Cambium Networks (NasdaqGM:CMBM) - Share price, News & Analysis

CMBM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

CMBM Overview

Cambium Networks Corporation, through its subsidiaries, provides wireless broadband networking infrastructure products and solutions for network operators.

Rewards

Trading at 48.8% below our estimate of its fair value

Earnings are forecast to grow 13.82% per year

Earnings grew by 1302.6% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Cambium Networks Competitors

Ubiquiti

NYSE:UI

US$18.8b

Extreme Networks

NasdaqGS:EXTR

US$1.2b

Aviat Networks

NasdaqGS:AVNW

US$368.6m

EMCORE

NasdaqGM:EMKR

US$252.7m

Price History & Performance

Summary of all time highs, changes and price drops for Cambium Networks
Historical stock prices
Current Share Price	US$35.42
52 Week High	US$15.10
52 Week Low	US$66.40
Beta	0.50
1 Month Change	-6.10%
3 Month Change	-25.98%
1 Year Change	117.84%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	265.16%

Shareholder Returns

	CMBM	US Communications	US Market
7D	-2.9%	-3.3%	-1.7%
1Y	117.8%	46.5%	36.2%

Return vs Industry: CMBM exceeded the US Communications industry which returned 46.5% over the past year.

Return vs Market: CMBM exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is CMBM's price volatile compared to industry and market?
CMBM volatility
CMBM Beta	0.50
Industry Beta	0.95
Market Beta	1

Stable Share Price: CMBM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CMBM's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	512	Atul Bhatnagar	https://www.cambiumnetworks.com

Cambium Networks Corporation, through its subsidiaries, provides wireless broadband networking infrastructure products and solutions for network operators. Its wireless fabric includes intelligent radios, smart antennas, radio frequency (RF) algorithms, wireless-aware switches, and network management software. The company offers point-to-point backhaul, point-to-multipoint distribution, Wi-Fi access, cnMatrix ethernet enterprise switching, cnReach IIoT, cnVision video surveillance transport, and cnMaestro and network management tools and solutions.

Cambium Networks Fundamentals Summary

How do Cambium Networks's earnings and revenue compare to its market cap?
CMBM fundamental statistics
Market Cap	US$936.03m
Earnings (TTM)	US$47.48m
Revenue (TTM)	US$337.00m

19.8x

P/E Ratio

2.8x

P/S Ratio

Is CMBM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMBM income statement (TTM)
Revenue	US$337.00m
Cost of Revenue	US$168.43m
Gross Profit	US$168.57m
Expenses	US$121.09m
Earnings	US$47.48m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.83
Gross Margin	50.02%
Net Profit Margin	14.09%
Debt/Equity Ratio	32.6%

How did CMBM perform over the long term?

See historical performance and comparison

Valuation

Is Cambium Networks undervalued compared to its fair value and its price relative to the market?

48.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CMBM ($35.42) is trading below our estimate of fair value ($69.17)

Significantly Below Fair Value: CMBM is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CMBM is good value based on its PE Ratio (19.8x) compared to the US Communications industry average (22.1x).

PE vs Market: CMBM is poor value based on its PE Ratio (19.8x) compared to the US market (17.7x).

Price to Earnings Growth Ratio

PEG Ratio: CMBM is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: CMBM is overvalued based on its PB Ratio (9.4x) compared to the US Communications industry average (2.2x).

Future Growth

How is Cambium Networks forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMBM's forecast earnings growth (13.8% per year) is above the savings rate (2%).

Earnings vs Market: CMBM's earnings (13.8% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: CMBM's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMBM's revenue (12% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: CMBM's revenue (12% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CMBM's Return on Equity is forecast to be high in 3 years time (29.2%)

Past Performance

How has Cambium Networks performed over the past 5 years?

40.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CMBM has high quality earnings.

Growing Profit Margin: CMBM's current net profit margins (14.1%) are higher than last year (1.3%).

Past Earnings Growth Analysis

Earnings Trend: CMBM's earnings have grown significantly by 40.7% per year over the past 5 years.

Accelerating Growth: CMBM's earnings growth over the past year (1302.6%) exceeds its 5-year average (40.7% per year).

Earnings vs Industry: CMBM earnings growth over the past year (1302.6%) exceeded the Communications industry 63%.

Return on Equity

High ROE: CMBM's Return on Equity (47.4%) is considered outstanding.

Financial Health

How is Cambium Networks's financial position?

Financial Position Analysis

Short Term Liabilities: CMBM's short term assets ($170.5M) exceed its short term liabilities ($86.1M).

Long Term Liabilities: CMBM's short term assets ($170.5M) exceed its long term liabilities ($30.8M).

Debt to Equity History and Analysis

Debt Level: CMBM's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CMBM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CMBM's debt is well covered by operating cash flow (134.8%).

Interest Coverage: CMBM's interest payments on its debt are well covered by EBIT (9.2x coverage).

Balance Sheet

Dividend

What is Cambium Networks's current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CMBM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CMBM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CMBM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CMBM's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CMBM's dividend in 3 years as they are not forecast to pay a notable one for the US market.

Next Steps

Explore strong dividend paying companies in the Tech industry.

Management

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

6.0yrs

Average management tenure

CEO

Atul Bhatnagar (63 yo)

8.58yrs

Tenure

US$5,360,840

Compensation

Mr. Atul Bhatnagar has been President and Chief Executive Officer at Cambium Networks Corporation since February 2013 and serves as its Director since September 2014. He has been the Chief Executive Office...

CEO Compensation Analysis

Compensation vs Market: Atul's total compensation ($USD5.36M) is above average for companies of similar size in the US market ($USD2.35M).

Compensation vs Earnings: Atul's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CMBM's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: CMBM's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 3.2%.

Data	Last Updated (UTC time)
Company Analysis	2021/09/23 23:09
End of Day Share Price	2021/09/23 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data