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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's recent performance was driven by strong quarterly results, with Q3 2025 earnings beating estimates at $0.82 per share. The company's record results were fueled by growth in AI-driven semiconductor manufacturing, particularly in advanced packaging inspection and metrology systems. Needham and Company LLC's recent analyst upgrade, raising the price target to $135, also contributed to the positive momentum. Additionally, Camtek's exposure to the AI investment supercycle, with memory-related revenue now around 30% of total, positions the company for continued growth.

1.c. Company Highlights

2. Camtek's Q3 Earnings: A Record-Breaking Performance

Camtek reported a record-breaking performance in Q3, with revenues reaching $126 million, reflecting 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. The company's EPS for Q3 was $0.82, slightly beating estimates of $0.803. The strong financial performance was driven by high-performance computing applications, which accounted for approximately 45% of total revenue.

Publication Date: Dec -25

📋 Highlights
  • Q3 Revenue & Growth:: Revenues reached $126 million, up 12% year-over-year, with $37.6 million in record operating income.
  • Cash Position:: Strong liquidity of $800 million, bolstered by a $500 million convertible notes offering.
  • Revenue Segments:: High-performance computing (HPC) contributed 45%, while advanced packaging accounted for 25%.
  • 2024 Guidance:: Projects $495 million in annual revenue, a 15% growth over 2023, with Q4 revenue at $125 million.
  • New Product Impact:: Eagle G5 and Hawk expected to drive 30% of revenue in 2025, with enhanced versions boosting throughput in 2026.

Segment Performance

High-performance computing applications were the main driver of growth, accounting for 45% of total revenue, while other advanced packaging applications accounted for about 25%. The company continues to see a shift of CoWoS-like production toward OSATs, a trend that is favorable for its business. Camtek has received significant orders for installation this year from 2 Tier 1 OSATs for CoWoS and CoWoS-like applications.

Outlook and Guidance

Camtek expects revenue to be around $125 million in Q4, representing a record year with a strong growth of 15% over 2024. The company is optimistic about its growth prospects, driven by sustained growth and continued investment in wafer fab equipment. For 2026, Camtek expects a growth year, with a stronger second half, driven by high-performance computing (HPC) applications.

Valuation and Metrics

Camtek's current valuation metrics are as follows: P/E Ratio of 104.4, P/B Ratio of 8.64, P/S Ratio of 10.27, and EV/EBITDA of 84.65. The company's ROE is 8.17%, and ROIC is 11.0%. With a strong balance sheet and a recent convertible offering enhancing its inorganic growth options, Camtek is well-positioned for future growth.

Growth Prospects

The company's new products, Eagle G5 and Hawk, are expected to contribute approximately 30% of its revenue in 2025. Camtek is planning to introduce an enhanced version of the Hawk early next year, featuring significant improvement in throughput and overall performance. The company sees opportunities in hybrid bonding, particularly in 2D inspection and metrology, but expects revenue contribution from this area to be moderate in 2026.

3. NewsRoom

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CAMTEK TO REPORT FOURTH QUARTER & FULL YEAR 2025 FINANCIAL RESULTS ON WEDNESDAY, FEBRUARY 18, 2026

Feb -02

Source: prnewswire.com

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2026’s Biggest AI Trends: The Memory Explosion | MU Stock, SNDK Stock, SK Hynix, CAMT Stock

Jan -16

Source:

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Camtek: Fundamentals Are Solid With Exposure To AI Investment Supercycle

Jan -15

Source: seekingalpha.com

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Why Camtek (CAMT) Dipped More Than Broader Market Today

Jan -15

Source: zacks.com

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Camtek Ltd. (NASDAQ:CAMT) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Jan -14

Source: defenseworld.net

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The Outlook for 3 Non-U.S. Chip Stocks That Soared in 2025

Jan -12

Source: marketbeat.com

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Camtek (CAMT) Stock Drops Despite Market Gains: Important Facts to Note

Jan -09

Source: zacks.com

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Camtek (NASDAQ:CAMT) Hits New 52-Week High Following Analyst Upgrade

Jan -07

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

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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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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

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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

139.98$

Current Price

139.98$

Potential

-0.00%

Expected Cash-Flows