Stock Updates

Is this Large Market Cap Stock target price reasonable for Cavium, Inc. (NASDAQ:CAVM)?

The company in question is, Cavium, Inc. (NASDAQ:CAVM) currently with a stock price of 53.61 (0.30% today). The market cap for Cavium, Inc. is 3109.19, and is in the sector Technology, and Semiconductor – Broad Line industry. The target price for Cavium, Inc. is 59.62. Currently Cavium, Inc. is trading with a P/E of *TBA, and a forward P/E of 20.27. Average volume for Cavium, Inc. is 1230.07 and so far today it is 643069.

Performance in the last year for Cavium, Inc. has been -20.73%. For EPS growth, Cavium, Inc. has seen a growth of -7.30%, and is looking to grow in the next year to 83.00%. More long term stats show that EPS growth has been -15.90% over the last five years and could be 27.30% for the next five years. Cavium, Inc. has seen sales growth quarter over quarter at 2.10%, with EPS growth quarter over quarter at -12.50%. The 20-day simple moving average is -1.87%, with the 200-day simple moving average coming to 1.83%.

Since the IPO date for Cavium, Inc. on the 05/02/2007, Cavium, Inc. has seen performance year to date to be -18.66%. With Cavium, Inc. trading at 53.61, the dividend yield is *TBA, and the EPS is -0.14.

So could Cavium, Inc., be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 7.49 and the P/B is at 8.17. The P/cash is 22.15, with P/free cash flow at 85.65.

Cavium, Inc. ability to deal with debt shows that the current ratio is 4, and the quick ratio is 3.2. This is with long term debt/equity at 0.01, and total debt/equity at 0.06.

In terms of margins, Cavium, Inc. has a gross margin of 66.40%, an operating margin of -1.30% and a profit margin of -1.90%.Payout ratio for Cavium, Inc. is *TBA. Return on assets come to -1.80% with return on investment coming to -4.00%.

Insider ownership for Cavium, Inc., is at 0.40% and institutional ownership comes to *TBA. Outstanding shares are at 58.17. While shares float is 55.79. The float short is currently 15.63%, and short ratio is 7.09.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

Leave a Comment