CCMP

CMC Materials Inc

Industrial/Transportation


Presented:02/17/2021
Price:$170.46
Cap:$4.97B
Current Price:$173.69
Cap:$5.04B

Presented

Date02/17/2021
Price$170.46
Market Cap$4.97B
Ent Value$5.13B
P/E Ratio37.12x
Book Value$38.02
Div Yield1.03%
Shares O/S29.17M
Ave Daily Vol190,133
Short Int2.44%

Current

Price$173.69
Market Cap$5.04B
CMC Materials, Inc. engages in the development, manufacture, and sale of chemical mechanical planarization consumables products. It operates through the following segments: Electronic Materials and Performance Material. The Electronic Materials segment consists of CMP slurries and polishing pads businesses and KMG electronic chemicals business. The Performance Materials segment includes KMG's heritage pipeline performance and wood treatment businesses and QED business. The firm offers chemical mechanical planarization slurries for polishing many of the conducting, insulating and isolating materials used in integrated circuit devices, and for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells chemical mechanical planarization polishing pads, which are used in conjunction with slurries in the chemical mechanical planarization process. The company was founded by William P. Noglows in October 1999 and is headquartered in Aurora, IL.

Publicly traded companies mentioned herein: CMC Materials Inc (CCMP), Entegris Inc (ENTG), Merck KGaA (MRK GR)

Highlights

The presenter is long CMC Materials Inc (CCMP) and characterizes it as a niche company with two key end markets. 80% of the business is selling consumables (slurry pads, chemicals) into the semiconductor manufacturing process, with the remaining 20% being drag reducing agents sold into energy, and more specifically midstream. Drag reducing agents (DRAs) are used in pipelines to increase the amount of flow and maximize yield. The presenter believes that this energy business is weighing on the performance of what should be a pure play semiconductor chemical business. As the energy industry improves, he believes CCMP will look to sell the energy business and that it should begin to trade closer to peers like ENTG. 

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