CABOT CORP (CBT) Stock Fundamental Analysis
NYSE:CBT - New York Stock Exchange, Inc. - US1270551013 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CBT. CBT was compared to 84 industry peers in the Chemicals industry. CBT has an excellent profitability rating, but there are some minor concerns on its financial health. CBT is cheap, but on the other hand it scores bad on growth. Finally CBT also has an excellent dividend rating. This makes CBT very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
CBT had positive earnings in the past year.
In the past year CBT had a positive cash flow from operations.
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 (11.31%) is better than 98.81% of its industry peers.
Looking at the Return On Equity, with a value of 29.99%, CBT belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
CBT's Return On Invested Capital of 16.00% is amongst the best of the industry. CBT outperforms 97.62% of its industry peers.
CBT had an Average Return On Invested Capital over the past 3 years of 15.53%. This is significantly above the industry average of 6.84%.
The 3 year average ROIC (15.53%) for CBT is below the current ROIC(16.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.31% | ||
| ROE | 29.99% | ||
| ROIC | 16% |
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
The Profit Margin of CBT (10.95%) is better than 86.90% of its industry peers.
In the last couple of years the Profit Margin of CBT has grown nicely.
With an excellent Operating Margin value of 16.35%, CBT belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
CBT's Operating Margin has improved in the last couple of years.
CBT has a Gross Margin (24.87%) which 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 | 16.35% | ||
| PM (TTM) | 10.95% | ||
| GM | 24.87% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CBT is creating some value.
CBT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CBT has been reduced compared to 5 years ago.
The debt/assets ratio for CBT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.51 indicates that CBT is not in any danger for bankruptcy at the moment.
CBT's Altman-Z score of 3.51 is amongst the best of the industry. CBT outperforms 80.95% of its industry peers.
CBT has a debt to FCF ratio of 4.09. This is a neutral value as CBT would need 4.09 years to pay back of all of its debts.
CBT's Debt to FCF ratio of 4.09 is amongst the best of the industry. CBT outperforms 84.52% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that CBT is somewhat dependend on debt financing.
CBT's Debt to Equity ratio of 0.90 is on the low side compared to the rest of the industry. CBT is outperformed by 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.51 |
ROIC/WACC1.79
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.96 indicates that CBT should not have too much problems paying its short term obligations.
CBT's Current ratio of 1.96 is in line compared to the rest of the industry. CBT outperforms 48.81% of its industry peers.
A Quick Ratio of 1.30 indicates that CBT should not have too much problems paying its short term obligations.
CBT's Quick ratio of 1.30 is in line compared to the rest of the industry. CBT outperforms 54.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.13% over the past year.
Measured over the past years, CBT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.54% on average per year.
CBT shows a decrease in Revenue. In the last year, the revenue decreased by -0.05%.
The Revenue has been growing slightly by 3.66% on average over the past years.
EPS 1Y (TTM)15.13%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%6.74%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-8.15%
3.2 Future
CBT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.57% yearly.
Based on estimates for the next years, CBT will show a small growth in Revenue. The Revenue will grow by 0.70% on average per year.
EPS Next Y4.43%
EPS Next 2Y5.97%
EPS Next 3Y6.57%
EPS Next 5YN/A
Revenue Next Year-4.52%
Revenue Next 2Y-0.57%
Revenue Next 3Y0.7%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.92, which indicates a very decent valuation of CBT.
CBT's Price/Earnings ratio is rather cheap when compared to the industry. CBT is cheaper than 86.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, CBT is valued rather cheaply.
The Price/Forward Earnings ratio is 9.23, which indicates a very decent valuation of CBT.
Based on the Price/Forward Earnings ratio, CBT is valued a bit cheaper than 77.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. CBT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than CBT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CBT indicates a rather cheap valuation: CBT is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CBT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CBT may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)0.79
EPS Next 2Y5.97%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, CBT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.68, CBT pays a bit more dividend than its industry peers.
CBT's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of CBT has a limited annual growth rate of 4.51%.
CBT has paid a dividend for at least 10 years, which is 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
22.20% of the earnings are spent on dividend by CBT. This is a low number and sustainable payout ratio.
CBT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.2%
EPS Next 2Y5.97%
EPS Next 3Y6.57%
73.19
+0.1 (+0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.09%
Inst Owner Change-2.29%
Ins Owners1.07%
Ins Owner Change1.15%
Market Cap3.93B
Analysts73.33
Price Target87.47 (19.51%)
Short Float %5.78%
Short Ratio6.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend1.7
Dividend Growth(5Y)4.51%
DP22.2%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.9%
Min EPS beat(2)0.36%
Max EPS beat(2)1.43%
EPS beat(4)3
Avg EPS beat(4)2.66%
Min EPS beat(4)-1.41%
Max EPS beat(4)10.27%
EPS beat(8)6
Avg EPS beat(8)2.73%
EPS beat(12)10
Avg EPS beat(12)3.16%
EPS beat(16)14
Avg EPS beat(16)5.76%
Revenue beat(2)0
Avg Revenue beat(2)-7.32%
Min Revenue beat(2)-9.48%
Max Revenue beat(2)-5.16%
Revenue beat(4)1
Avg Revenue beat(4)-4%
Min Revenue beat(4)-9.48%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-4.44%
Revenue beat(12)4
Avg Revenue beat(12)-2.57%
Revenue beat(16)7
Avg Revenue beat(16)0.44%
PT rev (1m)-6.03%
PT rev (3m)-18.33%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-6.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)-2.89%
Revenue NQ rev (3m)-8.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-6.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.23 | ||
| P/S | 1.01 | ||
| P/FCF | 12.48 | ||
| P/OCF | 6.47 | ||
| P/B | 2.76 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 6.11 |
EPS(TTM)7.38
EY10.08%
EPS(NY)7.93
Fwd EY10.83%
FCF(TTM)5.86
FCFY8.01%
OCF(TTM)11.32
OCFY15.46%
SpS72.75
BVpS26.56
TBVpS23.16
PEG (NY)2.24
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.31% | ||
| ROE | 29.99% | ||
| ROCE | 21.54% | ||
| ROIC | 16% | ||
| ROICexc | 17.16% | ||
| ROICexgc | 18.29% | ||
| OM | 16.35% | ||
| PM (TTM) | 10.95% | ||
| GM | 24.87% | ||
| FCFM | 8.06% |
ROA(3y)9.33%
ROA(5y)5.38%
ROE(3y)27.92%
ROE(5y)15.08%
ROIC(3y)15.53%
ROIC(5y)14.15%
ROICexc(3y)16.81%
ROICexc(5y)15.29%
ROICexgc(3y)18.1%
ROICexgc(5y)16.74%
ROCE(3y)21.12%
ROCE(5y)18.93%
ROICexcg growth 3Y-2.54%
ROICexcg growth 5Y6.98%
ROICexc growth 3Y-0.75%
ROICexc growth 5Y7.34%
OM growth 3Y4.07%
OM growth 5Y7.89%
PM growth 3Y8.93%
PM growth 5Y15.05%
GM growth 3Y0.55%
GM growth 5Y2.94%
F-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 197.97% | ||
| Cap/Sales | 7.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.26% | ||
| Profit Quality | 73.6% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.51 |
F-Score6
WACC8.92%
ROIC/WACC1.79
Cap/Depr(3y)157.86%
Cap/Depr(5y)144.41%
Cap/Sales(3y)5.71%
Cap/Sales(5y)6.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.13%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%6.74%
EPS Next Y4.43%
EPS Next 2Y5.97%
EPS Next 3Y6.57%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-8.15%
Revenue Next Year-4.52%
Revenue Next 2Y-0.57%
Revenue Next 3Y0.7%
Revenue Next 5YN/A
EBIT growth 1Y9.42%
EBIT growth 3Y9.71%
EBIT growth 5Y11.83%
EBIT Next Year23.76%
EBIT Next 3Y10.86%
EBIT Next 5YN/A
FCF growth 1Y148.03%
FCF growth 3Y93.76%
FCF growth 5Y26.54%
OCF growth 1Y72.24%
OCF growth 3Y39.12%
OCF growth 5Y13.77%