Q: Can you please give us your thoughts on CAMTEK and information about company. Do you consider as BUY OR AVOID. I am a long term investor.
Thanks for your great service
Thanks for your great service
5i Research Answer:
CAMT is a mid-cap semi-conductor company that has nearly trippled in price over the last year. It is expensive at 34x forward earnings but growth forecasts are high for the next two years. The balance sheet is solid but it does have some debt with a debt-to-equity ratio of 0.41x while being net cash positive. Insider ownership is high at 38.8% which is a positive we like to see. Growth has been driven by the company's high bandwith memory (HBM) and chiplet products which are a key inputs in AI applications. We are comfortable starting a position here although we do want to note that it is a riskier play in the industry due to its smaller size and how the run up in demand it has had has been recent and quick.