Core Molding Technologies (CMT) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for Core Molding Technologies (CMT) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Core Molding Technologies Fundamentals
Stock Price Target: $15.88
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Core Molding Technologies in comparison to the Chemical industry and the S&P 500.
Core Molding Technologies is a Micro Cap company with a Market Cap of $79.6M.
How are investors using Core Molding Technologies earnings yield to assess the company?
The earnings yield is used to show the percentage of a company’s earnings per share. Investors typically use earnings yield to determine which assets are underpriced or overpriced relative to other variables, like sector, industry or bond yields. Simply put, the earnings yield of a company can be used to assess how expensive a company is in relation to the earnings that are generated. When valuing companies, the SIS Research Group does not utilize the inverse P/E ratio to calculate the earnings yield. Instead, we use an adjusted earning yield calculation to capture variation amongst companies (i.e. debt and tax rates).
The current earnings yield for Core Molding Tech is 15.64%%, in comparison to 3.46% for the S&P 500 and 1.48% for the 10-year treasury bond. The median earnings yield for the Chemical industry is 11.70%.
What does Core Molding Technologies Price-to-Earnings Ratio (P/E) tell investors about the company?
The price-to-earnings ratio (P/E) is a relatively popular metric used by investors and analysts for valuing a company’s stock. The P/E ratio can be used to show how a stock’s valuation compares to other companies and the total market. Investors use the P/E ratio to determine what the market is willing to pay today based on a company’s past or future earnings. A high P/E ratio could mean that a stock’s price is too high relative to earnings, which could be a signal that a stock is currently overvalued. In turn, a low P/E ratio could indicate that a company’s current stock price is low relative to earnings.
Core Molding Tech is currently trading at a P/E of 23.53. The P/E for the Chemical industry is 19.66 and the P/E for the S&P 500 is 28.94.
What is the current Price-to-Sales Ratio (P/S) for Core Molding Technologies?
The Price-to-Sales Ratio (P/S) looks at a company’s market cap and revenue to determine valuation. The P/S ratio is calculated by taking a company’s market cap and dividing by the total sales or revenue. The P/S ratio gives an idea of how much the market values every dollar of a company’s sales and can be effective in valuing unprofitable growth stocks or companies that are currently undergoing special situations or challenges. A lower the P/S ratio can be an indicator of good value.
Core Molding Tech is currently trading at a P/S of 0.32. The P/S for the Chemical industry is 1.05 and the P/S for the S&P 500 is 3.14.
How does Core Molding Technologies Price-to-BookRatio (P/B) compare to the Chemical industry?
Price-to-book value (P/B) is the ratio of the market value of a company’s shares divided by its book value of equity (the value of it’s assets on the books). The book value is the difference between the book value of assets and liabilities. Typically, investors use the P/B ratio to assess if a stock is valued properly (a value of one means that the stock price is trading in line with the book value of the company). A company with a high P/B ratio could mean the stock price is overvalued as well as the converse.
Core Molding Tech P/B ratio is 0.76. The P/B for the Chemical industry is 2.96 and the P/B for the S&P 500 is 4.74.
How attractive is Core Molding Technologies Return on Invested Capital (ROIC) to investors?
Investors use the return on invested capital (ROIC) to assess how efficient a company is at turning capital into profits. The ROIC is the amount of money a company makes on it’s investments that is above the average cost of debt and equity.
Investors can use the ROIC to provide context for metrics like the (P/E) ratio. For instance, when used in isolation a low P/E ratio could suggest a company is oversold but the decline could be because a company is no longer generating value for shareholders. Conversely, companies that consistently generate high rates of ROIC can plausibly trade at a premium compared to other stocks, even if their P/E ratios are high.
Core Molding Tech ROIC is currently 2.48% in comparison to 8.07% for the Chemical industry and 8.60% for the S&P 500.
What is Core Molding Technologies YTD Performance in comparison to its industry and the total market?
The year-to-date (YTD) performance is the amount of profit/loss realized by a stock since the first trading day of the current calendar year.
The YTD performance for Core Molding Technologies is -37.86%. The Chemical industry has a YTD performance of 14.62% in comparison to the YTD S&P 500 performance of 20.49%.
Recent Financial Results (Q3 2021)
- Net sales reported of $81M compared to $59.9M in the previous years quarter
- Product sales of $67.6M compared to $54.2M in the previous years quarter
- Gross margin of 7.9% compared to 18.1% in the previous years quarter
- Selling, general and administrative expenses of $8.8M compared to $6.5M in the previous years quarter
- Operating loss of $2.4M compared to operating income of $4.3M in the previous years quarter
- Net loss of $3.3M, or ($0.41) per share, compared to net income of $3.3M, or $0.39 per share in the previous years quarter
Stock Price Target: $15.88
Core Molding Technologies engages in the molding of thermoplastic and thermoset structural products. The company offers a range of manufacturing processes that include compression molding of sheet molding compounds, bulk molding compounds and reaction injection molding utilizing dicyclopentadiene technology.
It serves various markets, including medium and heavy-duty truck, marine, automotive, agriculture, construction, and other commercial products in the US, Mexico, Canada and internationally. The company was formerly known as Core Materials Corporation and changed its name to Core Molding Technologies in August 2002.
Core Molding Technologies was incorporated in 1996 and is headquartered in Columbus, Ohio. The current CEO is David Duvall.
Be sure to add Core Molding Technologies (CMT stock) to your Watch List and if you haven’t done so already, check in on the performance of our Current Portfolio. Keep it simple and always do your due diligence.
This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.