LSE:CML

Stock Analysis Report

Executive Summary

CML Microsystems Plc, through its subsidiaries, designs, manufactures, and markets a range of semiconductor products for use in communications and data storage industries in Europe, the Far East, the Americas, and internationally.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has CML Microsystems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CML's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.2%

CML

24.7%

GB Semiconductor

5.9%

GB Market


1 Year Return

-19.0%

CML

-61.0%

GB Semiconductor

-22.7%

GB Market

Return vs Industry: CML exceeded the UK Semiconductor industry which returned -56.6% over the past year.

Return vs Market: CML matched the UK Market which returned -18.8% over the past year.


Shareholder returns

CMLIndustryMarket
7 Day9.2%24.7%5.9%
30 Day-32.9%-40.7%-23.1%
90 Day-36.0%-41.1%-28.1%
1 Year-16.9%-19.0%-59.4%-61.0%-18.6%-22.7%
3 Year-45.2%-48.3%-57.2%-59.2%-13.4%-24.7%
5 Year-26.1%-33.0%-56.5%-58.0%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CML Microsystems undervalued compared to its fair value and its price relative to the market?

24.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CML (£2.26) is trading above our estimate of fair value (£0.94)

Significantly Below Fair Value: CML is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CML is poor value based on its PE Ratio (24.8x) compared to the Semiconductor industry average (23x).

PE vs Market: CML is poor value based on its PE Ratio (24.8x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CML's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CML is overvalued based on its PB Ratio (0.9x) compared to the GB Semiconductor industry average (0.8x).


Next Steps

Future Growth

How is CML Microsystems forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.4%

Forecasted Semiconductors industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CML Microsystems has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CML Microsystems performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CML has high quality earnings.

Growing Profit Margin: CML's current net profit margins (6%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: CML's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: CML's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CML had negative earnings growth (-64%) over the past year, making it difficult to compare to the Semiconductor industry average (-24.1%).


Return on Equity

High ROE: CML's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is CML Microsystems's financial position?


Financial Position Analysis

Short Term Liabilities: CML's short term assets (£18.6M) exceed its short term liabilities (£4.0M).

Long Term Liabilities: CML's short term assets (£18.6M) exceed its long term liabilities (£8.7M).


Debt to Equity History and Analysis

Debt Level: CML is debt free.

Reducing Debt: CML had no debt 5 years ago.

Debt Coverage: CML has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CML has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CML has a low level of unsold assets or inventory.

Debt Coverage by Assets: CML's debt is not covered by short term assets (assets are -1.6766000692774E+17x debt).


Next Steps

Dividend

What is CML Microsystems's current dividend yield, its reliability and sustainability?

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CML's dividend (3.45%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: CML's dividend (3.45%) is low compared to the top 25% of dividend payers in the UK market (7.27%).


Stability and Growth of Payments

Stable Dividend: CML has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CML's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.5%), CML's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Chris Gurry (55yo)

12.42s

Tenure

UK£314,000

Compensation

Mr. Christopher Arthur Gurry, also known as Chris, has been the Group Managing Director of CML Microsystems plc since October 1, 2007. Mr. Gurry served as a Joint Managing Director at CML Microsystems plc  ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD389.75K) is about average for companies of similar size in the UK market ($USD330.32K).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nigel Clark
Group Non-Executive Chairman & Financial Director5.17yrsUK£70.00k0.14% £55.6k
Christopher Gurry
Group MD & Director12.42yrsUK£314.00k5.3% £2.1m
Hugh Rudden
Group Sales & Marketing Director and Director5.75yrsUK£200.00kno data
Mike Gurry
Senior Vice President - Group Operations & Logisticsno datano data5.6% £2.2m
Peter Berns
Managing Director - Hyperstone8.17yrsno datano data
Zhongming Shi
Managing Director - Sicommno datano datano data
Mark Gunyuzlu
Senior Vice President - Americasno datano datano data
Mark McCabe
Managing Director of CML Microcircuitsno datano datano data

7.0yrs

Average Tenure

59yo

Average Age

Experienced Management: CML's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nigel Clark
Group Non-Executive Chairman & Financial Director5.17yrsUK£70.00k0.14% £55.6k
Christopher Gurry
Group MD & Director12.42yrsUK£314.00k5.3% £2.1m
Hugh Rudden
Group Sales & Marketing Director and Director5.75yrsUK£200.00kno data
Jim Lindop
Non-Executive Director6.92yrsUK£24.00kno data
Geoff Barnes
Non-Executive Director2.92yrsUK£26.00k0.070% £27.1k

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: CML's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CML Microsystems plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CML Microsystems plc
  • Ticker: CML
  • Exchange: LSE
  • Founded: 1968
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: UK£38.768m
  • Shares outstanding: 17.15m
  • Website: https://www.cmlmicroplc.com

Number of Employees


Location

  • CML Microsystems plc
  • Oval Park
  • Langford
  • Maldon
  • Essex
  • CM9 6WG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMLLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
92MBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

CML Microsystems Plc, through its subsidiaries, designs, manufactures, and markets a range of semiconductor products for use in communications and data storage industries in Europe, the Far East, the Americas, and internationally. It primarily offers integrated circuits. The company provides its products for industrial flash memory cards, solid state drives, and embedded storage products; and professional and industrial voice and/or data communications products. It sells its products through a network of distributors and representatives. The company serves communications equipment providers and industrial product manufacturers. CML Microsystems Plc was founded in 1968 and is headquartered in Maldon, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 20:44
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.