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1. Company Snapshot

1.a. Company Description

Nova Ltd.designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally.Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging.


The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers.Nova Ltd.was formerly known as Nova Measuring Instruments Ltd.


and changed its name to Nova Ltd.in July 2021.The company was incorporated in 1993 and is headquartered in Rehovot, Israel.

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1.b. Last Insights on NVMI

Nova Ltd.'s recent performance is driven by strong Q4 2025 earnings, beating estimates with $2.14 per share, a 10% increase year-over-year. The company's revenue reached $222.6 million, up 14% year-over-year. Analysts have a consensus "Buy" rating, with a price target of $439.00. Institutional investors, such as Bamco Inc. NY, have increased their stake in the company. Nova Ltd.'s growth prospects are driven by its leadership in integrated metrology and process control solutions for semiconductor manufacturers, targeting $1.15B revenue by 2027.

1.c. Company Highlights

2. Nova Ltd. Posts Record Annual Revenue and Profitability

Nova Ltd. reported record annual revenue of $880.6 million, up 31% year-over-year, with record GAAP and non-GAAP profitability. In Q4 2025, revenue reached $222.6 million, up 14% year-over-year, with blended gross margins of 57.6% on a GAAP basis and 59.6% on a non-GAAP basis. Earnings per share in Q4 on a GAAP basis were $1.94 per diluted share, and on a non-GAAP basis were $2.14 per diluted share, slightly beating estimates of $2.13. The company's strong financial performance was driven by its growth engines, including advanced logic, gate-all-around, and DRAM.

Publication Date: Feb -15

📋 Highlights
  • Record Annual Revenue:: Nova Ltd. achieved $880.6 million in revenue, a 31% YoY increase, with Q4 revenue of $222.6 million (14% YoY growth).
  • Profitability Highlights:: GAAP gross margin of 57.6% and non-GAAP margin of 59.6% in Q4, with EPS of $1.94 (GAAP) and $2.14 (non-GAAP).
  • 2026 Growth Projections:: Anticipates low double-digit WFE growth, driven by advanced logic, gate-all-around (GAA), DRAM, and advanced packaging, aiming to surpass WFE market growth.
  • Regional Revenue Shift:: China sales contribution dropped to 30% in 2026 (from 33% in 2025), while Taiwan revenue surged 90% YoY in 2025.
  • Advanced Packaging Growth:: Expected low double-digit revenue growth in 2026, supported by expanded solutions and strong customer engagement in hybrid bonding and high-bandwidth memory.

Growth Drivers

For 2026, Nova Ltd. expects WFE to grow in low double digits and plans to outperform it, driven by advanced logic, DRAM, and advanced packaging. Customer conversations indicate increasing investments, particularly in gate-all-around processes, DRAM, and high-bandwidth memory, with a focus on hybrid bonding. The company's Taiwan revenue increased nearly 90% year-over-year in 2025, reflecting its strong position in the market.

Valuation Metrics

With a P/E Ratio of 59.1 and an EV/EBITDA of 49.06, Nova Ltd.'s valuation suggests that the market is pricing in significant growth expectations. The company's ROE of 23.46% and ROIC of 10.05% indicate strong profitability. The P/S Ratio of 15.58 also reflects the market's expectations for the company's revenue growth, which is expected to be around 19.5% next year.

Guidance and Outlook

For Q1 2026, Nova Ltd. expects revenue to be between $222 million and $232 million, with GAAP earnings per diluted share ranging from $1.90 to $2.02 and non-GAAP earnings per diluted share ranging from $2.13 to $2.25. The company has made significant investments to expand manufacturing capacity, including clean room capacity for advanced packaging and new production capacity in Asia. The company sees 2026 as another growth year with several key drivers, including advanced logic and gate-all-around, DRAM and high-bandwidth memory, and advanced packaging.

Operational Highlights

The company has made significant progress in its growth engines, including advanced logic, gate-all-around, and DRAM. Nova Ltd. expects to reach the $500 million mark in gate-all-around accumulated revenue from 2024 to 2026, with 2026 expected to be higher than 2025. The company's advanced packaging revenue is expected to grow in low double digits, driven by its engagement with all players and introduction of more solutions and capabilities.

3. NewsRoom

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Nova Minerals CEO to Present at the Emerging Growth Conference

Mar -20

Source: globenewswire.com

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Quebec Innovative Materials Corp. to Host Live X Spaces Q&A on DDH-26-02 Results from West Advocate Hydrogen Project, Nova Scotia

Mar -19

Source: newsfilecorp.com

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QIMC Reports Results from Hole 1 DDH-26-01 at West-Advocate Natural Hydrogen Project, Nova Scotia; R2G2(TM) Exploration Model Applied

Mar -17

Source: newsfilecorp.com

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Nova Pacific Metals Announces Mineral Resource Estimate for the Coronation Deposit at the Lara Project, Highlighting Open-Pit Potential

Mar -17

Source: newsfilecorp.com

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Government of Canada Selects Spaceport Nova Scotia as Dedicated Sovereign Launch Site for National Defence

Mar -16

Source: prnewswire.com

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Nova Ltd. $NVMI Shares Acquired by Bamco Inc. NY

Mar -16

Source: defenseworld.net

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Happy Belly Food Group's Rosie's Burgers Announces the Grand Opening of Its Newest Location in Halifax, Nova Scotia

Mar -13

Source: newsfilecorp.com

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QIMC Completes 711 Metre Discovery Hole DDH-26-01 at West-Advocate, Nova Scotia: Hydrogen System Confirmed at Depth

Mar -10

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.81%)

6. Segments

Metrology Solutions

Expected Growth: 8.5%

Nova Ltd.'s Metrology Solutions segment growth of 8.5% is driven by increasing demand for precision measurement and quality control in industries such as aerospace, automotive, and healthcare. Additionally, advancements in IoT and Industry 4.0 technologies are fueling the need for accurate and reliable measurement solutions, further propelling growth.

Services

Expected Growth: 9.9%

Nova Ltd.'s 9.9% growth is driven by increasing demand for digital transformation, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer-centric approach, and efficient cost management have contributed to its rapid growth.

7. Detailed Products

NovaCloud

A cloud-based infrastructure solution providing scalable and secure computing resources

NovaSecure

A comprehensive cybersecurity solution offering threat detection, incident response, and penetration testing

NovaAnalytics

A data analytics platform providing insights and visualization tools for business intelligence

NovaConnect

A unified communication and collaboration platform for teams and organizations

NovaAI

An artificial intelligence and machine learning platform for automation and predictive modeling

8. Nova Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Nova Ltd. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Nova Ltd. has a large customer base, but customers have significant bargaining power due to the availability of alternative products.

Bargaining Power Of Suppliers

Nova Ltd. has a diverse supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

Nova Ltd. operates in a moderately competitive industry, with some barriers to entry, but new entrants can still pose a threat.

Intensity Of Rivalry

Nova Ltd. operates in a highly competitive industry, with many established players, leading to intense rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.54%
Debt Cost 3.95%
Equity Weight 75.46%
Equity Cost 10.92%
WACC 9.21%
Leverage 32.52%

11. Quality Control: Nova Ltd. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Melexis

A-Score: 5.1/10

Value: 2.9

Growth: 6.7

Quality: 6.5

Yield: 7.5

Momentum: 3.5

Volatility: 3.7

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AIXTRON

A-Score: 4.6/10

Value: 3.3

Growth: 7.0

Quality: 6.3

Yield: 1.9

Momentum: 8.0

Volatility: 1.0

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Nova

A-Score: 4.3/10

Value: 0.5

Growth: 8.9

Quality: 7.6

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

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BESI

A-Score: 4.2/10

Value: 0.0

Growth: 4.8

Quality: 7.3

Yield: 5.0

Momentum: 6.5

Volatility: 1.7

1-Year Total Return ->

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Tower Semi

A-Score: 4.1/10

Value: 2.4

Growth: 5.1

Quality: 5.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

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Camtek

A-Score: 3.8/10

Value: 0.7

Growth: 8.8

Quality: 5.0

Yield: 0.0

Momentum: 7.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

465.3$

Current Price

465.3$

Potential

-0.00%

Expected Cash-Flows