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Camtek Ltd (CAMT)
NASDAQ:CAMT
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Camtek
(NASDAQ:CAMT)
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Rating:78Outperform
Price Target:
$115.00
▲(1.47% Upside)
Camtek's strong financial performance and positive earnings call are the primary drivers of its stock score. The technical analysis indicates bullish momentum, though overbought conditions suggest caution. The valuation is relatively high, which could limit upside potential.
Positive Factors
Revenue Growth
Consistent revenue growth demonstrates Camtek's strong market position and product demand, particularly in high-performance computing applications.
Product Innovation
Successful new product launches like the Hawk and Eagle 5 systems enhance Camtek's competitive edge and drive future revenue growth.
Financial Flexibility
The convertible notes offering enhances Camtek's financial flexibility, supporting strategic initiatives and potential acquisitions.
Negative Factors
Increased Operating Expenses
Rising operating expenses, particularly due to high shipping costs, could pressure margins and impact profitability if not managed effectively.
Currency Fluctuation Challenges
Currency fluctuations can affect financial results, posing a risk to earnings stability and requiring effective hedging strategies.
Debt Increase
While leverage is managed prudently, the increase in debt levels necessitates careful monitoring to maintain financial stability.
Camtek (CAMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.42B
Dividend Yield1.17%
Average Volume (3M)546.66K
Price to Earnings (P/E)41.8
Beta (1Y)2.02
Revenue Growth27.88%
EPS Growth37.85%
CountryUS
Employees656
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.79
Shares Outstanding47,794,823
10 Day Avg. Volume656,034
30 Day Avg. Volume546,659
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)6.66
Price to Sales (P/S)8.52
P/FCF Ratio32.61
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue8.35
Enterprise Value/Gross Profit16.84
Enterprise Value/Ebitda30.41
Forecast
1Y Price Target
$104.50Price Target Upside-7.79% Downside
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 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: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with record revenue growth and strong performance in high-performance computing and new product launches. These positives were slightly tempered by increased operating expenses and currency fluctuation challenges.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Q2 revenues reached $123.3 million, reflecting over 20% growth year-over-year. Gross margin maintained around 52%, contributing to a record operating income of over $37 million.
Strong Performance in High-Performance Computing
High-performance computing applications contributed approximately 45% to 50% of total revenue. Camtek expects Q3 2025 revenue to be approximately $125 million, representing an annualized run rate of $0.5 billion.
Successful Launch and Adoption of New Products
The Hawk and Eagle 5 systems, delivering breakthrough performance, are expected to generate approximately 30% of total revenue this year. The MicroProf metrology system has been successfully adopted by a Tier 1 customer with over 30 systems already installed.
Positive Financial Metrics
Net income for Q2 2025 was $38.8 million or $0.79 per diluted share. Cash, cash equivalents, and marketable securities were $544 million as of June 30, 2025.
Negative Updates
Increased Operating Expenses
Operating expenses in the quarter were $26.6 million compared to $21.6 million in the second quarter of last year, mainly due to high shipping expenses related to the conflict with Iran.
Challenges in Currency Fluctuations
Decrease in financial income from the previous quarter was mainly due to the weakness of the U.S. dollar affecting the reevaluation of certain balance sheet items.
Company Guidance
During the recent earnings call, Camtek provided guidance for the third quarter of 2025, projecting revenues to reach approximately $125 million, which aligns with an annualized run rate of $0.5 billion—a significant milestone for the company. This guidance reflects Camtek's strong market position, particularly in high-performance computing (HPC) applications, which contributed 45% to 50% of total revenue. The company also reported record Q2 2025 revenues of $123.3 million, a 20% year-over-year increase, with a gross margin of around 52%. Operating income reached over $37 million despite increased operating expenses, largely due to high shipping costs related to geopolitical tensions. Camtek anticipates continued growth driven by the adoption of advanced packaging technologies, with its new Hawk and Eagle 5 systems expected to account for 30% of total revenue this year. Additionally, the company is seeing strong momentum and a healthy order flow into the fourth quarter, supported by a robust sales pipeline and ongoing customer engagement.Camtek Financial Statement Overview
Summary
Camtek demonstrates strong financial performance with robust revenue growth, effective cost management, and solid cash generation. However, fluctuations in operating efficiency and the need for strategic reinvestment warrant 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 | 471.59M | 429.23M | 315.38M | 320.91M | 269.66M | 155.86M |
| Gross Profit | 233.76M | 209.95M | 147.63M | 159.86M | 137.34M | 73.23M |
| EBITDA | 129.43M | 143.00M | 94.51M | 93.38M | 73.71M | 24.86M |
| Net Income | 133.76M | 118.52M | 78.63M | 79.95M | 60.28M | 21.78M |
Balance Sheet | ||||||
| Total Assets | 974.74M | 892.04M | 787.67M | 677.09M | 583.76M | 287.91M |
| Cash, Cash Equivalents and Short-Term Investments | 435.99M | 388.04M | 354.03M | 399.66M | 397.94M | 177.81M |
| Total Debt | 198.47M | 207.07M | 201.15M | 199.44M | 197.57M | 1.42M |
| Total Liabilities | 348.26M | 342.81M | 311.52M | 292.99M | 290.13M | 60.64M |
| Stockholders Equity | 626.48M | 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
113.33
Price Trends
90.88
Positive
84.54
Positive
79.93
Positive
Market Momentum
7.24
Negative
69.74
Neutral
87.94
Negative
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 113.33 is above the 20-day moving average (MA) of 97.44, above the 50-day MA of 90.88, and above the 200-day MA of 79.93, indicating a bullish trend. The MACD of 7.24 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 87.94 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $9.48B | 44.01 | 24.23% | ― | 43.69% | 51.22% | |
78 Outperform | $2.75B | 18.14 | 16.19% | ― | -19.38% | -33.03% | |
78 Outperform | $5.42B | 41.84 | 24.28% | 1.17% | 27.88% | 37.85% | |
76 Outperform | $7.04B | 35.57 | 10.53% | ― | 15.51% | 20.31% | |
70 Outperform | $3.36B | 41.60 | 10.16% | 2.01% | -0.29% | 1.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $5.24B | ― | -6.75% | ― | -18.82% | -195.20% |
* Technology Sector Average
CAMT
Camtek
113.33
31.40
38.33%
ACLS
Axcelis Technologies
88.71
-10.23
-10.34%
ONTO
Onto Innovation
143.71
-63.01
-30.48%
NVMI
Nova
322.03
121.46
60.56%
SIMO
Silicon Motion
98.85
40.70
69.99%
ALGM
Allegro MicroSystems
28.32
7.27
34.54%
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.