Camtek (CAMT) Stock Falls After Monday's Gain

NEW YORK (TheStreet) -- Camtek  (CAMT) fell off Tuesday after the electronics manufacturing company's nearly 57% gains on Monday.

The company announced the debut of its Eagle product line Monday morning and said it had already received early orders from leading semiconductor device manufacturers. Camtek designed the Eagle product line to support the emerging 'Advanced Packaging' market. It will unveil the line at the Semicon trade show in San Francisco on July 8.

The stock was down 15.34% to $4.25 at 12:12 p.m. on Tuesday. More than 3 million shares had changed by that point, compared to the average volume of 3,065,700.

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Separately, TheStreet Ratings team rates CAMTEK LTD as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAMTEK LTD (CAMT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 22.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CAMT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CAMT has a quick ratio of 2.11, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 166.66% and other important driving factors, this stock has surged by 38.98% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • CAMTEK LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, CAMTEK LTD's EPS of $0.00 remained unchanged from the prior years' EPS of $0.00. This year, the market expects an increase in earnings to $0.13 from $0.00.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, CAMTEK LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: CAMT Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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