Nova Ltd. (NVMI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coherent Corp.

Nova Ltd.

Rockwell Automation, Inc.

Keysight Technologies, Inc.

NCR Voyix Corp.

Sensata Technologies Holding Plc

Cognex Corp.

Emerson Electric Co.

Novanta, Inc.

Onto Innovation, Inc.

Fortive Corp.

Why is Nova Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.46%

Healthy long term growth as Net Sales has grown by an annual rate of 26.73% and Operating profit at 35.46%
Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 260.5 MM
RAW MATERIAL COST(Y) Fallen by -2.09% (YoY)
CASH AND EQV(HY) Highest at USD 2,136.53 MM

With ROE of 21.42%, it has a attractive valuation with a 9.05 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 90.77%, its profits have risen by 52.8% ; the PEG ratio of the company is 0.8

High Institutional Holdings at 79.42%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 90.77% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nova Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nova Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nova Ltd.

90.77%

1.50

55.10%

S&P 500

17.45%

0.90

19.38%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.73%

EBIT Growth (5y)

35.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.55

Tax Ratio

15.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

79.42%

ROCE (avg)

36.58%

ROE (avg)

19.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.05

EV to EBIT

40.79

EV to EBITDA

37.72

EV to Capital Employed

13.68

EV to Sales

11.81

PEG Ratio

0.82

Dividend Yield

ROCE (Latest)

33.53%

ROE (Latest)

21.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 260.5 MM

RAW MATERIAL COST(Y)

Fallen by -2.09% (YoY

CASH AND EQV(HY)

Highest at USD 2,136.53 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.21 times

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -18.92 %

OPERATING PROFIT MARGIN(Q)

Lowest at 30.12 %

Here's what is working for Nova Ltd.

Operating Cash Flow

Highest at USD 260.5 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 2,136.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 6.31 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Nova Ltd.

Operating Profit Margin

Lowest at 30.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -18.92 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio