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Versum Materials

NYSE:VSM
Snowflake Description

Reasonable growth potential with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VSM
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Versum Materials, Inc. develops, manufactures, transports, and handles specialty materials for the semiconductor and display industries in the United States, Taiwan, South Korea, China, Europe, and rest of Asia. The last earnings update was 48 days ago. More info.


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VSM Share Price and Events
Price Volatility
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5yr Volatility vs Market
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Value

 Is Versum Materials undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Versum Materials to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Versum Materials.

NYSE:VSM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:VSM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.021 (1 + (1- 21%) (24.13%))
1.216
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.216 * 7.05%)
11.52%

Discounted Cash Flow Calculation for NYSE:VSM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Versum Materials is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:VSM DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 149.45 229.73 264.17 285.19 307.89
Source Analyst x4 Analyst x4 Analyst x3 Est @ 7.96% Est @ 7.96%
Present Value
Discounted (@ 11.52%)
134.01 184.71 190.45 184.37 178.47
Present value of next 5 years cash flows $872.00
NYSE:VSM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $307.89 × (1 + 2.95%) ÷ (11.52% – 2.95%)
$3,697.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $3,697.36 ÷ (1 + 11.52%)5
$2,143.24
NYSE:VSM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $872.00 + $2,143.24
$3,015.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,015.24 / 108.95
$27.68
NYSE:VSM Discount to Share Price
Calculation Result
Value per share (USD) From above. $27.68
Current discount Discount to share price of $37.52
= -1 x ($37.52 - $27.68) / $27.68
-35.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Versum Materials is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Versum Materials's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Versum Materials's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:VSM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $1.73
NYSE:VSM Share Price ** NYSE (2018-08-17) in USD $37.52
United States of America Semiconductor Industry PE Ratio Median Figure of 124 Publicly-Listed Semiconductor Companies 22.17x
United States of America Market PE Ratio Median Figure of 7,196 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Versum Materials.

NYSE:VSM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:VSM Share Price ÷ EPS (both in USD)

= 37.52 ÷ 1.73

21.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Versum Materials is good value based on earnings compared to the US Semiconductor industry average.
  • Versum Materials is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Versum Materials's expected growth come at a high price?
Raw Data
NYSE:VSM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
23.2%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 115 Publicly-Listed Semiconductor Companies 1.43x
United States of America Market PEG Ratio Median Figure of 5,692 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:VSM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.71x ÷ 23.2%

0.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Versum Materials is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Versum Materials's assets?
Raw Data
NYSE:VSM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $1.14
NYSE:VSM Share Price * NYSE (2018-08-17) in USD $37.52
United States of America Semiconductor Industry PB Ratio Median Figure of 181 Publicly-Listed Semiconductor Companies 2.52x
United States of America Market PB Ratio Median Figure of 11,745 Publicly-Listed Companies 1.86x
NYSE:VSM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:VSM Share Price ÷ Book Value per Share (both in USD)

= 37.52 ÷ 1.14

32.89x

* Primary Listing of Versum Materials.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Versum Materials is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Versum Materials's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Versum Materials has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Versum Materials expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Versum Materials expected to grow at an attractive rate?
  • Versum Materials's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Versum Materials's earnings growth is expected to exceed the United States of America market average.
  • Versum Materials's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:VSM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:VSM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 23.2%
NYSE:VSM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 5.9%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:VSM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:VSM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 1,740 1
2021-09-30 1,582 1
2020-09-30 1,511 344 303 5
2019-09-30 1,425 325 278 10
2018-09-30 1,349 254 211 9
NYSE:VSM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 1,316 211 188
2018-03-31 1,257 226 178
2017-12-31 1,187 212 161
2017-09-30 1,127 263 193
2017-06-30 1,081 248 194
2017-03-31 1,033 230 189
2016-12-31 995 256 198
2016-09-30 970 253 212
2016-06-30 954 272 210
2016-03-31 974 268 213
2015-12-31 998 300 204
2015-09-30 1,009 274 184

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Versum Materials's earnings are expected to grow significantly at over 20% yearly.
  • Versum Materials's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:VSM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Versum Materials Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VSM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30
2021-09-30
2020-09-30
2019-09-30 2.50 2.60 2.41 5.00
2018-09-30 2.00 2.35 1.84 5.00
NYSE:VSM Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 1.73
2018-03-31 1.63
2017-12-31 1.48
2017-09-30 1.78
2017-06-30 1.78
2017-03-31 1.74
2016-12-31 1.82
2016-09-30 1.95
2016-06-30 1.93
2016-03-31 1.95
2015-12-31 1.88
2015-09-30 1.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Versum Materials is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Versum Materials's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Versum Materials has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Versum Materials performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Versum Materials's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Versum Materials has delivered over 20% year on year earnings growth in the past 5 years.
  • Versum Materials's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Versum Materials's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.
Earnings and Revenue History
Versum Materials's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Versum Materials Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VSM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 1,316.00 188.10 138.60 48.20
2018-03-31 1,256.80 177.50 137.90 47.70
2017-12-31 1,186.90 160.80 130.80 47.50
2017-09-30 1,126.90 193.00 125.70 45.10
2017-06-30 1,080.80 193.60 127.40 44.60
2017-03-31 1,032.70 188.70 120.20 44.00
2016-12-31 995.40 197.60 116.40 43.30
2016-09-30 970.10 212.00 109.80 43.90
2016-06-30 954.10 210.00 103.20 44.10
2016-03-31 974.40 212.50 104.30 42.70
2015-12-31 997.85 204.00 105.90 42.05
2015-09-30 1,009.30 184.10 109.60 40.70
2014-09-30 942.50 123.60 109.50 38.40
2013-09-30 852.80 -80.60 113.90 34.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Versum Materials made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Versum Materials used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Versum Materials's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Versum Materials's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Versum Materials has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Versum Materials's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Versum Materials's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Versum Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Versum Materials's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Versum Materials's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Versum Materials Company Filings, last reported 1 month ago.

NYSE:VSM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 157.30 981.20 289.50
2018-03-31 127.00 983.00 254.40
2017-12-31 59.70 983.00 278.30
2017-09-30 24.60 984.30 271.40
2017-06-30 -9.70 985.00 244.50
2017-03-31 -61.70 986.30 175.80
2016-12-31 -134.20 989.00 178.70
2016-09-30 -103.40 986.10 105.60
2016-06-30 774.20 0.00 66.60
2016-03-31 747.20 1.70 22.70
2015-12-31 740.70 0.00 17.80
2015-09-30 740.70 0.00 17.80
2014-09-30 873.40 5.10 49.60
2013-09-30
  • Versum Materials's level of debt (623.8%) compared to net worth is high (greater than 40%).
  • Unable to establish if Versum Materials's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (21.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).
X
Financial health checks
We assess Versum Materials's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Versum Materials has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.64%
Current annual income from Versum Materials dividends. Estimated to be 0.62% next year.
If you bought $2,000 of Versum Materials shares you are expected to receive $13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Versum Materials's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Versum Materials's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:VSM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5595 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:VSM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30
2021-09-30
2020-09-30 0.24 3.00
2019-09-30 0.24 4.00
2018-09-30 0.22 3.00
NYSE:VSM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-08-01 0.240 0.636
2018-05-02 0.240 0.623
2018-01-30 0.200 0.538
2017-10-31 0.200 0.516
2017-07-27 0.200 0.534
2017-03-21 0.200 0.634

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Versum Materials is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Versum Materials is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Versum Materials's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Versum Materials's dividends as it is not paying a notable for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Versum Materials's dividends in 3 years as they are not expected to pay a notable for United States of America.
X
Income/ dividend checks
We assess Versum Materials's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Versum Materials afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Versum Materials has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Versum Materials's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Guillermo Novo, image provided by Google.
Guillermo Novo
COMPENSATION $8,152,446
AGE 56
CEO Bio

Mr. Guillermo Novo serves as Chief Executive Officer and President of Versum Materials, Inc. Mr. Novo has been Director of Bemis Company, Inc. since March 16, 2018. He served as an Executive Vice President of Materials Technology at Air Products and Chemicals, Inc. since 2015 until October 1, 2016. Mr. Novo served as Senior Vice President and General Manager of Electronics, Performance Materials, Strategy & Technology at Air Products and Chemicals, Inc. since September 14, 2012 until 2014. He was responsible for the Air Products’s Electronics and Performance Materials businesses, Technology organization and corporate strategy and marketing. He served as Business Group Vice President of Dow Coating Materials of The Dow Chemical Company from October 2010 to April 2012. Mr. Novo served as Vice President of Polyurethane business and Global Business Director of Dow Polyols at Dow Chemical Canada Inc. (Dow Chemical Canada ULC) since January 2010. He served as Vice President and Worldwide Director of Process Chemicals and Biocides since 2006. He served as Business Director of Process Chemicals & New Platforms of Rohm and Haas Company since 2007. In 1998, Mr. Novo was named a vice president at Rohm and Haas and in 2006 he became a corporate officer and one of five group executives on the corporate leadership team responsible for driving the overall strategy. Mr. Novo served as Vice President and Business Director of Consumer and Industrial Specialties of Rohm and Haas Company from 2002 to 2006. Through the years, he has held positions of increasing responsibility in Latin America including: Account Manager of Adhesives and Textiles/Non-wovens since 1987, Account Manager of Construction Products since 1989 and Sales Manager for the South Cone since 1990. Mr. Novo relocated to Rohm & Haas Co.'s headquarters in Philadelphia in 1993, where he served as Market Manager for Construction Products. Since 1996, he served as Country Manager for Rohm and Haas operations in Indonesia, where he assumed additional responsibilities for Specialty Polymers as Asia-Pacific Regional Business Manager and returned to Latin America in 1998 as Regional Director and also served as its Vice President and a Member of Leadership Council since 1999. He served as President of the United Way in Brazil (Associacao Caminhando Juntos) from 2000 to 2001. He has been a Director of Versum Materials, Inc. since October 01, 2016. He serves as a Director of the United Way of Southeast Pennsylvania. He served as Group Vice President for Dow Coating Materials. His qualifications Mr. Novo has over 30 years of experience in the specialty materials industry. He has a vast array of experience in commercial, marketing and management positions globally. Mr. Novo’s professional experiences will provide the Board with valuable leadership experience, familiarity with public company matters and experience with international operations. He began his career in 1986 with Rohm and Haas Company (which merged with Dow in 2009) and over the next 24 years progressed through a variety of commercial, marketing and general management positions, living in South America, the U.S., and Asia. Mr. Novo holds a BS Degree in Engineering from the University of Central Florida in 1984 and MBA from the University of Michigan in 1986.

CEO Compensation
  • Guillermo's compensation has increased by more than 20% in the past year.
  • Guillermo's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Versum Materials management team in years:

1.8
Average Tenure
57
Average Age
  • The average tenure for the Versum Materials management team is less than 2 years, this suggests a new team.
Management Team

Guillermo Novo

TITLE
President
COMPENSATION
$8M
AGE
56

George Bitto

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
59
TENURE
1.8 yrs

Patrick Loughlin

TITLE
Senior Vice President of Operations and Supply Chain
COMPENSATION
$1M
AGE
59
TENURE
1.8 yrs

Michael Valente

TITLE
Senior Vice President of Law & Human Resources
COMPENSATION
$3M
AGE
50

Ed Shober

TITLE
Senior Vice President of Materials
COMPENSATION
$2M
AGE
58
TENURE
1.5 yrs

Jessica Feather-Bowman

TITLE
VP, Controller & Principal Accounting Officer
AGE
43
TENURE
1.9 yrs

John Langan

TITLE
Senior VP & CTO
AGE
58
TENURE
1.7 yrs

Jeff White

TITLE
Senior Vice President of Delivery Systems and Services
AGE
50
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Versum Materials board of directors in years:

1.8
Average Tenure
62
Average Age
  • The average tenure for the Versum Materials board of directors is less than 3 years, this suggests a new board.
Board of Directors

Seifi Ghasemi

TITLE
Non-Executive Chairman
COMPENSATION
$250K
AGE
74
TENURE
1.9 yrs

Guillermo Novo

TITLE
President
COMPENSATION
$8M
AGE
56
TENURE
1.8 yrs

Jacques Croisetiere

TITLE
Independent Director
COMPENSATION
$220K
AGE
64
TENURE
1.8 yrs

Tom Riordan

TITLE
Independent Director
COMPENSATION
$215K
AGE
68
TENURE
1.8 yrs

Alejandro Wolff

TITLE
Lead Director
COMPENSATION
$210K
AGE
61
TENURE
1.3 yrs

Susan Schnabel

TITLE
Independent Director
COMPENSATION
$200K
AGE
56
TENURE
1.8 yrs

Yi Paik

TITLE
Independent Director
COMPENSATION
$200K
AGE
62
TENURE
1.8 yrs
Recent Insider Trading
  • More shares have been bought than sold by Versum Materials insiders in the past 3 months.
Who owns this company?
X
Management checks
We assess Versum Materials's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Versum Materials has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What Does Versum Materials Inc's (NYSE:VSM) PE Ratio Tell You?

Versum Materials Inc (NYSE:VSM) is trading with a trailing P/E of 23.6x, which is higher than the industry average of 22.5x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … Breaking down the Price-Earnings ratio

Simply Wall St -

What Investors Should Know About Versum Materials Inc's (NYSE:VSM) Financial Strength

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Versum Materials Inc (NYSE:VSM) with a market-capitalization of US$4.25b, rarely draw their attention. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

What Do Analysts Think About the future of Versum Materials Inc's (NYSE:VSM)?

earnings growth of 24.02% annualised … over the couple of years ahead, … it's important to take a step back

Simply Wall St -

Flavor Of The Month: Versum Materials And More

VSM ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. … MELI’s projected future profit growth is a robust 40.26%, with an underlying triple-digit growth from its revenues expected over the upcoming years. … NasdaqGS:MELI Future Profit Apr 28th 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

Simply Wall St -

Versum Materials Inc (NYSE:VSM): What Is Driving Earnings Margins?

Margin Calculation for VSM Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 160.80 Million ÷ 1.19 Billion = 13.55% Versum Materials's margin has expanded in the past five years, with 26.12% in average net income growth outstripping a 6.05% average growth in revenue, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … Understanding what could be driving Versum Materials's future earnings It is expected that margins will keep on expanding, with 4.57% in expected annual revenue growth and a forecasted 22.83% in annual net income growth. … Thus, it is essential to run your own analysis on Versum Materials's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

Is Versum Materials Inc (VSM) A Buy At Its Current Price?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for VSM Price per share = 41.55 Earnings per share = 1.781 ∴ Price-Earnings Ratio = 41.55 ÷ 1.781 = 23.3x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you inadvertently compared lower risk firms with VSM, then investors would naturally value VSM at a lower price since it is a riskier investment.

Simply Wall St -

Company Info

Map
Description

Versum Materials, Inc. develops, manufactures, transports, and handles specialty materials for the semiconductor and display industries in the United States, Taiwan, South Korea, China, Europe, and rest of Asia. It operates in two segments, Materials, and Delivery Systems and Services (DS&S). The Materials segment provides specialty chemicals and materials used in semiconductors, as well as specialty gases used in the semiconductor manufacturing process, including high purity process materials for deposition, metallization, and chamber cleaning and etching; chemicals mechanical planarization slurries; organosilanes; organometallics and liquid dopants for thin film deposition; and formulated chemical products for post-etch cleaning primarily for the manufacture of silicon and compound semiconductors, and thin film transistor liquid crystal displays. The DS&S segment develops, designs, manufactures, and sells bulk gas, specialty gas, and specialty chemical cabinets and systems, which are used to manage the delivery of key materials into the semiconductor manufacturing process; and flow and temperature control systems and analytical systems to capture data. It also engages in the project management for installation and startup of the gas and chemical delivery systems, and inventory management; and provision of spare parts, equipment upgrades, equipment maintenance, and training services. In addition, this segment offers on-site services to assist customers in managing the inventory of gases and chemicals comprising ordering, product changes and monitoring, quality assurance, operation of delivery systems, and managing the bulk gas and specialty gas operations. The company was founded in 2015 and is headquartered in Tempe, Arizona.

Details
Name: Versum Materials, Inc.
VSM
Exchange: NYSE
Founded: 2015
$4,065,982,949
108,949,168
Website: http://www.versummaterials.com
Address: Versum Materials, Inc.
8555 South River Parkway,
Tempe,
Arizona, 85284,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE VSM Common Stock New York Stock Exchange US USD 19. Sep 2016
DB 2V1 Common Stock Deutsche Boerse AG DE EUR 19. Sep 2016
Number of employees
Current staff
Staff numbers
2,200
Versum Materials employees.
Industry
Semiconductor Equipment
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/08/17 21:34
End of day share price update: 2018/08/17 00:00
Last estimates confirmation: 2018/08/16
Last earnings update: 2018/06/30
Last annual earnings update: 2017/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.