One-glance verdict
Undervalued
$24.64 our estimate vs market $4.05
84% below our estimate, below the bear case
Fundamentals snapshot
CVD Equipment Corporation
CVV · NCM · Industrials · Specialty Industrial Machinery
Current price
$4.05
52-week range
$2.96 - $9.10
Market cap
$28.15M
Balance sheet
Healthy
-134.38x Concerning
Net cash $23.48M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -7.1% to -79.8% over 3 years.
- Risk Return on equity was -10.3% last year — the company lost money on shareholders' equity.
What this company does
CVD Equipment Corporation
CVD Equipment Corporation makes special machines that help other companies create advanced materials and coatings, like those used in electronics and airplanes. Most of their money comes from selling these machines and related parts, which is important because it shows how much demand there is for their high-tech products.
How the company got here
CVD Equipment Corporation was founded in 1982 and has spent over four decades developing and manufacturing specialized equipment for creating advanced materials and coatings. The company's journey has been marked by a focus on enabling new technologies, particularly in high-growth sectors like semiconductors, aerospace, and renewable energy. They've built a reputation for providing reliable, high-quality tools that support both research and development and full-scale production, aiming to help innovators transition their ideas from the lab to the market.
What it actually does
CVD Equipment Corporation designs, develops, and manufactures specialized equipment used to create advanced materials and coatings. Think of them as a toolmaker for high-tech industries. Their machines are essential for processes like chemical vapor deposition (CVD) and physical vapor transport (PVT), which are used to apply thin layers of materials onto surfaces. These processes are critical for making everything from the chips in your phone to components in airplanes and batteries for electric vehicles.
CVD Equipment
This is the company's core business, focusing on the design and manufacturing of equipment for chemical vapor deposition (CVD), physical vapor transport (PVT), and thermal processing. These machines are used across various industries, including high-power electronics (like those using silicon carbide), aerospace for advanced materials in jet engines, and for creating nanomaterials used in batteries and semiconductors. The 'FirstNano' brand is associated with this segment, serving both industrial production and research applications.
Stainless Design Concepts (SDC)
The Stainless Design Concepts segment specializes in creating ultra-high purity gas and chemical delivery control systems. These systems are crucial for maintaining the extreme cleanliness required in semiconductor fabrication processes. They are also used in aerospace, solar cell production, and other industrial applications where precise control of gases and chemicals is essential.
MesoScribe
This segment is involved with advanced materials and coatings, offering products and services related to electronic printing. This includes technologies like MesoPlasma printing services and the creation of components such as heaters, antennas, and sensors. MesoScribe focuses on specialized applications within the advanced materials space.
What management is betting on now
CVD Equipment Corporation is strategically repositioning itself to focus on high-growth markets, particularly those driven by the 'Electrification of Everything' trend. This includes a strong emphasis on the silicon carbide (SiC) market for high-power electronics and electric vehicles (EVs), as well as aerospace and defense applications. The company is also undergoing a restructuring, which involves streamlining operations, potentially outsourcing some manufacturing, and evaluating strategic alternatives for certain business lines to improve efficiency and focus on core competencies.
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 Q3
$-5.00K
FY2024 Q4
$2.14M
FY2025 Q1
$-2.31M
FY2025 Q2
$-3.17M
FY2025 Q3
$1.36M
FY2025 Q4
$396.00K
FY2026 Q1
$-865.00K
FY2026 Q2
$-426.00K
Revenue
$1.95M
Net income
$12.56M
Diluted EPS
1.81
Operating cash flow
$-425.00K
Free cash flow
$-426.00K
Fetching…
Sources
Revenue
$1.84M
Net income
$-1.66M
Diluted EPS
-0.24
Operating cash flow
$-852.00K
Free cash flow
$-865.00K
Fetching…
Sources
Revenue
$4.95M
Net income
$-1.27M
Diluted EPS
-0.19
Operating cash flow
$397.00K
Free cash flow
$396.00K
Fetching…
Sources
Revenue
$7.41M
Net income
$384.00K
Diluted EPS
0.06
Operating cash flow
$1.36M
Free cash flow
$1.36M
Fetching…
Sources
Revenue
$5.11M
Net income
$-1.06M
Diluted EPS
-0.15
Operating cash flow
$-3.17M
Free cash flow
$-3.17M
Fetching…
Sources
Revenue
$8.32M
Net income
$360.00K
Diluted EPS
0.05
Operating cash flow
$-2.26M
Free cash flow
$-2.31M
Fetching…
Sources
Revenue
$7.42M
Net income
$132.00K
Diluted EPS
0.02
Operating cash flow
$2.25M
Free cash flow
$2.14M
Fetching…
Sources
Revenue
$8.19M
Net income
$203.00K
Diluted EPS
0.03
Operating cash flow
$32.00K
Free cash flow
$-5.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $24.64 vs current price $4.05
Our most-likely fair value is $24.64 a share — about 508.5% above today's price of $4.05, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $23.5M - more cash than debt. Interest coverage -134.4x.
Net debt
$-23.48M
Interest coverage
-134.38x
CVD Equipment Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CVV
BASELINE
CVD Equipment Corporation
Total debt $0.00 Interest coverage -134.38x This is the baseline the peer rows are being compared against.
Total debt $17.89M Interest coverage -177.58x Neither company has much profit cushion over interest right now.
Total debt $101.53M Interest coverage -16.40x Neither company has much profit cushion over interest right now.
Total debt $21.84M Interest coverage 0.13x This peer still has a real interest-payment cushion, while CVV does not.
Total debt $9.84M Interest coverage -115.37x Neither company has much profit cushion over interest right now.
What you should know
The case for and against CVV
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -7.1% to -79.8% over 3 years.
-
Return on equity was -10.3% last year — the company lost money on shareholders' equity.
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)
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Forward P/E
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P/B
0.78x
P/S
1.42x
EV/EBITDA
-1.63x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
27.6%
Operating margin
-79.8%
Net margin
50.5%
ROE
-10.3%
ROA
-6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
11.52x
Quick ratio
10.90x
Total debt
$0.00
Total cash
$23.48M
Growth
How the business has been compounding
Revenue TTM
$16.16M
Revenue 5Y CAGR
5.3%
EPS TTM
-0.57
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$477.00K
Free CF TTM
$-3.73M
FCF margin
-23.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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