Cavium Stock Analysis, Valuation (NASDAQ:CAVM)
Cavium Analysis Video
View Cavium stock analysis video. This is our CAVM analyst opinion covering the buy and sell arguments for CAVM stock.
Cavium Inc Stock Rating (1.8/5)
Our Cavium stock opinion is based on fundamentals of the company. This Cavium stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy CAVM stock?
- Cavium's revenue growth came in at 125.9% in 2017 Q2.
- Revenue growth has been tremendous with a compounded annual growth of 30.1% over the last 5 years.
Should you sell CAVM stock?
- Over the last twelve months, Cavium posted an average operating loss margin of -19.5%.
- Cavium posted an average Net loss of -22.8% in the last twelve months.
- Cavium is debt laden and has a high debt/equity ratio of 0.87.
- CAVM stock is trading at a PE ratio of 108.9, which is worse than the industry average multiple of 25.1.
- CAVM stock is trading at a PS multiple of 4.8, which is a negative when compared to the Electronics-Semiconductors industry average multiple of 2.6.
- Cavium has a negative ROIC (Return on Invested Capital) of -10%.
- Cavium has a negative ROE (Return On Equity) of -29%, indicating the company is not profitable.