CABOT CORP (CBT) Stock Fundamental Analysis
USA - NYSE:CBT - US1270551013 - Common Stock
69.18 USD
-2.06 (-2.89%)
69.18 USD
0 (0%)
CBT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making CBT a very profitable company, without any liquidiy or solvency issues. CBT has a bad growth rate and is valued cheaply. CBT also has an excellent dividend rating. These ratings would make CBT suitable 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.
CBT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.89%, CBT belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
With an excellent Return On Equity value of 27.13%, CBT belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.67%, CBT belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CBT is significantly above the industry average of 6.36%.
The 3 year average ROIC (15.53%) for CBT is below the current ROIC(15.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 27.13% | ||
| ROIC | 15.67% |
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 better Profit Margin (10.96%) than 87.95% of its industry peers.
In the last couple of years the Profit Margin of CBT has grown nicely.
The Operating Margin of CBT (16.62%) is better than 84.34% of its industry peers.
CBT's Operating Margin has improved in the last couple of years.
CBT's Gross Margin of 25.16% is in line compared to the rest of the industry. CBT outperforms 46.99% of its industry peers.
CBT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.62% | ||
| PM (TTM) | 10.96% | ||
| GM | 25.16% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CBT is still creating some value.
The number of shares outstanding for CBT has been reduced compared to 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
CBT has an Altman-Z score of 3.46. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CBT (3.46) is better than 84.34% of its industry peers.
CBT has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as CBT would need 3.49 years to pay back of all of its debts.
CBT has a better Debt to FCF ratio (3.49) than 89.16% of its industry peers.
CBT has a Debt/Equity ratio of 0.78. This is a neutral value indicating CBT is somewhat dependend on debt financing.
The Debt to Equity ratio of CBT (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.78
WACC8.81%
2.3 Liquidity
CBT has a Current Ratio of 2.13. This indicates that CBT is financially healthy and has no problem in meeting its short term obligations.
CBT has a Current ratio (2.13) which is in line with its industry peers.
A Quick Ratio of 1.41 indicates that CBT should not have too much problems paying its short term obligations.
The Quick ratio of CBT (1.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.51% over the past year.
The Earnings Per Share has been growing by 12.54% on average over the past years. This is quite good.
The Revenue has decreased by -3.61% in the past 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)6.51%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%-1.04%
Revenue 1Y (TTM)-3.61%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-9.15%
3.2 Future
CBT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.48% yearly.
CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.14% yearly.
EPS Next Y3.85%
EPS Next 2Y5.56%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue Next Year-5.83%
Revenue Next 2Y-1.28%
Revenue Next 3Y0.14%
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
Based on the Price/Earnings ratio of 9.40, the valuation of CBT can be described as reasonable.
Based on the Price/Earnings ratio, CBT is valued cheaper than 85.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of CBT to the average of the S&P500 Index (27.02), we can say CBT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.79, the valuation of CBT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CBT indicates a rather cheap valuation: CBT is cheaper than 87.95% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CBT to the average of the S&P500 Index (22.57), we can say CBT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaper than 87.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CBT is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.58 | ||
| EV/EBITDA | 5.94 |
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.
CBT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)0.75
EPS Next 2Y5.56%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.38%.
CBT's Dividend Yield is a higher than the industry average which is at 3.61.
Compared to an average S&P500 Dividend Yield of 2.44, CBT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.51%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
CBT pays out 22.73% 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.
DP22.73%
EPS Next 2Y5.56%
EPS Next 3Y6.48%
69.18
-2.06 (-2.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.82%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change0.09%
Market Cap3.68B
Analysts73.33
Price Target89.76 (29.75%)
Short Float %5.32%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend1.7
Dividend Growth(5Y)4.51%
DP22.73%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.31%
Min EPS beat(2)1.43%
Max EPS beat(2)3.18%
EPS beat(4)3
Avg EPS beat(4)0.89%
Min EPS beat(4)-1.41%
Max EPS beat(4)3.18%
EPS beat(8)7
Avg EPS beat(8)4.26%
EPS beat(12)10
Avg EPS beat(12)2.6%
EPS beat(16)14
Avg EPS beat(16)5.1%
Revenue beat(2)0
Avg Revenue beat(2)-6.89%
Min Revenue beat(2)-9.48%
Max Revenue beat(2)-4.31%
Revenue beat(4)0
Avg Revenue beat(4)-5.23%
Min Revenue beat(4)-9.48%
Max Revenue beat(4)-1.96%
Revenue beat(8)1
Avg Revenue beat(8)-3.47%
Revenue beat(12)3
Avg Revenue beat(12)-3.65%
Revenue beat(16)6
Avg Revenue beat(16)-0.63%
PT rev (1m)0%
PT rev (3m)2.62%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 8.79 | ||
| P/S | 0.96 | ||
| P/FCF | 10.58 | ||
| P/OCF | 5.66 | ||
| P/B | 2.39 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 5.94 |
EPS(TTM)7.36
EY10.64%
EPS(NY)7.87
Fwd EY11.37%
FCF(TTM)6.54
FCFY9.46%
OCF(TTM)12.22
OCFY17.66%
SpS71.71
BVpS28.97
TBVpS25.41
PEG (NY)2.44
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.89% | ||
| ROE | 27.13% | ||
| ROCE | 20.47% | ||
| ROIC | 15.67% | ||
| ROICexc | 16.94% | ||
| ROICexgc | 18.09% | ||
| OM | 16.62% | ||
| PM (TTM) | 10.96% | ||
| GM | 25.16% | ||
| FCFM | 9.12% |
ROA(3y)9.33%
ROA(5y)5.38%
ROE(3y)27.92%
ROE(5y)15.08%
ROIC(3y)15.53%
ROIC(5y)14.15%
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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 200% | ||
| Cap/Sales | 7.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.8% | ||
| Profit Quality | 83.25% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.46 |
F-Score6
WACC8.81%
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)6.51%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%-1.04%
EPS Next Y3.85%
EPS Next 2Y5.56%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.61%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-9.15%
Revenue Next Year-5.83%
Revenue Next 2Y-1.28%
Revenue Next 3Y0.14%
Revenue Next 5YN/A
EBIT growth 1Y4.62%
EBIT growth 3Y9.71%
EBIT growth 5Y11.83%
EBIT Next Year24.14%
EBIT Next 3Y11.12%
EBIT Next 5YN/A
FCF growth 1Y13.73%
FCF growth 3Y93.76%
FCF growth 5Y26.54%
OCF growth 1Y15.66%
OCF growth 3Y39.12%
OCF growth 5Y13.77%