Fundamental Analysis on Stock CMOS

Fundamental Analysis on Stock CMOS

The most appropriate valuation measure for CMOS is the Price to Sales ratio. The Price to Book ratio is excluded since it most likely underestimates the company's book value by overlooking hidden assets such as intellectual property, while the PE and PEG ratios are not meaningful. Therefore CMOS seems valued at a discount with a Price to Sales ratio of 0.756, one of the lowest in the Semiconductors industry.

Losing money on an operating basis, CMOS appears to be an inefficient company. While its profitability is inline with the industry median on a gross margin basis, it's bottom line, the net margin, is among the Semiconductors industry's worst.

CMOS does not pay a dividend.

CMOS saw earnings decline in spite of positive revenue growth during the past twelve months. Additionally, the average company in the Semiconductors industry was able to improve its earnings result over this same period.

CMOS is overall doing a poor job in comparison to it's peers with a Revenues Per Employee, Return on Equity, and Return on Assets of $329,897.90, (106.64%), and (60.03%) respectively. Despite above average performance at managing their resources, the company is among the worst at generating revenues from employees and at managing their owner's equity compared to other companies in the Semiconductors industry.

CMOS is one of the most highly leveraged companies in the Semiconductors industry and has a Debt to Total Capital ratio of 47.57%. Additionally, the percentage of debt used in its capital structure grew this year. Its Interest Coverage ratio is only -16.5, which means that it does not earn enough from day-to-day operations to service its debt. However, the Quick ratio shows that the balance sheet can make up for this shortfall as there are enough liquid assets to satisfy current obligations.


Author: Jack Leeroy Free Stock Market Research: