CABOT CORP (CBT) Stock Fundamental Analysis
NYSE:CBT - New York Stock Exchange, Inc. - US1270551013 - Common Stock - Currency: USD
CBT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CBT. Finally CBT also has an excellent dividend rating. These ratings could make CBT a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year CBT was profitable.
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
With an excellent Return On Assets value of 11.45%, CBT belongs to the best of the industry, outperforming 97.65% of the companies in the same industry.
CBT's Return On Equity of 30.53% is amongst the best of the industry. CBT outperforms 97.65% of its industry peers.
CBT has a better Return On Invested Capital (16.70%) than 97.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBT is significantly above the industry average of 7.10%.
The last Return On Invested Capital (16.70%) for CBT is above the 3 year average (15.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.45% | ||
| ROE | 30.53% | ||
| ROIC | 16.7% |
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 (10.45%) is better than 89.41% of its industry peers.
CBT's Profit Margin has improved in the last couple of years.
The Operating Margin of CBT (15.86%) is better than 84.71% of its industry peers.
In the last couple of years the Operating Margin of CBT has grown nicely.
CBT has a Gross Margin (24.48%) which is in line with its industry peers.
CBT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.86% | ||
| PM (TTM) | 10.45% | ||
| GM | 24.48% |
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) well above the Cost of Capital (WACC), CBT is creating value.
The number of shares outstanding for CBT has been reduced compared to 1 year ago.
CBT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CBT has an improved debt to assets ratio.
2.2 Solvency
CBT has an Altman-Z score of 3.72. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.72, CBT belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
The Debt to FCF ratio of CBT is 2.68, which is a good value as it means it would take CBT, 2.68 years of fcf income to pay off all of its debts.
CBT has a better Debt to FCF ratio (2.68) than 88.24% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that CBT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, CBT is not doing good in the industry: 62.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.95
WACC8.58%
2.3 Liquidity
A Current Ratio of 2.00 indicates that CBT has no problem at all paying its short term obligations.
The Current ratio of CBT (2.00) is comparable to the rest of the industry.
CBT has a Quick Ratio of 1.29. This is a normal value and indicates that CBT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CBT (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.81% 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.
CBT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.71%.
The Revenue has been growing slightly by 3.66% on average over the past years.
EPS 1Y (TTM)21.81%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%12.82%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-0.31%
3.2 Future
Based on estimates for the next years, CBT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.75% on average per year.
CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y7.57%
EPS Next 2Y8.04%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue Next Year1.9%
Revenue Next 2Y2.67%
Revenue Next 3Y2.92%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.82 indicates a reasonable valuation of CBT.
81.18% of the companies in the same industry are more expensive than CBT, based on the Price/Earnings ratio.
CBT is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.53, which indicates a very decent valuation of CBT.
Based on the Price/Forward Earnings ratio, CBT is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
CBT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CBT indicates a rather cheap valuation: CBT is cheaper than 81.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
CBT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CBT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)0.86
EPS Next 2Y8.04%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
CBT's Dividend Yield is a higher than the industry average which is at 3.80.
Compared to an average S&P500 Dividend Yield of 2.45, CBT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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
22.78% 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.
DP22.78%
EPS Next 2Y8.04%
EPS Next 3Y8.75%
78.54
-0.18 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change0.42%
Ins Owners1.14%
Ins Owner Change3.95%
Market Cap4.26B
Analysts73.33
Price Target94.35 (20.13%)
Short Float %4.53%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend1.7
Dividend Growth(5Y)4.51%
DP22.78%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.52%
Min EPS beat(2)-1.41%
Max EPS beat(2)0.36%
EPS beat(4)3
Avg EPS beat(4)3.85%
Min EPS beat(4)-1.41%
Max EPS beat(4)10.27%
EPS beat(8)6
Avg EPS beat(8)2.62%
EPS beat(12)10
Avg EPS beat(12)4.54%
EPS beat(16)14
Avg EPS beat(16)8.23%
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-5.16%
Max Revenue beat(2)-1.96%
Revenue beat(4)1
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-5.16%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-4.25%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)8
Avg Revenue beat(16)1.4%
PT rev (1m)-11.9%
PT rev (3m)-23.4%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.63%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.53 | ||
| P/S | 1.07 | ||
| P/FCF | 9.53 | ||
| P/OCF | 5.99 | ||
| P/B | 3.12 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)7.26
EY9.24%
EPS(NY)8.24
Fwd EY10.49%
FCF(TTM)8.24
FCFY10.5%
OCF(TTM)13.11
OCFY16.7%
SpS73.61
BVpS25.19
TBVpS21.8
PEG (NY)1.43
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.45% | ||
| ROE | 30.53% | ||
| ROCE | 21.87% | ||
| ROIC | 16.7% | ||
| ROICexc | 17.79% | ||
| ROICexgc | 19.03% | ||
| OM | 15.86% | ||
| PM (TTM) | 10.45% | ||
| GM | 24.48% | ||
| FCFM | 11.2% |
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 Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.68 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 179.59% | ||
| Cap/Sales | 6.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.15% | ||
| Profit Quality | 107.19% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.72 |
F-Score6
WACC8.58%
ROIC/WACC1.95
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)21.81%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%12.82%
EPS Next Y7.57%
EPS Next 2Y8.04%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue 1Y (TTM)1.71%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-0.31%
Revenue Next Year1.9%
Revenue Next 2Y2.67%
Revenue Next 3Y2.92%
Revenue Next 5YN/A
EBIT growth 1Y13.64%
EBIT growth 3Y9.71%
EBIT growth 5Y11.83%
EBIT Next Year27.61%
EBIT Next 3Y12.78%
EBIT Next 5YN/A
FCF growth 1Y3080%
FCF growth 3Y93.76%
FCF growth 5Y26.54%
OCF growth 1Y253.73%
OCF growth 3Y39.12%
OCF growth 5Y13.77%