CCMP

CMC MaterialsNasdaqGS:CCMP Stock Report

Market Cap

US$3.9b

7D

-0.2%

1Y

-9.7%

Updated

16 Sep, 2021

Data

Company Financials +
CCMP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends2/6

CCMP Overview

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.

CMC Materials Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CMC Materials
Historical stock prices
Current Share PriceUS$132.32
52 Week HighUS$119.19
52 Week LowUS$198.61
Beta1.1
1 Month Change8.28%
3 Month Change-11.74%
1 Year Change-9.68%
3 Year Change24.85%
5 Year Change152.71%
Change since IPO431.94%

Recent News & Updates

Jul 26

A Big Drop Does Not Automatically Make CMC Materials A Bargain

The latest quarterly numbers from CCMP were a big letdown, causing it to lose all its gains for the year and then some. CCMP is still setting quarterly records, but its performance overall is underwhelming when everything is considered. CCMP is expected to benefit from increased production, but that could lead to other challenges down the road. Some see CCMP’s lower price as an opportunity to get in, but others may want to question if they’re really getting a bargain.

Jul 08
A Look At The Intrinsic Value Of CMC Materials, Inc. (NASDAQ:CCMP)

A Look At The Intrinsic Value Of CMC Materials, Inc. (NASDAQ:CCMP)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of CMC Materials, Inc...

Shareholder Returns

CCMPUS SemiconductorUS Market
7D-0.2%2.0%-0.6%
1Y-9.7%54.6%33.7%

Return vs Industry: CCMP underperformed the US Semiconductor industry which returned 51.6% over the past year.

Return vs Market: CCMP underperformed the US Market which returned 30.7% over the past year.

Price Volatility

Is CCMP's price volatile compared to industry and market?
CCMP volatility
CCMP Beta1.1
Industry Beta1.23
Market Beta1

Stable Share Price: CCMP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CCMP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19992,082David Lihttps://www.cmcmaterials.com

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. The company operates through two segments, Electronic Materials and Performance Materials. The Electronic Materials segment provides chemical mechanical planarization (CMP) are used for polishing various materials used in IC devices, including tungsten, dielectric materials, copper, tantalum, and aluminum; and various materials that are used in the production of disk substrates and magnetic heads for hard disk drives; and CMP pads which are used in conjunction with slurries in the CMP process.

CMC Materials Fundamentals Summary

How do CMC Materials's earnings and revenue compare to its market cap?
CCMP fundamental statistics
Market CapUS$3.87b
Earnings (TTM)-US$47.78m
Revenue (TTM)US$1.16b

3.3x

P/S Ratio

-80.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CCMP income statement (TTM)
RevenueUS$1.16b
Cost of RevenueUS$668.12m
Gross ProfitUS$493.99m
ExpensesUS$541.77m
Earnings-US$47.78m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.64
Gross Margin42.51%
Net Profit Margin-4.11%
Debt/Equity Ratio94.2%

How did CCMP perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

-110%

Payout Ratio

Valuation

Is CMC Materials undervalued compared to its fair value and its price relative to the market?

3.94x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CCMP ($132.32) is trading above our estimate of fair value ($74.25)

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


Price To Earnings Ratio

PE vs Industry: CCMP is unprofitable, so we can't compare its PE Ratio to the US Semiconductor industry average.

PE vs Market: CCMP is unprofitable, so we can't compare its PE Ratio to the US market.


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 good value based on its PB Ratio (3.9x) compared to the US Semiconductor industry average (4.6x).


Future Growth

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

117.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCMP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CCMP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CCMP's is expected to become profitable in the next 3 years.

Revenue vs Market: CCMP's revenue (4.6% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: CCMP's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCMP's Return on Equity is forecast to be low in 3 years time (12.3%).


Past Performance

How has CMC Materials performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCMP is currently unprofitable.

Growing Profit Margin: CCMP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CCMP is unprofitable, and losses have increased over the past 5 years at a rate of 6.7% per year.

Accelerating Growth: Unable to compare CCMP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CCMP is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (70.4%).


Return on Equity

High ROE: CCMP has a negative Return on Equity (-4.87%), as it is currently unprofitable.


Financial Health

How is CMC Materials's financial position?


Financial Position Analysis

Short Term Liabilities: CCMP's short term assets ($593.9M) exceed its short term liabilities ($195.9M).

Long Term Liabilities: CCMP's short term assets ($593.9M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: CCMP's debt to equity ratio (94.2%) is considered high.

Reducing Debt: CCMP's debt to equity ratio has increased from 34.5% to 94.2% over the past 5 years.

Debt Coverage: CCMP's debt is well covered by operating cash flow (28.4%).

Interest Coverage: CCMP's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

What is CMC Materials's current dividend yield, its reliability and sustainability?

1.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCMP's dividend (1.39%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: CCMP's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: CCMP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CCMP's dividends in 3 years are forecast to be well covered by earnings (23.6% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

David Li (48 yo)

6.67yrs

Tenure

US$5,151,401

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 ($USD5.15M) is about average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: CCMP's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: CCMP's board of directors are considered experienced (6.5 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 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$3.867b
  • Shares outstanding: 29.22m
  • Website: https://www.cmcmaterials.com

Number of Employees


Location

  • CMC Materials, Inc.
  • 870 North Commons Drive
  • Aurora
  • Illinois
  • 60504
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 05:06
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


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.