CMC Materials Inc (CCMP)
US12571T1007 - Common Stock
We assign a fundamental rating of 3 out of 10 to CCMP. CCMP was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of CCMP have multiple concerns. While showing a medium growth rate, CCMP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CCMP was profitable.
CCMP had positive earnings in 4 of the past 5 years.
CCMP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 11.83% | ||
| ROIC | 9.59% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.46% | ||
| PM (TTM) | 8.85% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CCMP is destroying value.
The number of shares outstanding for CCMP has been reduced compared to 1 year ago.
Compared to 1 year ago, CCMP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.76 indicates that CCMP is not in any danger for bankruptcy at the moment.
CCMP has a Debt/Equity ratio of 0.95. This is a neutral value indicating CCMP is somewhat dependend on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.76 |
ROIC/WACC0.94
WACC10.17%
2.3 Liquidity
A Current Ratio of 3.15 indicates that CCMP has no problem at all paying its short term obligations.
A Quick Ratio of 2.22 indicates that CCMP has no problem at all paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.22% over the past year.
CCMP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.96% yearly.
The Revenue has grown by 12.00% in the past year. This is quite good.
The Revenue has been growing by 22.76% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1.22%
EPS 3Y10.78%
EPS 5Y22.96%
EPS growth Q2Q13.45%
Revenue 1Y (TTM)12%
Revenue growth 3Y26.69%
Revenue growth 5Y22.76%
Revenue growth Q2Q11.58%
3.2 Future
CCMP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.13% yearly.
CCMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y9.38%
EPS Next 2Y5.94%
EPS Next 3Y2.79%
EPS Next 5Y1.13%
Revenue Next Year7.72%
Revenue Next 2Y5.09%
Revenue Next 3Y3.21%
Revenue Next 5Y1.93%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CCMP is valuated rather expensively with a Price/Earnings ratio of 23.22.
The average S&P500 Price/Earnings ratio is at 24.55. CCMP is around the same levels.
Based on the Price/Forward Earnings ratio of 21.77, the valuation of CCMP can be described as rather expensive.
CCMP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 21.77 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.47
PEG (5Y)1.01
EPS Next 2Y5.94%
EPS Next 3Y2.79%
5. Dividend
5.1 Amount
CCMP has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average S&P500 Dividend Yield of 2.39, CCMP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of CCMP is nicely growing with an annual growth rate of 9.14%!
CCMP has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)9.14%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
CCMP pays out 47.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CCMP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.84%
EPS Next 2Y5.94%
EPS Next 3Y2.79%
CMC Materials Inc
NASDAQ:CCMP (7/5/2022, 7:00:03 PM)
After market: 173.69 0 (0%)173.69
+1.01 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 21.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.47
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 11.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.46% | ||
| PM (TTM) | 8.85% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.22%
EPS 3Y10.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12%
Revenue growth 3Y26.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y