Cavium Stock Analysis, Valuation (NASDAQ:CAVM)

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$87.16 $0.09 (0.1%) CAVM stock closing price Feb 16, 2018 (Closing)
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Cavium
Updated on : Feb 16, 2018
previous close
CAVM 87.2 (0%)
NASDAQ 7239.5 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Semiconductors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
33.1%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
PROS      CONS
Recent Growth
Long Term Growth
Net Margins
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CAVM PS :
6.1
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
-9.4%
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Cavium Stock Analysis

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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 Year Over Year (YoY) revenue growth for Cavium was 15.1% in 2017 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 33.1%.

Should you sell CAVM stock?

  • Cavium posted an average Net loss of -7% in the last twelve months.
  • CAVM stock is trading at a PE ratio of 61, which is worse than the industry average multiple of 25.7.
  • The company is trading at a price to sales multiple of 6.1, which is higher in comparison to the Electronics-Semiconductors industry average of 2.8, making CAVM stock expensive.
  • Cavium has a negative return on equity of -9.4%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Cavium stock

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.