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1. Company Snapshot

1.a. Company Description

Camtek 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.

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1.b. Last Insights on CAMT

Camtek Ltd.'s recent performance was positively driven by its Q3 FY2025 earnings release, which beat estimates with quarterly earnings of $0.82 per share. The company's strong results were highlighted by record revenues, with management expecting another robust quarter with revenues around $127 million in Q4. As an AI play, Camtek's prospects are closely tied to AI spending, which must remain steady to support growth. Brokerages have given the stock a "Moderate Buy" rating, with nine recommending a buy.

1.c. Company Highlights

2. Camtek's Q3 Earnings: A Record Performance

Camtek concluded the third quarter with a record performance, posting revenues of $126 million, a 12% year-over-year growth. The company's gross margin remained solid at 51.5%, contributing to a record operating income of $37.6 million. Earnings per diluted share came in at $0.82, beating estimates of $0.8. The strong financial performance was driven by high-performance computing applications, which accounted for approximately 45% of total revenue, while other advanced packaging applications contributed around 25%. Camtek's cash and cash equivalents, including short- and long-term deposits and marketable securities, stood at $794 million.

Publication Date: Nov -13

📋 Highlights
  • Q3 Revenue & Growth:: Revenues reached $126 million, 12% year-over-year increase with 51.5% gross margin and $37.6 million operating income.
  • Revenue Composition & Trends:: HPC applications accounted for 45%, advanced packaging 25%, with CoWoS-like orders driving OSAT demand and significant Tier 1 OSAT contracts.
  • Q4 Guidance & Annual Projections:: Q4 2025 revenue expected at $125 million, leading to $495 million annual revenue (15% growth over 2024), with new Eagle G5/Hawk products contributing 30% of 2025 revenue.
  • Financial Strength & Cash Position:: $794 million cash reserves post $500 million convertible notes offering, $40.9 million net income, and $0.82 diluted EPS for Q3 2025.

Segment Performance

The company's high-performance computing (HPC) business, which accounted for roughly 50% of Camtek's business, continues to drive growth, driven by demand for high-bandwidth memory (HBM) and CoWoS (Chip-on-Wafer-on-Substrate) technology. Camtek has received significant orders for installation this year from 2 Tier 1 OSATs for CoWoS and CoWoS-like applications, indicating a strong position in the industry.

Outlook and Guidance

Camtek expects Q4 2025 revenue to be around $125 million, representing annual revenue of $495 million, a record year with a strong growth of 15% over 2024. For 2026, the company expects a growth year, with a somewhat slower start, as the market continues to absorb existing capacity before the next wave of expansion begins. Management is confident in its second-half 2026 growth prospects, driven by the increasing demand for HPC and advanced packaging applications.

Valuation and Metrics

With a P/E Ratio of 35.2 and an EV/EBITDA of 36.01, Camtek's valuation suggests that the market is pricing in a certain level of growth. The company's ROE (%) of 23.49 and ROIC (%) of 13.36 indicate a strong return on equity and invested capital. Analysts estimate next year's revenue growth at 5.3%, which may be conservative given the company's strong track record and growth prospects.

Gross Margin Expansion

Moshe Eisenberg mentioned that gross margins should gradually improve over the next few quarters as Camtek ships more products from its new tools, the Hawk and Gen 5, which have higher gross margins. This is a positive development, as it suggests that the company's profitability will continue to improve in the coming quarters.

3. NewsRoom

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Camtek: Much Depends On Where In The Cycle We Are

Nov -17

Source: seekingalpha.com

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Camtek Ltd. (CAMT) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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Camtek (CAMT) Surpasses Q3 Earnings and Revenue Estimates

Nov -10

Source: zacks.com

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CAMTEK ANNOUNCES RECORD RESULTS FOR THE THIRD QUARTER OF 2025

Nov -10

Source: prnewswire.com

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Camtek (CAMT) Falls More Steeply Than Broader Market: What Investors Need to Know

Nov -07

Source: zacks.com

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Camtek Ltd. (NASDAQ:CAMT) Given Average Recommendation of “Moderate Buy” by Brokerages

Oct -31

Source: defenseworld.net

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CAMTEK TO REPORT THIRD QUARTER 2025 FINANCIAL RESULTS ON MONDAY, NOVEMBER 10, 2025

Oct -30

Source: prnewswire.com

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Stephens Inc. AR Buys New Position in Camtek Ltd. $CAMT

Oct -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.17%)

6. Segments

Inspection and Metrology Equipment

Expected Growth: 14.0%

Camtek's Inspection and Metrology Equipment segment growth of 14.0% is driven by increasing demand for advanced semiconductor manufacturing, rising adoption of 5G and IoT devices, and growing need for quality control and precision measurement in industries such as automotive and aerospace.

Service

Expected Growth: 18.0%

Camtek Ltd.'s 18.0% growth is driven by increasing demand for semiconductor inspection and metrology solutions, fueled by the rising adoption of 5G, IoT, and AI technologies. Additionally, the company's expansion into new markets, such as advanced packaging and CMOS image sensors, contributes to its growth momentum.

7. Detailed Products

Automated Optical Inspection (AOI) Systems

Camtek's AOI systems are designed to inspect and detect defects on printed circuit boards (PCBs) and other electronic components.

2D and 3D Metrology Systems

Camtek's metrology systems provide accurate measurements of electronic components and PCBs, enabling precise quality control and process optimization.

In-Line Inspection and Metrology Systems

Camtek's in-line inspection and metrology systems integrate AOI and metrology capabilities to provide real-time quality control and process optimization.

Software Solutions

Camtek's software solutions provide advanced data analytics, process control, and quality management capabilities for the electronics manufacturing industry.

8. Camtek Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Camtek Ltd. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the semiconductor industry.

Bargaining Power Of Customers

Camtek Ltd.'s customers are large semiconductor manufacturers with significant bargaining power, which can impact pricing and sales.

Bargaining Power Of Suppliers

Camtek Ltd. has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, making it difficult for new entrants to compete with established players like Camtek Ltd.

Intensity Of Rivalry

The semiconductor industry is highly competitive, but Camtek Ltd. has a strong market position and differentiated products, reducing the intensity of 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 29.42%
Debt Cost 3.95%
Equity Weight 70.58%
Equity Cost 10.98%
WACC 8.91%
Leverage 41.69%

11. Quality Control: Camtek 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: 2.7

Growth: 6.6

Quality: 6.7

Yield: 7.5

Momentum: 3.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Camtek

A-Score: 4.6/10

Value: 2.2

Growth: 8.8

Quality: 8.3

Yield: 0.0

Momentum: 7.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Nova

A-Score: 4.5/10

Value: 0.2

Growth: 8.9

Quality: 8.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
BESI

A-Score: 4.2/10

Value: 0.0

Growth: 4.7

Quality: 7.6

Yield: 5.0

Momentum: 6.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
AIXTRON

A-Score: 4.2/10

Value: 4.9

Growth: 7.0

Quality: 6.8

Yield: 1.2

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
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

117.07$

Current Price

117.07$

Potential

-0.00%

Expected Cash-Flows