NasdaqGS:CCMP

Stock Analysis Report

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

Acceptable track record with limited growth.


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

2.5%

CCMP

-0.9%

US Semiconductor

0.07%

US Market


1 Year Return

55.5%

CCMP

23.5%

US Semiconductor

8.9%

US Market

Return vs Industry: CCMP exceeded the US Semiconductor industry which returned 23.5% over the past year.

Return vs Market: CCMP exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

CCMPIndustryMarket
7 Day2.5%-0.9%0.07%
30 Day1.4%1.9%-0.3%
90 Day19.8%-1.3%-1.6%
1 Year57.8%55.5%26.0%23.5%11.3%8.9%
3 Year190.9%179.7%80.4%69.8%46.3%36.8%
5 Year218.0%202.2%129.7%106.0%62.1%44.3%

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

Valuation

Is Cabot Microelectronics undervalued compared to its fair value and its price relative to the market?

37.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCMP ($147.15) is trading above our estimate of fair value ($92.16)

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


Price To Earnings Ratio

PE vs Industry: CCMP is poor value based on its PE Ratio (37.9x) compared to the Semiconductor industry average (27.5x).

PE vs Market: CCMP is poor value based on its PE Ratio (37.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CCMP is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CCMP is overvalued based on its PB Ratio (4.2x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

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

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCMP's forecast earnings growth (18.9% per year) is above the savings rate (2.7%).

Earnings vs Market: CCMP's earnings (18.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: CCMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: CCMP's revenue (6.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CCMP's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CCMP's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: CCMP's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: CCMP's earnings growth over the past year (22%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: CCMP earnings growth over the past year (22%) exceeded the Semiconductor industry -6.2%.


Return on Equity

High ROE: CCMP's Return on Equity (10.5%) is considered low.


Return on Assets

ROA vs Industry: CCMP's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: CCMP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cabot Microelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: CCMP's short term assets ($475.0M) exceeds its short term liabilities ($155.3M)

Long Term Liabilities: CCMP's short term assets (475.0M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: CCMP's debt to equity ratio (93.6%) is considered high

Reducing Debt: CCMP's debt to equity ratio has increased from 48% to 93.6% over the past 5 years.

Debt Coverage: CCMP's debt is not well covered by operating cash flow (19%).

Interest Coverage: CCMP's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CCMP's 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?

1.14%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CCMP's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CCMP's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, CCMP has been paying a dividend for less than 10 years.

Growing Dividend: CCMP's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.2%), CCMP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCMP's dividends in 3 years are forecast to be well covered by earnings (21% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

David Li (46yo)

4.8yrs

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

Compensation vs. Market: David's total compensation ($USD5.48M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

49yo

Average Age

Experienced Management: CCMP's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: CCMP's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: CCMP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$357,97613 Aug 19
Daniel Woodland
EntityIndividual
Role
Senior Key Executive
VP & President of Electronic Materials
Shares3,137
Max PriceUS$114.11
SellUS$324,84212 Jun 19
Barbara Klein
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$108.28
SellUS$39,45122 Feb 19
Jeffrey Dysard
EntityIndividual
Role
Senior Key Executive
VP and President of Performance Materials
Shares377.45
Max PriceUS$104.52
SellUS$522,64713 Dec 18
Ananth Naman
EntityIndividual
Role
Chief Technology Officer
VP of Asia Pacific Region & CTO
Shares5,438.29
Max PriceUS$97.10
SellUS$145,55510 Dec 18
Ananth Naman
EntityIndividual
Role
Chief Technology Officer
VP of Asia Pacific Region & CTO
Shares1,500
Max PriceUS$97.04

Ownership Breakdown


Management Team

  • H. Bernstein (59yo)

    VP, Secretary & General Counsel

    • Tenure: 19.2yrs
    • Compensation: US$1.59m
  • David Li (46yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$5.48m
  • Thomas Roman (58yo)

    Principal Accounting Officer & Corporate Controller

    • Tenure: 15.7yrs
  • Yumiko Damashek (63yo)

    Vice President

    • Tenure: 0yrs
  • Eleanor Thorp (45yo)

    Vice President of Human Resources

    • Tenure: 1.1yrs
  • Ananth Naman (49yo)

    VP of Asia Pacific Region & CTO

    • Tenure: 4.8yrs
    • Compensation: US$1.55m
  • Scott Beamer (48yo)

    VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$2.79m
  • Daniel Woodland (49yo)

    VP & President of Electronic Materials

    • Tenure: 2yrs
    • Compensation: US$1.81m
  • Colleen Mumford

    Vice President of Communications & Marketing

    • Tenure: 0.08yrs
  • Jeffrey Dysard

    VP and President of Performance Materials

    • Tenure: 0.8yrs

Board Members

  • Rick Hill (67yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$310.37k
  • Bill Noglows (61yo)

    Chairman of the Board

    • Tenure: 15.9yrs
    • Compensation: US$335.37k
  • Barb Klein (64yo)

    Director

    • Tenure: 11.5yrs
    • Compensation: US$310.37k
  • Geoff Wild (63yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$285.37k
  • Paul Reilly (62yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$285.37k
  • David Li (46yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$5.48m
  • Susan Whitney (69yo)

    Director

    • Tenure: 4.5yrs
    • 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: CCMP
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$4.272b
  • 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 Analysis2019/10/22 23:32
End of Day Share Price2019/10/22 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.