NovaFRA:NMR -9.57%94 ROE % is 20.60% as of Mar. 2026, which is 5% below its 10-year median of 21.67. GuruFocus rates FRA:NMR with a GF Score™ of 94/100 and a GF Value™ of €268.91 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,002 Semiconductors companies, Nova ranks better than 88.32% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Nova's annualized net income for the quarter that ended in Mar. 2026 was €239.6 Mil. Nova's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €1,163.0 Mil. Therefore, Nova's annualized ROE % for the quarter that ended in Mar. 2026 was 20.60%.
The historical rank and industry rank for Nova's ROE % or its related term are showing as below:
FRA:NMR'
s ROE % Range Over the Past 10 Years
Min: 5.74 Med: 21.67 Max: 26.44
Current: 22.14
During the past 13 years, Nova's highest ROE % was 26.44%. The lowest was 5.74%. And the median was 21.67%.
FRA:NMR's ROE % is ranked better than 88.32% of 1002
companies
in the Semiconductors industry
Industry Median: 4.55
vs FRA:NMR: 22.14
Nova (FRA:NMR) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Nova ROE % Related Terms
Nova ROE % Historical Data
* Premium members only.
The historical data trend for Nova's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductor Equipment & Materials subindustry, Nova's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nova ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Nova's ROE % distribution charts can be found below:
* The bar in red indicates where Nova's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Nova (FRA:NMR) has a ROE % of 20.60% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nova and its competitors. This is near median its historical median of 21.67. Over the past decade, Nova's ROE % has ranged from 5.74 to 26.44. According to the industry distribution chart, Nova ranks #117 out of 1002 companies in the Semiconductors industry, placing it in the top 11.7%.
Is Nova's ROE % too high?
Nova's current ROE % of 20.60% is near median its 10-year median of 21.67. Over the past 10 years, this metric has ranged from a low of 5.74 to a high of 26.44. The Semiconductors industry median ROE % is 4.55. Nova's value of 20.60% is 352.7% above this industry median. Based on the distribution chart, Nova ranks #117 out of 1002 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Nova has a GF Score™ of 94/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nova's ROE % compare to AMKR and ONTO?
According to the Semiconductors industry distribution chart, Nova ranks #117 out of 1002 companies for ROE %. This places Nova in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 4.55. Nova's value of 20.60% is 352.7% above this benchmark. Historically, Nova's own ROE % has ranged from 5.74 to 26.44 over the past decade. While the company's 10-year median is 21.67 vs. the industry median of 4.55, Nova has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,002 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nova's current ROE % of 20.60% is 352.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nova and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nova's current ROE % is 20.60%, which is near median its own 10-year median of 21.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova stock overvalued right now?
Based on GuruFocus' analysis, Nova (FRA:NMR) is currently considered Significantly Overvalued. The stock's GF Value™ is €268.91, compared to a current price of €427.00 — trading 58.8% above its estimated fair value. The current ROE % is 20.60%, which is near median its 10-year median of 21.67 and 352.7% above the Semiconductors industry median of 4.55. Nova's overall GF Score™ is 94/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Nova (FRA:NMR), the current ROE % is 20.60% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nova (FRA:NMR) Overvalued in 2026?
Based on GuruFocus' analysis, Nova stock appears to be overvalued.
The current stock price of €427.00 is trading 58.8% above its estimated GF Value™ of €268.91.
GuruFocus considers Nova to be Significantly Overvalued.
Key valuation signals for FRA:NMR:
ROE %: 20.60% (near median its 10-year median of 21.67)
GF Value™: €268.91 vs. price of €427.00 (58.8% above fair value)
Industry Position: 352.7% above the Semiconductors median (#117 of 1002)
No single metric tells the full story. See the FRA:NMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova Ltd is a provider of metrology and process control solutions used in semiconductor manufacturing. The company provides high-performance metrology solutions across the semiconductor fabrication lifecycle and develops differentiated inline metrology solutions deployed by a broad range of customers, including integrated circuit manufacturers. Its portfolio combines high-precision hardware and software, enabling customers to improve device performance, enhance yields, and accelerate time to market. Its products include Dimensional Metrology, Materials Metrology, Chemical Metrology, and Software Solutions. The company operates in China, Taiwan, R.O.C., the United States and other regions, with maximum revenue coming from China.
94GF Score
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