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Camtek (CAMT)
:CAMT
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Camtek
(NASDAQ:CAMT)
Rating:75Outperform
Price Target:
$95.00
▲(7.80% Upside)
Positive Factors
Earnings Performance
CAMT reported a solid beat-and-raise quarter, showing strong financial performance.
Market Position
Camtek is not losing market share at any of its major customers, indicating limited competition impact.
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 Perception
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.
Revenue Mix
Advanced Packaging came in worse at 65-70% of revenue, which might affect overall performance.
Camtek (CAMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.95B
Dividend Yield1.53%
Average Volume (3M)401.20K
Price to Earnings (P/E)31.9
Beta (1Y)1.96
Revenue Growth27.88%
EPS Growth37.85%
CountryUS
Employees656
SectorTechnology
Sector Strength94
IndustrySemiconductors
Share Statistics
EPS (TTM)0.79
Shares Outstanding45,603,207
10 Day Avg. Volume491,028
30 Day Avg. Volume401,203
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)6.66
Price to Sales (P/S)8.52
P/FCF Ratio32.61
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue8.72
Enterprise Value/Gross Profit17.70
Enterprise Value/Ebitda33.22
Forecast
1Y Price Target
$99.60Price Target Upside13.01% 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: -8.93%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
Camtek's earnings call highlighted significant growth in revenue and strong performance in high-performance computing applications. The launch of new systems and successful product adoption bolster future prospects. However, increased operating expenses and uncertainties in the Chinese market pose challenges.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Camtek concluded the second quarter with revenues reaching $123.3 million, reflecting over 20% growth year-over-year. The company maintained a gross margin of around 52%, contributing to a record operating income of over $37 million.
High-Performance Computing Segment Success
High-performance computing applications contributed approximately 45% to 50% of total revenue. Camtek expects a continued strong momentum and projects Q3 2025 revenue to be approximately $125 million.
Launch of Hawk and Eagle G5 Systems
Camtek launched the Hawk and Eagle 5 systems, which are expected to generate approximately 30% of total revenue this year, with an even larger contribution projected for next year.
Successful Adoption of MicroProf Metrology System
The MicroProf metrology system, originating from the FRT acquisition, has been successfully adopted by a Tier 1 customer for multiple metrology applications, with over 30 systems installed.
Negative Updates
High Operating Expenses
Operating expenses in the quarter were $26.6 million compared to $21.6 million in the second quarter of last year, attributed mainly to high shipping expenses related to the conflict with Iran.
Challenges in China
Although the contribution from China is expected to be slightly higher than the previous year, there is uncertainty about the exact contribution for the second half of the year.
Company Guidance
During the recent call, Camtek provided an optimistic outlook, highlighting their strong performance in the second quarter with record revenues of $123.3 million, marking over 20% growth year-over-year. The company's gross margin remained robust at 51.9%, resulting in an operating income of $37.4 million. High-performance computing (HPC) applications were a significant revenue contributor, accounting for approximately 45% to 50% of total revenue, while advanced packaging applications represented about 20%. Looking forward, Camtek anticipates continued momentum into the third quarter with expected revenues of $125 million, aligning with an annualized run rate of $0.5 billion. The company is experiencing a shift in CoWoS-like production towards OSATs, which is advantageous given Camtek's market position. Additionally, Camtek is witnessing strong customer reception for its Hawk and Eagle 5 systems, which are expected to contribute 30% of total revenue this year. The company also noted positive developments in their metrology segment, with successful adoption of MicroProf metrology systems by a Tier 1 customer. Camtek remains focused on capturing growth opportunities within the evolving advanced packaging market, particularly those supporting AI applications.Camtek Financial Statement Overview
Summary
Camtek demonstrates strong financial performance with impressive revenue and profit growth, effective leverage management, and solid cash generation capabilities. However, fluctuations in EBIT and EBITDA margins and the increase in total debt necessitate 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
Positive
88.13
Price Trends
85.40
Positive
74.54
Positive
77.38
Positive
Market Momentum
-0.29
Positive
47.69
Neutral
37.42
Neutral
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 88.13 is below the 20-day moving average (MA) of 91.26, above the 50-day MA of 85.40, and above the 200-day MA of 77.38, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 37.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.95B | 31.95 | 24.28% | 1.53% | 27.88% | 37.85% | |
74 Outperform | $1.27B | 11.30 | 11.23% | ― | -3.19% | -11.06% | |
62 Neutral | $1.94B | 470.25 | 0.66% | 2.18% | -9.54% | ― | |
62 Neutral | £501.04M | 27.14 | 0.85% | 2.82% | 3.88% | -21.07% | |
60 Neutral | $4.57B | ― | -93.41% | ― | 13.83% | 88.14% | |
59 Neutral | $2.30B | 54.31 | 4.53% | ― | 8.30% | -63.69% | |
57 Neutral | $4.29B | ― | -9.71% | ― | 29.66% | 47.97% |
* Technology Sector Average
Performance Comparison
CAMT
Camtek
87.05
-13.98
-13.84%
FORM
Formfactor
30.25
-18.87
-38.42%
KLIC
Kulicke & Soffa
37.40
-4.75
-11.27%
PLAB
Photronics
21.35
-2.55
-10.67%
SMTC
Semtech
50.52
14.56
40.49%
SLAB
Silicon Laboratories
133.14
28.72
27.50%
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.