CABOT CORP (CBT) Stock Fundamental Analysis
NYSE:CBT - New York Stock Exchange, Inc. - US1270551013 - Common Stock - Currency: USD
CBT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While CBT has a great profitability rating, there are some minor concerns on its financial health. CBT is cheap, but on the other hand it scores bad on growth. 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.
CBT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CBT had a positive operating cash flow.
1.2 Ratios
CBT's Return On Assets of 11.31% is amongst the best of the industry. CBT outperforms 97.65% 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 97.65% 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 97.65% 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 7.01%.
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
CBT has a Profit Margin of 10.95%. This is amongst the best in the industry. CBT outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of CBT has grown nicely.
CBT has a Operating Margin of 16.35%. This is amongst the best in the industry. CBT outperforms 81.18% of its industry peers.
In the last couple of years the Operating Margin of CBT has grown nicely.
With a Gross Margin value of 24.87%, CBT perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
CBT's Gross Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, CBT has less shares outstanding
CBT has a better debt/assets ratio than last year.
2.2 Solvency
CBT has an Altman-Z score of 3.52. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT has a Altman-Z score of 3.52. This is amongst the best in the industry. CBT outperforms 82.35% 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 83.53% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that CBT is somewhat dependend on debt financing.
CBT has a worse Debt to Equity ratio (0.90) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.52 |
ROIC/WACC1.78
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.96 indicates that CBT should not have too much problems paying its short term obligations.
CBT has a Current ratio of 1.96. This is comparable to the rest of the industry: CBT outperforms 52.94% of its industry peers.
CBT has a Quick Ratio of 1.30. This is a normal value and indicates that CBT is financially healthy and should not expect problems in meeting its short term obligations.
CBT has a Quick ratio of 1.30. This is comparable to the rest of the industry: CBT outperforms 57.65% 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.
The Earnings Per Share has been growing by 12.54% on average over the past years. This is quite good.
CBT shows a decrease in Revenue. In the last year, the revenue decreased by -0.05%.
Measured over the past years, CBT shows a small growth in Revenue. The Revenue has been growing by 3.66% on average per year.
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
The Earnings Per Share is expected to grow by 6.57% on average over the next years.
The Revenue is expected to grow by 0.59% on average over the next years.
EPS Next Y4.43%
EPS Next 2Y5.97%
EPS Next 3Y6.57%
EPS Next 5YN/A
Revenue Next Year-4.57%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.59%
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
CBT is valuated reasonably with a Price/Earnings ratio of 10.01.
89.41% of the companies in the same industry are more expensive than CBT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.03. CBT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.32 indicates a reasonable valuation of CBT.
Based on the Price/Forward Earnings ratio, CBT is valued a bit cheaper than the industry average as 78.82% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.94. CBT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaper than 85.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CBT is valued cheaper than 81.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CBT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)0.8
EPS Next 2Y5.97%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.39%. 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 3.70.
CBT's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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
CBT pays out 22.20% of its income as dividend. This is a sustainable payout ratio.
The dividend of CBT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.2%
EPS Next 2Y5.97%
EPS Next 3Y6.57%
NYSE:CBT (5/22/2025, 12:29:49 PM)
73.9
+0.53 (+0.72%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change-2.31%
Ins Owners1.14%
Ins Owner Change1.15%
Market Cap4.01B
Analysts73.33
Price Target93.08 (25.95%)
Short Float %4.84%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)-12.05%
PT rev (3m)-18.89%
EPS NQ rev (1m)-5.35%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)-2.92%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)-5.39%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)-6.42%
Revenue NY rev (3m)-7.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 9.32 | ||
| P/S | 1.03 | ||
| P/FCF | 12.72 | ||
| P/OCF | 6.59 | ||
| P/B | 2.81 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)7.38
EY9.99%
EPS(NY)7.93
Fwd EY10.73%
FCF(TTM)5.81
FCFY7.86%
OCF(TTM)11.21
OCFY15.17%
SpS72.08
BVpS26.32
TBVpS22.94
PEG (NY)2.26
PEG (5Y)0.8
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 | 3.52 |
F-Score6
WACC8.99%
ROIC/WACC1.78
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-4.57%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.59%
Revenue Next 5YN/A
EBIT growth 1Y9.42%
EBIT growth 3Y9.71%
EBIT growth 5Y11.83%
EBIT Next Year27.61%
EBIT Next 3Y12.78%
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%