NasdaqGS:CCMP

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Executive Summary

Cabot Microelectronics Corporation, together with its subsidiaries, provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers worldwide. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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

Stable Share Price: CCMP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.1%

CCMP

-1.5%

US Semiconductor

-1.5%

US Market


1 Year Return

-3.9%

CCMP

35.4%

US Semiconductor

12.9%

US Market

Return vs Industry: CCMP underperformed the US Semiconductor industry which returned 35.4% over the past year.

Return vs Market: CCMP underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

CCMPIndustryMarket
7 Day-8.1%-1.5%-1.5%
30 Day-13.9%-2.0%-1.8%
90 Day2.4%7.7%6.6%
1 Year-2.5%-3.9%37.8%35.4%15.4%12.9%
3 Year88.7%81.4%84.8%75.2%39.6%30.2%
5 Year276.5%253.7%251.5%217.0%93.4%71.7%

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?

45.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCMP ($135.21) is trading above our estimate of fair value ($121.31)

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 (46x) compared to the US Semiconductor industry average (34.2x).

PE vs Market: CCMP is poor value based on its PE Ratio (46x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CCMP is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CCMP is overvalued based on its PB Ratio (3.8x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Cabot Microelectronics forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCMP's forecast earnings growth (36.1% per year) is above the savings rate (2.2%).

Earnings vs Market: CCMP's earnings (36.1% per year) are forecast to grow faster than the US market (23.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CCMP's revenue (3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CCMP's revenue (3% 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?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCMP has a large one-off loss of $101.1M impacting its June 30 2020 financial results.

Growing Profit Margin: CCMP's current net profit margins (7.6%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: CCMP's earnings have grown by 10.2% 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 (-19.8%) over the past year, making it difficult to compare to the Semiconductor industry average (7.5%).


Return on Equity

High ROE: CCMP's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Cabot Microelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: CCMP's short term assets ($678.9M) exceed its short term liabilities ($339.9M).

Long Term Liabilities: CCMP's short term assets ($678.9M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: CCMP's debt to equity ratio (109%) is considered high.

Reducing Debt: CCMP's debt to equity ratio has increased from 39.8% to 109% over the past 5 years.

Debt Coverage: CCMP's debt is well covered by operating cash flow (23.4%).

Interest Coverage: CCMP's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCMP's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: CCMP's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.5%), CCMP's dividend 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 (22.5% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

David Li (47 yo)

5.67yrs

Tenure

US$4,708,736

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 ($USD4.71M) is about average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Li
President5.67yrsUS$4.71m0.18%
$ 6.9m
Scott Beamer
VP & CFO2.67yrsUS$1.58m0.022%
$ 845.4k
H. Bernstein
VP, Secretary & General Counsel20.08yrsUS$1.44m0.13%
$ 5.0m
Daniel Woodland
VP & President of Electronic Materials2.92yrsUS$1.65m0.018%
$ 697.7k
Jeffrey Dysard
VP & President of Performance Materials1.67yrsUS$1.19m0.013%
$ 524.5k
Jeanette Press
Corporate Controller & Principal Accounting Officer0.25yrno datano data
Colleen Mumford
Vice President of Communications & Marketing1yrno data0.0055%
$ 216.9k
Eleanor Thorp
Vice President of Human Resources2yrsno data0.0033%
$ 129.6k
Yumiko Damashek
Vice Presidentno datano datano data

2.3yrs

Average Tenure

47yo

Average Age

Experienced Management: CCMP's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Li
President5.67yrsUS$4.71m0.18%
$ 6.9m
Richard Hill
Independent Director8.25yrsUS$297.85k0.018%
$ 711.5k
William Noglows
Independent Chairman of the Board16.83yrsUS$322.85k0.22%
$ 8.6m
Barbara Klein
Independent Director12.42yrsUS$297.85k0.081%
$ 3.2m
Geoffrey Wild
Independent Director5yrsUS$272.85k0.031%
$ 1.2m
Paul Reilly
Independent Director3.5yrsUS$272.85k0.010%
$ 396.8k
Susan Whitney
Independent Director5.42yrsUS$297.85k0.031%
$ 1.2m

5.7yrs

Average Tenure

64yo

Average Age

Experienced Board: CCMP's board of directors are considered experienced (5.7 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

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$3.929b
  • Shares outstanding: 29.06m
  • 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, provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers worldwide. The Electronic Mate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 06:05
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.