Nova Ltd. Ordinary Shares (NVMI)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. Nova sells process control systems for semiconductor manufacturing—metrology tools used in lithography, etch, deposition, and related steps. That is a technically demanding niche with high switching costs, suggesting a real competitive advantage, though the provided data does not let me quantify market share or durability. The financials show quality: in the second quarter of 2026, revenue was $255.0M and net income was $75.0M, a 29.42% net margin. Trailing free cash flow is $189.8M. The balance sheet looks safe, with debt-to-equity of 0.55 and an Altman Z-Score of 10.14, while the Piotroski F-Score is 6/9. Returns are mixed: ROE is 21.11%, but ROCE is 8.47%, so capital efficiency is not exceptional. Valuation is where I hesitate. At the 2026-10-13 close of $342.29, the FairStock P/E is 42.73, P/B is 7.43, EV/EBITDA is 58.27, and PEG is 4.34. Free cash flow yield is only 1.1%. The Graham Number is $91.12, implying a margin of safety of -275.65%. The provided growth figures are 15.90% for revenue and 9.84% for profit, but the price already discounts much more. FairStock scores it 45/100 and assigns no Lynch category because only 0 years of filed results are available and it needs 3. I see a good business, but not a bargain.

In plain English: Nova makes measurement and inspection tools for semiconductor factories. The business is profitable: in the second quarter of 2026, it earned $75.0 million on $255.0 million of revenue. At $342.29 a share as of 2026-10-13, the price looks expensive compared with its current profits and the value of its assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer