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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 was driven by its record quarterly revenue of $224.6 million, a 25% year-over-year increase, which was at the high end of the company's guidance. The company's ability to consistently gain market share in the semiconductor equipment sector has contributed to its success. Analysts have a "Moderate Buy" rating for the stock, with an average 12-month price target of $307.00. Additionally, the company's CFO will participate in investor conferences, providing opportunities for one-on-one meetings. Nova's convertible senior notes offering also highlights its strategic financial management.

1.c. Company Highlights

2. Nova's Q3 2025 Earnings: A Record-Breaking Quarter

Nova's third-quarter 2025 financial results were impressive, with record quarterly revenue of $224.6 million, marking a 25% year-over-year growth. The company's GAAP earnings per diluted share came in at $1.93, while non-GAAP earnings per diluted share were $2.16, beating estimates of $2.12. Gross margins aligned with guidance, achieving 57% on a GAAP basis and 59% on a non-GAAP basis. The company's product revenue distribution was approximately 70% from logic and foundry and 30% from memory. As Gaby Waisman, President and CEO, mentioned, "Nova is well-positioned to support customers with differentiated, scalable, and innovative solutions as the industry continues to evolve, driven by AI and increasingly complex architectures."

Publication Date: Nov -09

📋 Highlights

Revenue Growth Drivers

The record revenue was driven by strong demand in advanced nodes and advanced packaging, with memory devices being a significant contributor, fueled by demand for advanced DRAM and high-bandwidth memory. Advanced logic nodes, particularly gate-all-around processors, also drove record revenue. The company's materials metrology revenue benefited from the adoption of ELIPSON and METRION platforms.

Outlook and Guidance

Nova expects 2025 to be a record year, reflecting growth of approximately 30% year-over-year at the midpoint. Looking ahead, the company anticipates further growth in 2026, with advanced logic, advanced packaging, and DRAM continuing to fuel momentum. The fourth-quarter guidance includes revenue of $215 million to $225 million, GAAP earnings per diluted share of $1.77 to $1.95, and non-GAAP earnings per diluted share of $2.02 to $2.20.

Valuation and Growth Expectations

Analysts estimate next year's revenue growth at 9.7%. With a P/E Ratio of 38.53 and an EV/EBITDA of 36.12, the market is pricing in significant growth expectations. The company's ROE of 24.01% and ROIC of 14.81% indicate a strong ability to generate returns on equity and invested capital. The current valuation multiples suggest that the market is expecting continued strong growth from Nova, driven by its leadership in the semiconductor industry.

3. NewsRoom

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QMET Expands Nova Scotia Drill Program to 2,500 Meters as QIMC Geophysical and Field Work Refines Hydrogen-Anomalous Zones

Dec -04

Source: newsfilecorp.com

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QIMC Expands Phase 1 Winter Hydrogen Drilling Program in Nova Scotia to Over 5,000 Metres Following New INRS Geophysical Advances

Dec -03

Source: newsfilecorp.com

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AWS launches new Nova AI models and a service that gives customers more control

Dec -02

Source: techcrunch.com

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Soitec (OTCMKTS:SLOIF) vs. Nova (NASDAQ:NVMI) Financial Survey

Dec -01

Source: defenseworld.net

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American Century Companies Inc. Increases Holdings in Nova Ltd. $NVMI

Nov -29

Source: defenseworld.net

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Nova Eye Medical Limited (ELXMF) Discusses Clinical Insights and Practice Advantages of iTrack Advance Glaucoma Device Prepared Remarks Transcript

Nov -26

Source: seekingalpha.com

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Brokerages Set Nova Ltd. (NASDAQ:NVMI) PT at $307.00

Nov -25

Source: defenseworld.net

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QIMC's First-Mover Advantage in Nova Scotia Accelerates Regional Claim Rush as Company Prepares for Winter Drilling in Advocate

Nov -24

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

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Melexis

A-Score: 5.1/10

Value: 2.7

Growth: 6.6

Quality: 6.7

Yield: 7.5

Momentum: 3.5

Volatility: 3.7

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Camtek

A-Score: 4.6/10

Value: 2.2

Growth: 8.8

Quality: 8.3

Yield: 0.0

Momentum: 7.5

Volatility: 1.0

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Nova

A-Score: 4.5/10

Value: 0.2

Growth: 8.9

Quality: 8.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

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BESI

A-Score: 4.2/10

Value: 0.0

Growth: 4.7

Quality: 7.6

Yield: 5.0

Momentum: 6.5

Volatility: 1.7

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AIXTRON

A-Score: 4.2/10

Value: 4.9

Growth: 7.0

Quality: 6.8

Yield: 1.2

Momentum: 4.0

Volatility: 1.3

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Tower Semi

A-Score: 4.2/10

Value: 3.3

Growth: 5.0

Quality: 5.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

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

324.99$

Current Price

325.0$

Potential

-0.00%

Expected Cash-Flows