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.
Moderate growth potential with imperfect balance sheet.
Share Price & News
How has Versum Materials's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VSM has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: VSM exceeded the US Semiconductor industry which returned 48.5% over the past year.
Return vs Market: VSM exceeded the US Market which returned 24.7% over the past year.
Price Volatility Vs. Market
How volatile is Versum Materials's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall StDo You Like Versum Materials, Inc. (NYSE:VSM) At This P/E Ratio?
1 year ago | Simply Wall StWhy You Should Like Versum Materials, Inc.’s (NYSE:VSM) ROCE
1 year ago | Simply Wall StWhat Should We Expect From Versum Materials Inc's (NYSE:VSM) Earnings In The Next Couple Of Years?
Is Versum Materials undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VSM ($52.99) is trading below our estimate of fair value ($56.16)
Significantly Below Fair Value: VSM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: VSM is poor value based on its PE Ratio (73.4x) compared to the Semiconductor industry average (34.5x).
PE vs Market: VSM is poor value based on its PE Ratio (73.4x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: VSM is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: VSM is overvalued based on its PB Ratio (33.6x) compared to the US Semiconductor industry average (3.3x).
How is Versum 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: VSM's forecast earnings growth (56.9% per year) is above the savings rate (2.7%).
Earnings vs Market: VSM's earnings (56.9% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VSM's revenue (1.9% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: VSM's revenue (1.9% 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 VSM's Return on Equity is forecast to be high in 3 years time
How has Versum Materials performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VSM has a large one-off loss of $160.2M impacting its June 30 2019 financial results.
Growing Profit Margin: VSM's current net profit margins (5.9%) are lower than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: VSM's earnings have grown by 0.2% per year over the past 5 years.
Accelerating Growth: VSM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VSM had negative earnings growth (-58.2%) over the past year, making it difficult to compare to the Semiconductor industry average (-15.8%).
Return on Equity
High ROE: Whilst VSM's Return on Equity (42.04%) is outstanding, this metric is skewed due to their high level of debt.
How is Versum Materials's financial position?
Financial Position Analysis
Short Term Liabilities: VSM's short term assets ($735.2M) exceed its short term liabilities ($169.6M).
Long Term Liabilities: VSM's short term assets ($735.2M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: VSM's debt to equity ratio (480.4%) is considered high.
Reducing Debt: Insufficient data to determine if VSM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: VSM's debt is not well covered by operating cash flow (13.5%).
Interest Coverage: VSM's interest payments on its debt are well covered by EBIT (7.6x coverage).
Inventory Level: VSM has a high level of physical assets or inventory.
Debt Coverage by Assets: VSM's debt is not covered by short term assets (assets are 0.8x debt).
What is Versum Materials's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VSM's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: VSM's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: VSM is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: VSM is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: VSM is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VSM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Guillermo Novo (57yo)
Mr. Guillermo Novo serves as Chief Executive Officer and President of Versum Materials, Inc. Mr. Novo was a Director of Bemis Company, Inc. since March 16, 2018 until June 11, 2019. He served as an Executi ...
CEO Compensation Analysis
Compensation vs Market: Guillermo's total compensation ($USD4.81M) is about average for companies of similar size in the US market ($USD6.46M).
Compensation vs Earnings: Guillermo's compensation has been consistent with company performance over the past year.
|President||no data||US$4.81m||0.092% $5.3m|
|Executive VP & CFO||3yrs||US$2.36m||0.055% $3.2m|
|Senior VP of Law||no data||US$1.61m||0.026% $1.5m|
|Senior Vice President of Materials||2.67yrs||US$2.01m||0.010% $606.8k|
|VP, Controller & Principal Accounting Officer||3.08yrs||no data||0.0060% $345.1k|
|Senior VP & CTO||2.83yrs||no data||0.019% $1.1m|
|Head of Investor Relations||no data||no data||no data|
|Vice President of Human Resources||1yr||no data||no data|
|Senior Vice President of Delivery Systems & Services||1.92yrs||no data||0.0087% $504.9k|
Experienced Management: VSM's management team is considered experienced (2.8 years average tenure).
|President||no data||US$4.81m||0.092% $5.3m|
|Non-Executive Chairman||3.08yrs||US$283.00k||0.19% $10.8m|
|Independent Director||3yrs||US$233.00k||0.0063% $363.0k|
|Independent Director||3yrs||US$253.00k||0.015% $880.1k|
|Independent Director||3yrs||US$233.00k||0.031% $1.8m|
|Independent Director||3yrs||US$248.00k||0.019% $1.1m|
|Lead Director||2.42yrs||US$243.00k||0.0063% $364.2k|
Experienced Board: VSM's board of directors are considered experienced (3 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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Versum Materials, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Versum Materials, Inc.
- Ticker: VSM
- Exchange: NYSE
- Founded: 2015
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$5.790b
- Shares outstanding: 109.27m
- Website: https://www.versummaterials.com
Number of Employees
- Versum Materials, Inc.
- 8555 South River Parkway
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|2V1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 2016|
|VSM||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Sep 2016|
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 company operates through 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, 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 is also involved 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. Versum Materials, Inc. was founded in 2015 and is headquartered in Tempe, Arizona.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2019/10/07 02:39|
|End of Day Share Price||2019/10/04 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.