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
|Historical stock prices|
|Current Share Price||US$132.32|
|52 Week High||US$119.19|
|52 Week Low||US$198.61|
|1 Month Change||8.28%|
|3 Month Change||-11.74%|
|1 Year Change||-9.68%|
|3 Year Change||24.85%|
|5 Year Change||152.71%|
|Change since IPO||431.94%|
Recent News & Updates
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.
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...
|CCMP||US Semiconductor||US Market|
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.
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
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
|CCMP fundamental statistics|
Is CCMP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CCMP income statement (TTM)|
|Cost of Revenue||US$668.12m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-1.64|
|Net Profit Margin||-4.11%|
How did CCMP perform over the long term?See historical performance and comparison
1.4%Current Dividend Yield
Is CMC Materials undervalued compared to its fair value and its price relative to the market?
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).
How is CMC Materials forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has CMC Materials performed over the past 5 years?
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.
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 ($1.1B).
Debt to Equity History and Analysis
Debt Level: CCMP's debt to equity ratio (94.2%) is considered high.
Reducing Debt: CCMP's debt to equity ratio has increased from 34.5% to 94.2% over the past 5 years.
Debt Coverage: CCMP's debt is well covered by operating cash flow (28.4%).
Interest Coverage: CCMP's interest payments on its debt are well covered by EBIT (6x coverage).
What is CMC Materials's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CCMP's dividend (1.39%) is higher than the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: CCMP's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CCMP has been paying a dividend for less than 10 years.
Growing Dividend: CCMP's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: CCMP is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: CCMP's dividends in 3 years are forecast to be well covered by earnings (23.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Li (48 yo)
Mr. David H. Li has been the Chief Executive Officer and President of CMC Materials, Inc. (formerly known as Cabot Microelectronics Corporation) since January 01, 2015. Mr. Li served as the Vice President...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($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.
Experienced Management: CCMP's management team is considered experienced (3 years average tenure).
Experienced Board: CCMP's board of directors are considered experienced (6.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CMC Materials, Inc.'s employee growth, exchange listings and data sources
- 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
- CMC Materials, Inc.
- 870 North Commons Drive
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 05:06|
|End of Day Share Price||2021/09/15 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.