CABOT CORP (CBT)
US1270551013 - Common Stock
Overall CBT gets a fundamental rating of 7 out of 10. We evaluated CBT against 85 industry peers in the Chemicals industry. CBT gets an excellent profitability rating and is at the same time showing great financial health properties. CBT has a decent growth rate and is not valued too expensively. This makes CBT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year CBT was profitable.
CBT had a positive operating cash flow in the past year.
Of the past 5 years CBT 4 years were profitable.
Each year in the past 5 years CBT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CBT (10.01%) is better than 92.94% of its industry peers.
The Return On Equity of CBT (26.25%) is better than 92.94% of its industry peers.
CBT has a Return On Invested Capital of 16.12%. This is amongst the best in the industry. CBT outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBT is significantly above the industry average of 7.26%.
The 3 year average ROIC (15.53%) for CBT is below the current ROIC(16.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 26.25% | ||
| ROIC | 16.12% |
ROA(3y)9.33%
ROA(5y)5.38%
ROE(3y)27.92%
ROE(5y)15.08%
ROIC(3y)15.53%
ROIC(5y)14.15%
1.3 Margins
With an excellent Profit Margin value of 9.36%, CBT belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
CBT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.37%, CBT belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
CBT's Operating Margin has improved in the last couple of years.
The Gross Margin of CBT (24.04%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CBT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.37% | ||
| PM (TTM) | 9.36% | ||
| GM | 24.04% |
OM growth 3Y4.07%
OM growth 5Y7.89%
PM growth 3Y8.93%
PM growth 5Y15.05%
GM growth 3Y0.55%
GM growth 5Y2.94%
2. Health
2.1 Basic Checks
CBT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CBT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CBT has less shares outstanding
Compared to 1 year ago, CBT has an improved debt to assets ratio.
2.2 Solvency
CBT has an Altman-Z score of 3.99. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT has a better Altman-Z score (3.99) than 85.88% of its industry peers.
CBT has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as CBT would need 2.53 years to pay back of all of its debts.
CBT's Debt to FCF ratio of 2.53 is amongst the best of the industry. CBT outperforms 85.88% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that CBT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, CBT is in line with its industry, outperforming 44.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.96
WACC8.21%
2.3 Liquidity
CBT has a Current Ratio of 2.08. This indicates that CBT is financially healthy and has no problem in meeting its short term obligations.
CBT has a Current ratio (2.08) which is in line with its industry peers.
A Quick Ratio of 1.36 indicates that CBT should not have too much problems paying its short term obligations.
The Quick ratio of CBT (1.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.23% over the past year.
CBT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.54% yearly.
Looking at the last year, CBT shows a small growth in Revenue. The Revenue has grown by 1.60% in the last year.
CBT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.66% yearly.
EPS 1Y (TTM)31.23%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%9.09%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%3.73%
3.2 Future
CBT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.25% yearly.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y9.44%
EPS Next 2Y10.02%
EPS Next 3Y10.25%
EPS Next 5YN/A
Revenue Next Year4.28%
Revenue Next 2Y3.81%
Revenue Next 3Y3.97%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CBT is valuated correctly with a Price/Earnings ratio of 14.88.
CBT's Price/Earnings ratio is a bit cheaper when compared to the industry. CBT is cheaper than 76.47% of the companies in the same industry.
CBT is valuated rather cheaply when we compare the Price/Earnings ratio to 29.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.59 indicates a correct valuation of CBT.
69.41% of the companies in the same industry are more expensive than CBT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CBT to the average of the S&P500 Index (23.95), we can say CBT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued a bit cheaper than 78.82% of the companies in the same industry.
76.47% of the companies in the same industry are more expensive than CBT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.65 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
CBT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CBT may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)1.19
EPS Next 2Y10.02%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 1.66%.
CBT's Dividend Yield is comparable with the industry average which is at 3.00.
Compared to the average S&P500 Dividend Yield of 2.16, CBT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
The dividend of CBT has a limited annual growth rate of 4.51%.
CBT has been paying a dividend for at least 10 years, so it has a reliable track record.
CBT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.51%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
CBT pays out 24.87% of its income as dividend. This is a sustainable payout ratio.
CBT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.87%
EPS Next 2Y10.02%
EPS Next 3Y10.25%
CABOT CORP
NYSE:CBT (12/6/2024, 8:04:00 PM)
After market: 105.03 0 (0%)105.03
+1.37 (+1.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.70B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.58
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 26.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.37% | ||
| PM (TTM) | 9.36% | ||
| GM | 24.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)31.23%
EPS 3Y12.04%
EPS 5Y
EPS Q2Q%
EPS Next Y9.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.6%
Revenue growth 3Y5.42%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y