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Camtek Ltd (CAMT)
NASDAQ:CAMT
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Camtek
(NASDAQ:CAMT)
Rating:74Outperform
Price Target:
$93.00
▲(18.93% Upside)
Positive Factors
Earnings
CAMT reported a solid beat-and-raise quarter, indicating strong financial performance.
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.
Revenue Composition
Advanced Packaging came in worse at 65-70% of revenue, suggesting challenges in this segment.
Camtek (CAMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.75B
Dividend Yield1.73%
Average Volume (3M)367.75K
Price to Earnings (P/E)29.0
Beta (1Y)1.97
Revenue Growth27.88%
EPS Growth37.85%
CountryUS
Employees656
SectorTechnology
Sector Strength84
IndustrySemiconductors
Share Statistics
EPS (TTM)0.79
Shares Outstanding47,794,823
10 Day Avg. Volume298,311
30 Day Avg. Volume367,751
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue8.72
Enterprise Value/Gross Profit17.70
Enterprise Value/Ebitda33.22
Forecast
1Y Price Target
$99.40Price Target Upside27.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Camtek Business Overview & Revenue Model
Company DescriptionCamtek Ltd. (NASDAQ: CAMT) is a leading provider of automated solutions for the semiconductor industry, specializing in inspection and metrology equipment. The company operates primarily within the semiconductor and electronics manufacturing sectors, offering cutting-edge technologies that enhance production efficiency and yield. Camtek's core products include advanced inspection systems, metrology tools, and software solutions designed to ensure the highest quality in semiconductor manufacturing processes.
How the Company Makes MoneyCamtek generates revenue through the sale of its inspection and metrology equipment, as well as associated software and services. The company's primary revenue streams include direct sales of its hardware and software solutions to semiconductor manufacturers, as well as ongoing maintenance and support contracts. Additionally, Camtek benefits from strategic partnerships with key players in the semiconductor industry, which enhance its market reach and provide access to emerging technologies. The demand for high-precision inspection and metrology solutions, driven by the increasing complexity of semiconductor devices, contributes significantly to the company's earnings.
Camtek Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with record revenue growth and strong performance in high-performance computing and new product launches. These positives were slightly tempered by increased operating expenses and currency fluctuation challenges.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Q2 revenues reached $123.3 million, reflecting over 20% growth year-over-year. Gross margin maintained around 52%, contributing to a record operating income of over $37 million.
Strong Performance in High-Performance Computing
High-performance computing applications contributed approximately 45% to 50% of total revenue. Camtek expects Q3 2025 revenue to be approximately $125 million, representing an annualized run rate of $0.5 billion.
Successful Launch and Adoption of New Products
The Hawk and Eagle 5 systems, delivering breakthrough performance, are expected to generate approximately 30% of total revenue this year. The MicroProf metrology system has been successfully adopted by a Tier 1 customer with over 30 systems already installed.
Positive Financial Metrics
Net income for Q2 2025 was $38.8 million or $0.79 per diluted share. Cash, cash equivalents, and marketable securities were $544 million as of June 30, 2025.
Negative Updates
Increased Operating Expenses
Operating expenses in the quarter were $26.6 million compared to $21.6 million in the second quarter of last year, mainly due to high shipping expenses related to the conflict with Iran.
Challenges in Currency Fluctuations
Decrease in financial income from the previous quarter was mainly due to the weakness of the U.S. dollar affecting the reevaluation of certain balance sheet items.
Company Guidance
During the recent earnings call, Camtek provided guidance for the third quarter of 2025, projecting revenues to reach approximately $125 million, which aligns with an annualized run rate of $0.5 billion—a significant milestone for the company. This guidance reflects Camtek's strong market position, particularly in high-performance computing (HPC) applications, which contributed 45% to 50% of total revenue. The company also reported record Q2 2025 revenues of $123.3 million, a 20% year-over-year increase, with a gross margin of around 52%. Operating income reached over $37 million despite increased operating expenses, largely due to high shipping costs related to geopolitical tensions. Camtek anticipates continued growth driven by the adoption of advanced packaging technologies, with its new Hawk and Eagle 5 systems expected to account for 30% of total revenue this year. Additionally, the company is seeing strong momentum and a healthy order flow into the fourth quarter, supported by a robust sales pipeline and ongoing customer engagement.Camtek Financial Statement Overview
Summary
Camtek demonstrates strong financial performance with impressive revenue growth, effective cost management, and solid cash generation. However, fluctuations in operating efficiency and investing cash flows 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.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 450.86M | 429.23M | 315.38M | 320.91M | 269.66M | 155.86M |
| Gross Profit | 222.30M | 209.95M | 147.63M | 159.86M | 137.34M | 73.23M |
| EBITDA | 118.40M | 143.00M | 95.89M | 81.50M | 70.90M | 22.62M |
| Net Income | 128.03M | 118.52M | 78.63M | 79.95M | 60.28M | 21.78M |
Balance Sheet | ||||||
| Total Assets | 934.02M | 892.04M | 787.67M | 677.09M | 583.76M | 287.91M |
| Cash, Cash Equivalents and Short-Term Investments | 421.54M | 388.04M | 354.03M | 399.66M | 397.94M | 177.81M |
| Total Debt | 198.20M | 207.07M | 201.15M | 195.74M | 194.64M | 1.42M |
| Total Liabilities | 346.10M | 342.81M | 311.52M | 292.99M | 290.13M | 60.64M |
| Stockholders Equity | 587.92M | 549.24M | 476.15M | 384.10M | 293.63M | 227.26M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 112.14M | 71.05M | 49.51M | 56.78M | 23.13M |
| Operating Cash Flow | 0.00 | 122.24M | 79.32M | 57.80M | 60.96M | 25.75M |
| Investing Cash Flow | 0.00 | -55.91M | -107.45M | -150.79M | -120.18M | -23.13M |
| Financing Cash Flow | 0.00 | -60.05M | 182.00K | 3.00K | 194.80M | 64.92M |
Camtek Technical Analysis
Negative
78.20
Price Trends
87.69
Negative
77.81
Positive
77.62
Positive
Market Momentum
-2.15
Positive
38.35
Neutral
11.72
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 78.2 is below the 20-day moving average (MA) of 83.45, below the 50-day MA of 87.69, and above the 200-day MA of 77.62, indicating a neutral trend. The MACD of -2.15 indicates Positive momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 11.72 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.32B | 12.39 | 9.89% | ― | -1.79% | -22.58% | |
74 Outperform | $3.75B | 28.97 | 24.28% | 1.73% | 27.88% | 37.85% | |
65 Neutral | $5.01B | 245.36 | 11.57% | ― | 22.22% | ― | |
62 Neutral | $2.19B | 50.56 | 4.53% | ― | 8.30% | -63.69% | |
62 Neutral | $1.90B | 462.28 | 0.66% | 2.16% | -9.54% | ― | |
61 Neutral | $35.51B | 8.11 | -11.05% | 1.89% | 8.55% | -8.72% | |
54 Neutral | $4.43B | ― | -9.71% | ― | 29.66% | 47.97% |
* Technology Sector Average
Performance Comparison
CAMT
Camtek
78.20
-4.71
-5.68%
FORM
Formfactor
28.95
-14.97
-34.08%
KLIC
Kulicke & Soffa
37.78
-1.18
-3.03%
PLAB
Photronics
22.22
-0.66
-2.88%
SMTC
Semtech
59.90
17.73
42.04%
SLAB
Silicon Laboratories
134.92
26.03
23.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.