DB:CTD

Stock Analysis Report

Cabot Microelectronics

Executive Summary

Cabot Microelectronics Corporation, together with its subsidiaries, develops, manufactures, and sells polishing slurries and pads used in the manufacture of advanced integrated circuit (IC) devices in the semiconductor industry in chemical mechanical planarization (CMP) process.

Snowflake

Fundamentals

Reasonable growth potential with questionable track record.


Similar Companies

Share Price & News

How has Cabot Microelectronics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

DB:CTD

2.9%

DE Semiconductor

2.6%

DE Market


1 Year Return

15.2%

DB:CTD

-21.7%

DE Semiconductor

-9.6%

DE Market

CTD outperformed the Semiconductor industry which returned -23.2% over the past year.

CTD outperformed the Market in Germany which returned -10.8% over the past year.


Share holder returns

CTDIndustryMarket
7 Day4.8%2.9%2.6%
30 Day8.4%-4.8%-3.0%
90 Day20.6%-0.8%-1.4%
1 Year17.0%15.2%-20.3%-21.7%-6.8%-9.6%
3 Year154.0%144.2%17.3%13.6%11.0%1.5%
5 Year253.8%237.0%71.5%62.5%25.6%8.2%

Price Volatility Vs. Market

How volatile is Cabot Microelectronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cabot Microelectronics undervalued based on future cash flows and its price relative to the stock market?

31.51x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cabot Microelectronics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cabot Microelectronics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cabot Microelectronics is overvalued based on earnings compared to the DE Semiconductor industry average.

Cabot Microelectronics is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Cabot Microelectronics, we can't assess if its growth is good value.


Price Based on Value of Assets

Cabot Microelectronics is overvalued based on assets compared to the DE Semiconductor industry average.


Next Steps

Future Growth

How is Cabot Microelectronics expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cabot Microelectronics's revenue is expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).

Cabot Microelectronics's earnings are expected to grow significantly at over 20% yearly.

Cabot Microelectronics's revenue growth is expected to exceed the Germany market average.

Cabot Microelectronics's earnings growth is expected to exceed the Germany market average.

Cabot Microelectronics's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Cabot Microelectronics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Cabot Microelectronics performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cabot Microelectronics's year on year earnings growth rate has been positive over the past 5 years.

Cabot Microelectronics's 1-year earnings growth exceeds its 5-year average (22% vs 18.7%)

Cabot Microelectronics's earnings growth has not exceeded the DE Semiconductor industry average in the past year (22% vs 22.2%).


Return on Equity

Cabot Microelectronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cabot Microelectronics used its assets less efficiently than the DE Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Cabot Microelectronics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cabot Microelectronics's financial position?


Financial Position Analysis

Cabot Microelectronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cabot Microelectronics's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cabot Microelectronics's level of debt (93.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (48% vs 93.6% today).

Debt is not well covered by operating cash flow (19%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Cabot Microelectronics's current dividend yield, its reliability and sustainability?

1.47%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cabot Microelectronics's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.55%).

Cabot Microelectronics's dividend is below the markets top 25% of dividend payers in Germany (4.22%).

Whilst dividend payments have been stable, Cabot Microelectronics has been paying a dividend for less than 10 years.

Dividend payments have increased, but Cabot Microelectronics only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

What is the CEO of Cabot Microelectronics's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

David Li (46yo)

4.6yrs

Tenure

US$5,481,551

Compensation

Mr. David H. Li has been the Chief Executive Officer and President of Cabot Microelectronics Corporation since January 01, 2015. Mr. Li served as the Vice President of Asia Pacific Region at Cabot Microele ...


CEO Compensation Analysis

David's remuneration is higher than average for companies of similar size in Germany.

David's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

49yo

Average Age

The tenure for the Cabot Microelectronics management team is about average.


Board Age and Tenure

4.6yrs

Average Tenure

63yo

Average Age

The tenure for the Cabot Microelectronics board of directors is about average.


Insider Trading

Cabot Microelectronics individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$318,92113 Aug 19
Daniel Woodland
EntityIndividual
Role
Senior Key Executive
VP & President of Electronic Materials
Shares3,137
Max PriceUS$101.66
SellUS$287,16112 Jun 19
Barbara Klein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$95.72
SellUS$34,80822 Feb 19
Jeffrey Dysard
EntityIndividual
Role
Senior Key Executive
VP and President of Performance Materials
Shares377.45
Max PriceUS$92.22
SellUS$461,55013 Dec 18
Ananth Naman
EntityIndividual
Role
Chief Technology Officer
VP of Asia Pacific Region & CTO
Shares5,438.29
Max PriceUS$85.75
SellUS$128,04510 Dec 18
Ananth Naman
EntityIndividual
Role
Chief Technology Officer
VP of Asia Pacific Region & CTO
Shares1,500
Max PriceUS$85.36

Ownership Breakdown


Management Team

  • H. Bernstein (59yo)

    VP, Secretary & General Counsel

    • Tenure: 19.0yrs
    • Compensation: US$1.59m
  • David Li (46yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$5.48m
  • Thomas Roman (58yo)

    Principal Accounting Officer & Corporate Controller

    • Tenure: 15.5yrs
  • Yumiko Damashek (63yo)

    Vice President

    • Tenure: 0.0yrs
  • Eleanor Thorp (45yo)

    Vice President of Human Resources

    • Tenure: 0.9yrs
  • Ananth Naman (49yo)

    VP of Asia Pacific Region & CTO

    • Tenure: 4.6yrs
    • Compensation: US$1.55m
  • Scott Beamer (48yo)

    VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$2.79m
  • Daniel Woodland (49yo)

    VP & President of Electronic Materials

    • Tenure: 1.8yrs
    • Compensation: US$1.81m
  • Colleen Mumford

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Jeffrey Dysard

    VP and President of Performance Materials

    • Tenure: 0.6yrs

Board Members

  • Rick Hill (67yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: US$310.37k
  • Bill Noglows (61yo)

    Chairman of the Board

    • Tenure: 15.8yrs
    • Compensation: US$335.37k
  • Barb Klein (64yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$310.37k
  • Geoff Wild (63yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$285.37k
  • Paul Reilly (62yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$285.37k
  • David Li (46yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$5.48m
  • Susan Whitney (69yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$310.37k

Company Information

Cabot Microelectronics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cabot Microelectronics Corporation
  • Ticker: CTD
  • Exchange: DB
  • Founded: 1999
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$3.554b
  • Listing Market Cap: US$3.203b
  • Shares outstanding: 29.03m
  • Website: https://www.cabotcmp.com

Number of Employees


Location

  • Cabot Microelectronics Corporation
  • 870 North Commons Drive
  • Aurora
  • Illinois
  • 60504
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCMPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2000
CTDDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2000

Biography

Cabot Microelectronics Corporation, together with its subsidiaries, develops, manufactures, and sells polishing slurries and pads used in the manufacture of advanced integrated circuit (IC) devices in the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:48
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.