. The MACD of 4.75 indicates Negative momentum. The RSI at 75.25 is Negative, neither overbought nor oversold. The STOCH value of 83.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAMT.

Camtek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMT	75 Outperform	$4.22B	35.00	24.82%	1.44%	32.63%	46.16%
FORM	74 Outperform	$2.72B	51.48	5.74%	―	15.33%	-47.04%
PLAB	68 Neutral	$1.16B	10.14	11.23%	―	-3.19%	-11.06%
SLAB	64 Neutral	$4.87B	―	-14.77%	―	2.16%	-55.38%
KLIC	63 Neutral	$1.87B	97.98	2.29%	2.85%	-6.17%	―
SMTC	60 Neutral	$4.65B	―	-93.41%	―	13.83%	88.14%
Sector *	51 Neutral	AU$1.60B	2.83	-31.50%	3.83%	16.21%	-7.40%