Cabot Microelectronics Corporation Stock Price and Value Analysis

Should you buy Cabot Microelectronics Corporation stock? (NasdaqGS:CCMP). Let's see how it does in our automated value investing analysis system.

CCMP Free Cash Flow Trend

Free Cash Flow trendline for CCMP
Free Cash Flow trendline for Cabot Microelectronics Corporation

Based on historical returns, we believe that Cabot Microelectronics Corporation can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company is solid.
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company has a low dividend yield.
  • This company has wild ups and downs.

Inside the CCMP Numbers

CCMP Price
(Cabot Microelectronics Corporation stock price per share)
$164.54
[?] CCMP Fair Price
(based on intrinsic value)
$58.28
[?] CCMP Safety Price (based on a variable margin of safety) $37.88
[?] PE Ratio versus Sector 117% higher than other Technology stocks
[?] PE Ratio versus Industry 205% higher than other Semiconductor Equipment & Materials stocks
[?] Cash Yield 2.15%
[?] Free Cash Flow Jitter 65%
[?] Dividend Yield 1%
Shares Shorted 532,174

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 532,174 shares shorted. With 28,908,320 shares available for purchase and an average trading volume over the past 10 trading days of 205,728, it would take at least 2.587 days for all of the short holders to cover their shorts.

Is Cabot Microelectronics Corporation Stock on Sale?

We believe that Cabot Microelectronics Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Cabot Microelectronics Corporation looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy CCMP Stock?

Does Cabot Microelectronics Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.