Cavium Stock Analysis, Valuation (NASDAQ:CAVM)
Take a look at Amigobulls Cavium stock analysis video. Our analyst opinion covering the buy and sell arguments for CAVM stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Cavium Inc Stock Rating 2/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CAVM stock analysis. We compare Cavium valuation with its sector peers to gauge relative attractiveness of CAVM stock. Our Cavium stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy CAVM stock?
- The company saw a significant growth in revenue with a 5 year CAGR of 31.3.
- The company has a good Free Cash Flow (FCF) margin of 19.4.
Should you sell CAVM stock?
- Over the last twelve months, Cavium posted an average operating loss margin of -5.51.
- Cavium registered an average TTM Net loss of -6.1%.
- Cavium has a debt/equity ratio of 0.83, which is worse than the average in the -sectordesc- sector.
- Trading at a PE ratio of 131.8, CAVM stock is overvalued in comparison to sector average multiple of 25.2.
- The company is trading at a price to sales multiple of 5.9, which is overvalued in comparison to the Computer and Technology sector average multiple of 2.8.
- -3.2's negative ROIC of -3.2 indicates operational inefficiency.
- Cavium has a negative return on equity of -8. This indicates that the firm is inefficient at generating profits.
Cavium Related Company Stock Videos
Amigobulls Cavium stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CAVM stock. The fundamentals of a company are vital to identify long-term investment opportunities.
Among the financials of the company, Cavium revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.