Cabot Microelectronics Corporation, together with its subsidiaries, provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers worldwide.
+ 1 more risk
Mediocre balance sheet and slightly overvalued.
Share Price & News
How has Cabot Microelectronics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CCMP's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CCMP underperformed the US Semiconductor industry which returned -1.2% over the past year.
Return vs Market: CCMP underperformed the US Market which returned -14.9% over the past year.
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
1 day ago | Simply Wall StHow Does Cabot Microelectronics's (NASDAQ:CCMP) P/E Compare To Its Industry, After The Share Price Drop?
1 week ago | Simply Wall StIs Cabot Microelectronics Corporation (NASDAQ:CCMP) Overpaying Its CEO?
2 weeks ago | Simply Wall StCabot Microelectronics Corporation (NASDAQ:CCMP) Is About To Go Ex-Dividend, And It Pays A 1.7% Yield
Is Cabot Microelectronics undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CCMP ($100.17) is trading below our estimate of fair value ($138.41)
Significantly Below Fair Value: CCMP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CCMP is poor value based on its PE Ratio (45.3x) compared to the Semiconductor industry average (25.4x).
PE vs Market: CCMP is poor value based on its PE Ratio (45.3x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CCMP's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CCMP is overvalued based on its PB Ratio (2.8x) compared to the US Semiconductor industry average (2.2x).
How is Cabot Microelectronics forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if CCMP's forecast earnings growth is above the savings rate (1.7%).
Earnings vs Market: Insufficient data to determine if CCMP's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CCMP's revenue is expected to decline over the next 3 years (-2.5% per year).
High Growth Revenue: CCMP's revenue is forecast to decline over the next 3 years (-2.5% 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
How has Cabot Microelectronics performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CCMP has a large one-off loss of $91.5M impacting its December 31 2019 financial results.
Growing Profit Margin: CCMP's current net profit margins (5.9%) are lower than last year (18.8%).
Past Earnings Growth Analysis
Earnings Trend: CCMP's earnings have grown by 12% per year over the past 5 years.
Accelerating Growth: CCMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CCMP had negative earnings growth (-49.1%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).
Return on Equity
High ROE: CCMP's Return on Equity (6.2%) is considered low.
How is Cabot Microelectronics's financial position?
Financial Position Analysis
Short Term Liabilities: CCMP's short term assets ($526.8M) exceed its short term liabilities ($158.2M).
Long Term Liabilities: CCMP's short term assets ($526.8M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: CCMP's debt to equity ratio (92.8%) is considered high.
Reducing Debt: CCMP's debt to equity ratio has increased from 44.5% to 92.8% over the past 5 years.
Debt Coverage: CCMP's debt is well covered by operating cash flow (21.9%).
Interest Coverage: CCMP's interest payments on its debt are well covered by EBIT (4.9x coverage).
Inventory Level: CCMP has a high level of physical assets or inventory.
Debt Coverage by Assets: CCMP's debt is not covered by short term assets (assets are 0.6x debt).
What is Cabot Microelectronics's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CCMP's dividend (1.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.04%).
High Dividend: CCMP's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (5.7%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CCMP has been paying a dividend for less than 10 years.
Growing Dividend: CCMP's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (75.9%), CCMP's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CCMP's dividends in 3 years are forecast to be well covered by earnings (24.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Li (46yo)
Mr. David H. Li has been the Chief Executive Officer and President of Cabot Microelectronics Corporation since January 01, 2015. Mr. Li served as the Vice President of Asia Pacific Region at Cabot Microele ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD4.71M) is about average for companies of similar size in the US market ($USD5.63M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
|VP & CFO||2.25yrs||US$1.58m||0.0083% $241.7k|
|VP, Secretary & General Counsel||19.67yrs||US$1.44m||0.13% $3.7m|
|VP & President of Electronic Materials||2.5yrs||US$1.65m||0.029% $840.5k|
|VP & President of Performance Materials||1.25yrs||US$1.19m||0.0042% $122.0k|
|Principal Accounting Officer & Corporate Controller||16.17yrs||no data||0.023% $669.9k|
|Vice President of Communications & Marketing||0.58yr||no data||0.0055% $160.7k|
|Vice President of Human Resources||1.58yrs||no data||0.0031% $90.4k|
|Vice President||no data||no data||no data|
Experienced Management: CCMP's management team is considered experienced (2.4 years average tenure).
|Independent Director||7.83yrs||US$297.85k||0.018% $527.1k|
|Independent Chairman of the Board||16.42yrs||US$322.85k||0.25% $7.2m|
|Independent Director||12yrs||US$297.85k||0.098% $2.9m|
|Independent Director||4.58yrs||US$272.85k||0.031% $902.5k|
|Independent Director||3.08yrs||US$272.85k||0.010% $294.1k|
|Independent Director||5yrs||US$297.85k||0.031% $902.5k|
Experienced Board: CCMP's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CCMP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.9%.
Cabot Microelectronics Corporation's company bio, employee growth, exchange listings and data sources
- Name: Cabot Microelectronics Corporation
- Ticker: CCMP
- Exchange: NasdaqGS
- Founded: 1999
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$2.927b
- Shares outstanding: 29.22m
- Website: https://www.cabotcmp.com
Number of Employees
- Cabot Microelectronics Corporation
- 870 North Commons Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CCMP||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Apr 2000|
|CTD||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Apr 2000|
|CTD||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||Apr 2000|
Cabot Microelectronics Corporation, together with its subsidiaries, provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers worldwide. The Electronic Materials segment provides CMP slurries, which are liquid solutions composed of high-purity deionized water, proprietary chemical additives, and engineered abrasives that chemically and mechanically interact with the surface material of the IC device at an atomic level; and CMP pads that are engineered polymeric materials designed to distribute and transport the slurry to the surface of the wafer and distribute it evenly across the wafer. The company’s CMP slurries are used for polishing various materials that conduct electrical signals, including tungsten, copper, tantalum, and aluminum; and various materials that are used in the production of rigid disks and magnetic heads for hard disk drives, as well as used in the dielectric insulating materials that separate conductive layers within logic and memory IC devices. This segment also designs and produces precision polishing and metrology systems to attain near-perfect shape and surface finish on various optical components, such as mirrors, lenses, and prisms. In addition, this segment offers sulfuric, phosphoric, nitric, and hydrofluoric acids, as well as ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents, and various blends of chemicals. The Performance Materials segment provides polymer-based drag-reducing agents for light, medium, and heavy crude oil transmission; wood treatment products, such as solid blocks and concentrated solutions; and precision polishing and metrology systems for advanced optics applications. This segment also provides MR polishing fluids, consumables, and spare and replacement parts, as well as optical polishing services and other customer support services. Cabot Microelectronics Corporation was founded in 1999 and is headquartered in Aurora, Illinois.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/05 00:47|
|End of Day Share Price||2020/04/03 00:00|
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.