The growth of the EPS is critical in understanding the current valuation of Cabot Microelectronics Corporation. It is usually expressed as a percentage and is then referred to as the EPS growth rate, which at this time is hard to estimate, but revenue growth has been 13.10 % over the last twelve months. The long-term trend in EPS shows how well the management of Cabot Microelectronics Corporation is adding value for shareholders.



Cabot Microelectronics Corporation is part of the semiconductors industry and technology sector. The company CEO is David H. Li. Cabot Microelectronics Corp is the supplier of polishing slurries and a growing polishing pad, used in the manufacture of integrated circuit devices within the semiconductor industry, in a process called chemical mechanical planarization.

Previous Intraday Performance:

The CCMP shares had a previous change of 1.67% which opened at 106.02 and closed at 107.48. It moved to an intraday high of 107.58 and a low of 104.47.

SeekingAlpha:  Merger Arbitrage Mondays – November 19, 2018

Historical Performance:

Over the last five trading days, CCMP shares returned 4.42% and in the past 30 trading days it returned 13.74%. Over three months, it changed -6.44%. In one year it has changed 8.56% and within that year its 52-week high was 123.76 and its 52-week low was 89.19. CCMP stock is 20.51% above its 52 Week Low.

Our calculations result in a 200 day moving average of 107.62 and a 50 day moving average of 100.18. Right now, CCMP stock is trading -0.13% below its 200 day moving average and may be a great opportunity to buy, but should check other technical indicators to confirm a buy signal.

SeekingAlpha:  Merger Arbitrage Mondays – November 19, 2018

Liquidity:

The company has a market cap of $3.1b with 28.7m shares outstanding and a float of 27.9m shares. Trading volume was 256,892 shares and has experienced an average volume of 234,824 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for Cabot Microelectronics Corporation was 5.23 which ended on 30th of September 2018, which according to the previous close, that is a PE of 25.59. Based on 1 analyst estimate, the estimated EPS for the next quarter is 1.21. The trailing twelve month EPS is 4.82, which comes to a trailing twelve month PE of 22.30. Historically, the PE high was 36.50 and the PE low was 15.30. If the stock reached its PE low, that would represent a price of 73.74, which is a decrease of -31.39%.

Below was the last reported quarterly earnings per share:
09-30-2018:  1.48
06-30-2018:  1.37
03-31-2018:  1.19
12-31-2017:  1.19

The dividend per share is currently 1.60, which is a dividend yield of 1.49%. Also, the payout ratio is 33.20%, therefore the dividend is safe according to our calculations.



Base on our calculations, the intrinsic value per share is 143.51, which means it might be undervalued and has a margin of safety of 25.11%

Indicators Also to Watch:

Based on the latest filings, there is 3.00% of insider ownership and 159.90% of institutional ownership. Short-interest was 0, which was 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio was 0.00.

I calculated the beta to be 1.29

SeekingAlpha:  Tracking Wallace Weitz’s Weitz Investment Management Portfolio – Q3 2018 Update

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 17.42%, return on assets is 13.61%, profit margin is 18.65%, price-to-sales is 5.14 and price-to-book is 4.63.

Company Score Card:

Results are out of six:
 5  : Growth Expectations Result
 6  : Financial Safety Result
 5  : Past Performance Result
 1  : Valuation Result
 3  : Dividend Safety Result
 4  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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