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Camtek (CAMT)
:CAMT
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Camtek
(NASDAQ:CAMT)
Rating:79Outperform
Price Target:―
Positive Factors
Earnings Performance
Camtek reported a beat-and-raise quarter and sees continued strength in HPC, which will still account for 50% of overall revenue.
Market Share
Camtek is not losing market share at any of its major customers, indicating limited competition impact.
Product Innovation
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.
Spending Risks
Potential for an air pocket if Samsung pulls back spending.
Camtek (CAMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.98B
Dividend Yield2.04%
Average Volume (3M)419.17K
Price to Earnings (P/E)24.7
Beta (1Y)2.11
Revenue Growth32.63%
EPS Growth46.16%
CountryUS
Employees656
SectorTechnology
Sector Strength76
IndustrySemiconductors
Share Statistics
EPS (TTM)0.79
Shares Outstanding45,594,475
10 Day Avg. Volume513,318
30 Day Avg. Volume419,166
Financial Highlights & Ratios
PEG Ratio2.84
Price to Book (P/B)5.51
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit15.09
Enterprise Value/Ebitda7.54
Forecast
1Y Price Target
$87.00Price Target Upside34.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Camtek Business Overview & Revenue Model
Company DescriptionCamtek 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 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's financial performance is robust, driven by strong revenue growth, effective cost management, and solid cash generation. While margins show variability, the overall financial structure is stable with effective leverage management.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 |
| 143.00M | 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
64.71
Price Trends
63.45
Positive
74.29
Negative
77.87
Negative
Market Momentum
0.61
Positive
47.46
Neutral
14.74
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 64.71 is below the 20-day moving average (MA) of 66.99, above the 50-day MA of 63.45, and below the 200-day MA of 77.87, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.98B | 24.70 | 24.82% | 2.04% | 32.63% | 46.16% | |
77 Outperform | $1.30B | 8.66 | 13.70% | ― | -3.85% | 5.95% | |
66 Neutral | $2.47B | 46.12 | 5.74% | ― | 15.33% | -47.04% | |
66 Neutral | $4.16B | ― | -14.77% | ― | 2.16% | -55.38% | |
64 Neutral | $1.75B | 91.51 | 2.29% | 2.45% | -6.17% | ― | |
60 Neutral | $11.56B | 10.24 | -7.04% | 2.94% | 7.46% | -10.54% | |
49 Neutral | $3.48B | ― | -137.83% | ― | 4.66% | 84.78% |
* Technology Sector Average
Performance Comparison
CAMT
Camtek
64.71
-38.17
-37.10%
FORM
Formfactor
31.44
-28.15
-47.24%
KLIC
Kulicke & Soffa
32.54
-14.00
-30.08%
PLAB
Photronics
20.01
-6.31
-23.97%
SMTC
Semtech
38.51
-1.37
-3.44%
SLAB
Silicon Laboratories
124.86
-2.72
-2.13%
Camtek Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -6.49%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Camtek reported strong revenue growth and improved margins, introduced new products, and received notable industry recognition. However, there are concerns regarding geopolitical uncertainties and increased operating expenses. The overall sentiment is balanced with significant positives in performance and outlook offset by some challenges.Q1-2025 Updates
Positive Updates
Record Revenue and Growth
Q1 revenues reached $119 million, reflecting a year-over-year increase of more than 20%. Operating income rose by nearly 30% compared to the same period last year.
Improved Gross Margin
Gross margin improved to over 52%, contributing to record operating income.
Strong Revenue Guidance
Camtek is guiding Q2 2025 revenue in the range of $120 million to $123 million, representing approximately 18% year-over-year growth.
Customer and Product Expansion
Sold systems to over 35 different customers in the quarter. New products, the Eagle G5 and the Hawk, are expected to contribute significantly to revenue this year.
Intel EPIC Supplier Award
Camtek received the Intel EPIC Supplier Award, highlighting their strong performance and partnership with Intel.
Negative Updates
Geopolitical Concerns
The geopolitical situation and tariff policy have created uncertainties in the market environment.
Exchange Rate Impact on Financial Income
Financial income for the quarter was $5.4 million, a decrease from the $5.6 million reported last year, due to exchange rate differences.
Increased Operating Expenses
Operating expenses increased to $24.4 million from $20.2 million in the first quarter of last year.
Company Guidance
During the call, Camtek provided guidance for the second quarter of 2025, projecting revenue in the range of $120 million to $123 million, representing approximately an 18% year-over-year growth compared to the second quarter of 2024. The company reported a strong first quarter with record revenues of $119 million, marking a year-over-year increase of more than 20%. The gross margin improved to over 52%, contributing to a record operating income of over $37 million, nearly a 30% increase from the previous year. The revenue distribution was 45% to 50% from high-performance computing (HPC) applications, around 20% from other advanced packaging applications, with the remainder from CMOS Image Sensor, compound semiconductor, front-end applications, and general 2D applications. Looking ahead, Camtek anticipates a healthy backlog for the third quarter, driven by ongoing investments in the HPC segment and the introduction of new technologies like HBM4. The company also highlighted the successful launch of two new models, the Eagle G5 and the Hawk, which are expected to significantly contribute to this year's revenue.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.