CMC Materials
Market Cap
US$4.5b
Last Updated
2020/11/24 23:35 UTC
Data Sources
Company Financials +
Executive Summary
CMC Materials, Inc., together with its subsidiaries, provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers in North America, Asia, Europe, the Middle East, Africa, and South America. More Details
Snowflake Analysis
Solid track record with mediocre balance sheet.
Similar Companies
Share Price & News
How has CMC Materials's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CCMP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CCMP's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
11.1%
CCMP
1.9%
US Semiconductor
1.8%
US Market
1 Year Return
13.7%
CCMP
46.2%
US Semiconductor
20.4%
US Market
Return vs Industry: CCMP underperformed the US Semiconductor industry which returned 46.2% over the past year.
Return vs Market: CCMP underperformed the US Market which returned 20.4% over the past year.
Shareholder returns
| CCMP | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.1% | 1.9% | 1.8% |
| 30 Day | 1.5% | 7.4% | 6.0% |
| 90 Day | -1.6% | 12.9% | 6.8% |
| 1 Year | 15.3%13.7% | 48.9%46.2% | 23.2%20.4% |
| 3 Year | 59.5%52.9% | 83.6%74.0% | 47.4%37.6% |
| 5 Year | 288.5%263.9% | 251.2%217.9% | 91.9%70.8% |
Long-Term Price Volatility Vs. Market
How volatile is CMC Materials's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Are Insiders Selling CMC Materials, Inc. (NASDAQ:CCMP) Stock?4 weeks ago | Simply Wall St
We Think CMC Materials (NASDAQ:CCMP) Can Stay On Top Of Its Debt1 month ago | Simply Wall St
Is There Now An Opportunity In CMC Materials, Inc. (NASDAQ:CCMP)?Valuation
Is CMC Materials undervalued compared to its fair value and its price relative to the market?
31.5x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CCMP ($154.44) is trading above our estimate of fair value ($101.37)
Significantly Below Fair Value: CCMP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CCMP is good value based on its PE Ratio (31.5x) compared to the US Semiconductor industry average (36.8x).
PE vs Market: CCMP is poor value based on its PE Ratio (31.5x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: CCMP is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: CCMP is overvalued based on its PB Ratio (4.2x) compared to the US Semiconductor industry average (3.4x).
Next Steps
Future Growth
How is CMC Materials forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
18.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CCMP's forecast earnings growth (18.1% per year) is above the savings rate (2.2%).
Earnings vs Market: CCMP's earnings (18.1% per year) are forecast to grow slower than the US market (22.1% per year).
High Growth Earnings: CCMP's earnings are forecast to grow, but not significantly.
Revenue vs Market: CCMP's revenue (2.6% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: CCMP's revenue (2.6% 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 CMC Materials performed over the past 5 years?
13.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CCMP has high quality earnings.
Growing Profit Margin: CCMP's current net profit margins (12.8%) are higher than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: CCMP's earnings have grown by 13% per year over the past 5 years.
Accelerating Growth: CCMP's earnings growth over the past year (261.7%) exceeds its 5-year average (13% per year).
Earnings vs Industry: CCMP earnings growth over the past year (261.7%) exceeded the Semiconductor industry 22.8%.
Return on Equity
High ROE: CCMP's Return on Equity (13.3%) is considered low.
Next Steps
Financial Health
How is CMC Materials's financial position?
Financial Position Analysis
Short Term Liabilities: CCMP's short term assets ($577.1M) exceed its short term liabilities ($181.3M).
Long Term Liabilities: CCMP's short term assets ($577.1M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: CCMP's debt to equity ratio (89.3%) is considered high.
Reducing Debt: CCMP's debt to equity ratio has increased from 38.3% to 89.3% over the past 5 years.
Debt Coverage: CCMP's debt is well covered by operating cash flow (29.9%).
Interest Coverage: CCMP's interest payments on its debt are well covered by EBIT (5.5x coverage).
Balance Sheet
Next Steps
Dividend
What is CMC Materials's current dividend yield, its reliability and sustainability?
1.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CCMP's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).
High Dividend: CCMP's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 reasonably low payout ratio (35.5%), 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 (20.7% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
David Li (47 yo)
5.83yrs
Tenure
US$4,708,736
Compensation
Mr. David H. Li has been the Chief Executive Officer and President of CMC Materials, Inc. (formerly known as Cabot Microelectronics Corporation) since January 01, 2015. Mr. Li served as the Vice President ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD4.71M) is about average for companies of similar size in the US market ($USD5.17M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.83yrs | US$4.71m | 0.21% $ 9.4m | |
| VP & CFO | 2.83yrs | US$1.58m | 0.035% $ 1.6m | |
| VP, Secretary & General Counsel | 20.25yrs | US$1.44m | 0.13% $ 6.1m | |
| VP & President of Electronic Materials | 3.08yrs | US$1.65m | 0.030% $ 1.4m | |
| VP & President of Performance Materials | 1.83yrs | US$1.19m | 0.022% $ 966.5k | |
| Corporate Controller & Principal Accounting Officer | 0.42yr | no data | no data | |
| Vice President of Communications & Marketing | 1.17yrs | no data | 0.0055% $ 247.5k | |
| Vice President of Human Resources | 2.17yrs | no data | 0.0033% $ 147.8k | |
| Vice President | no data | no data | no data |
2.5yrs
Average Tenure
47yo
Average Age
Experienced Management: CCMP's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.83yrs | US$4.71m | 0.21% $ 9.4m | |
| Independent Director | 8.42yrs | US$297.85k | 0.018% $ 812.5k | |
| Independent Chairman of the Board | 17yrs | US$322.85k | 0.22% $ 9.9m | |
| Independent Director | 12.58yrs | US$297.85k | 0.081% $ 3.6m | |
| Independent Director | 5.17yrs | US$272.85k | 0.031% $ 1.4m | |
| Independent Director | 3.67yrs | US$272.85k | 0.010% $ 453.2k | |
| Independent Director | 5.58yrs | US$297.85k | 0.031% $ 1.4m |
5.8yrs
Average Tenure
64yo
Average Age
Experienced Board: CCMP'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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CMC Materials, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CMC Materials, Inc.
- Ticker: CCMP
- Exchange: NasdaqGS
- Founded: 1999
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$4.491b
- Shares outstanding: 29.08m
- Website: https://www.cmcmaterials.com
Number of Employees
Location
- CMC Materials, Inc.
- 870 North Commons Drive
- Aurora
- Illinois
- 60504
- United States
Listings
| 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 | BST (Boerse-Stuttgart) | Yes | Common Stock | DE | EUR | Apr 2000 |
Biography
CMC Materials, Inc., together with its subsidiaries, provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers in North America, Asia, Europe, the Middle Ea...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/24 23:35 |
| End of Day Share Price | 2020/11/24 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
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.