NVMINova Ltd.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.1×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Margin-driven, fat margins on slower asset turns. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NVMI?
Nova Ltd. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 29%
Operating margin · Semiconductor Equipment & Materials median 11% · fiscal year to FY2025
- Cash conversion
- 1.13×
Cash conversion · 1.48× a year ago · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 16%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 27% |
| FY2022 | 26% |
| FY2023 | 26% |
| FY2024 | 28% |
| FY2025 | 29% |
Details›
- Gross marginfiscal year to FY2025
- 57%
- Operating marginfiscal year to FY2025
- 29%
- Net marginfiscal year to FY2025
- 29%
- Free cash flow margin
- 25%
- R&D as % of revenue
- 16%
- Revenue, trailing twelve months
- $881M
- Free cash flow, trailing twelve months
- $218M
- Net income, trailing twelve months
- $259M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Semiconductor Equipment & Materials
Ranks #3 of 18 by RyuScore