One-glance verdict
Overvalued
$73.37 our estimate vs market $147.97
Wall Street consensus: $184.00 (150.8% higher than our fair-value estimate)
102% above our estimate, beyond the bull case
Fundamentals snapshot
Camtek Ltd.
CAMT · NGM · Technology · Semiconductor Equipment & Materials
Current price
$147.97
52-week range
$82.59 - $215.99
Market cap
$6.91B
Balance sheet
Healthy
77.42x Strong cushion
Net cash $182.45M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 15.6% last year.
- Reward Returns 7.6% on equity, ahead of 16% of its peers.
- Risk Stock trades 316.7% above its 5-year average P/E.
- Risk Operating margin compressed from 25.4% to 22.4% over 3 years.
What this company does
Camtek Ltd.
Camtek builds and sells highly advanced machines that act like powerful magnifying glasses to inspect and measure computer chips for flaws during manufacturing. The company makes its money selling this essential quality-control equipment to chipmakers globally, who need it to ensure the tiny electronic brains inside our phones, computers, and cars work perfectly. As chips become more complex, this inspection becomes even more critical to the entire electronics industry.
How the company got here
Founded in Israel in 1987, Camtek has become a key supplier for the semiconductor industry. The company specializes in developing and manufacturing high-end equipment that inspects and measures semiconductor wafers, which are the thin slices of silicon that computer chips are built on. Over the years, Camtek has grown by focusing on innovation, particularly in the area of advanced packaging, a critical process for making the powerful chips used in artificial intelligence (AI) and high-performance computing. A key move was the 2023 acquisition of FRT Metrology, which broadened its technological capabilities and market reach. This focus on specialized, high-demand areas of the chip manufacturing process has established Camtek as a critical partner for major semiconductor manufacturers worldwide.
What it actually does
Think of Camtek as a quality control specialist for the tiny, complex world of computer chips. Before a chip makes it into your phone or computer, it's part of a larger disc called a wafer, and it's incredibly important that every part of that wafer is perfect. Camtek builds highly advanced machines with powerful cameras and sensors that scan these wafers to find and measure microscopic defects that are invisible to the human eye. This process, known as inspection and metrology (the science of measurement), helps chipmakers ensure their products will work correctly, which saves them from wasting money on faulty products. Their equipment is used by companies that manufacture chips, as well as those that assemble and test them.
Inspection and Metrology Equipment
This is Camtek's primary business, making up the vast majority of its sales. The company designs and sells a range of systems, with names like 'Eagle' and 'Hawk', that are essentially very sophisticated inspection stations for the semiconductor production line. Chip manufacturers (their customers) buy this equipment to automatically scan wafers and identify tiny flaws, ensuring the quality and reliability of the final chips. This is especially crucial for advanced packaging, a method of stacking chips to make them more powerful and efficient, which is a major and fast-growing part of Camtek's business.
Services
Beyond selling the machines themselves, Camtek also earns a smaller portion of its money from service fees. This includes things like installation, training, and ongoing maintenance and support for the inspection and metrology equipment they've sold. Think of it like the service plan you might buy for a new car; it ensures the complex machinery continues to run smoothly and accurately. This provides a steady, recurring stream of revenue (income that is predictable and likely to continue in the future) for the company.
What management is betting on now
Camtek's leadership is heavily focused on the growing demand for chips used in artificial intelligence (AI), 5G networks, and high-performance computing. A significant portion of their revenue is already tied to AI-related chip production. To capitalize on this, the company is investing in new technologies, like using its own AI-based software to make its inspection systems even better at finding defects. They are also expanding their manufacturing capacity to meet the expected increase in orders for their equipment, particularly for advanced packaging applications which are essential for the next generation of powerful electronics.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$112.14M
FY2025 Q4
$127.47M
Revenue
$496.07M
Net income
$50.72M
Diluted EPS
1.04
Operating cash flow
$141.87M
Free cash flow
$127.47M
Fetching…
Sources
Revenue
$429.23M
Net income
$118.52M
Diluted EPS
2.42
Operating cash flow
$122.24M
Free cash flow
$112.14M
Fetching…
Sources
Is it cheap or expensive?
Fair value $73.37 vs current price $147.97
Wall Street consensus is the average analyst price target: $184.00 (150.8% higher than our fair-value estimate).
Our most-likely fair value is $73.37 a share — about 50.4% below today's price of $147.97, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $182.4M - more cash than debt. Interest coverage 77.4x.
Net debt
$-182.45M
Interest coverage
77.42x
Camtek Ltd.'s profit covers its interest bill about 77.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CAMT
BASELINE
Camtek Ltd.
Total debt $487.81M Interest coverage 77.42x This is the baseline the peer rows are being compared against.
Total debt $1.47B Interest coverage 4.33x -94% vs CAMT Carries about 17.9x less debt cushion than CAMT.
Total debt $803.50M Interest coverage 197.40x +155% vs CAMT Carries about 2.5x more debt cushion than CAMT.
Total debt $29.91M Interest coverage 115.35x +49% vs CAMT Carries about 1.5x more debt cushion than CAMT.
Total debt $4.19B Interest coverage 2.48x -97% vs CAMT Carries about 31.3x less debt cushion than CAMT.
Total debt $38.12M Interest coverage -293.99x -100% vs CAMT This peer has almost no interest-payment cushion compared with CAMT.
What you should know
The case for and against CAMT
3 Rewards
2 Risks
Rewards
-
Revenue grew 15.6% last year.
-
Returns 7.6% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 316.7% above its 5-year average P/E.
-
Operating margin compressed from 25.4% to 22.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
199.96x
Forward P/E
30.90x
P/B
10.99x
P/S
13.84x
EV/EBITDA
50.32x
PEG ratio
2.12x
Profitability
How much profit each dollar creates
Gross margin
51.0%
Operating margin
22.4%
Net margin
9.6%
ROE
7.6%
ROA
7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.71x
Current ratio
8.35x
Quick ratio
7.14x
Total debt
$487.81M
Total cash
$670.26M
Growth
How the business has been compounding
Revenue TTM
$1.56B
Revenue 5Y CAGR
16.5%
EPS TTM
0.74
EPS 5Y CAGR
-14.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$401.23M
Free CF TTM
$127.47M
FCF margin
8.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2024-04-03