Why Camtek (CAMT) Stock Is Up Today

NEW YORK (TheStreet) -- Camtek (CAMT) was gaining 7.9% to $4.24 Wednesday after receiving new orders of about $3 million from one of the world's largest OSATs.

The semiconductor equipment company said the new orders will be used for 2D and 3D inspection and metrology for Advanced Packaging semiconductor applications. Camtek expects to install the new systems by the end of the current quarter.

"These new orders validate Camtek's accumulated experience in providing inspection and metrology for a wide range of bump types and sizes, including next generation bumps, used in the emerging advanced packaging market," vice president of and head of Camtek's semiconductor division Ramy Langer said in a statement.

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TheStreet Ratings team rates CAMTEK LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAMTEK LTD (CAMT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 500.6% when compared to the same quarter one year prior, rising from $0.34 million to $2.01 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 4.0%. 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 2.13, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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. We anticipate these figures will begin to experience more growth 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 $0.16 from $0.00.
  • 49.51% is the gross profit margin for CAMTEK LTD which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CAMT's net profit margin of 8.68% significantly trails the industry average.
  • You can view the full analysis from the report here: CAMT Ratings Report

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