CABOT CORP (CBT) Stock Fundamental Analysis
NYSE:CBT - New York Stock Exchange, Inc. - US1270551013 - Common Stock - Currency: USD
Overall CBT gets a fundamental rating of 6 out of 10. We evaluated CBT against 85 industry peers in the Chemicals industry. While CBT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CBT is valued quite cheap, but it does not seem to be growing. Finally 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.
Of the past 5 years CBT 4 years were profitable.
In the past 5 years CBT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.31%, CBT belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
CBT's Return On Equity of 29.99% is amongst the best of the industry. CBT outperforms 97.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.00%, CBT belongs to the top of the industry, outperforming 97.65% 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 6.84%.
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
CBT has a Profit Margin of 10.95%. This is amongst the best in the industry. CBT outperforms 87.06% of its industry peers.
CBT's Profit Margin has improved in the last couple of years.
CBT has a better Operating Margin (16.35%) than 81.18% of its industry peers.
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.
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
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 3.58. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT has a better Altman-Z score (3.58) than 80.00% 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 84.71% of its industry peers.
CBT has a Debt/Equity ratio of 0.90. This is a neutral value indicating CBT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.90, CBT is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.78
WACC8.97%
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 50.59% of its industry peers.
A Quick Ratio of 1.30 indicates that CBT should not have too much problems paying its short term obligations.
The Quick ratio of CBT (1.30) is comparable to the rest of the industry.
| 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%.
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 6.90% on average over the next years.
Based on estimates for the next years, CBT will show a small growth in Revenue. The Revenue will grow by 0.56% on average per year.
EPS Next Y4.29%
EPS Next 2Y6.04%
EPS Next 3Y6.9%
EPS Next 5YN/A
Revenue Next Year-4.72%
Revenue Next 2Y-0.78%
Revenue Next 3Y0.56%
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 10.63 indicates a reasonable valuation of CBT.
Based on the Price/Earnings ratio, CBT is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
CBT is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of CBT.
78.82% of the companies in the same industry are more expensive than CBT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.19. CBT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaper than 84.71% of the companies in the same industry.
83.53% 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 | 13.38 | ||
| EV/EBITDA | 6.48 |
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)2.48
PEG (5Y)0.85
EPS Next 2Y6.04%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.28%.
Compared to an average industry Dividend Yield of 3.53, CBT pays a bit more dividend than its industry peers.
CBT's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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 22.20% 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.
DP22.2%
EPS Next 2Y6.04%
EPS Next 3Y6.9%
78.44
-0.62 (-0.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.09%
Inst Owner Change0%
Ins Owners1.07%
Ins Owner Change0.09%
Market Cap4.21B
Analysts73.33
Price Target87.47 (11.51%)
Short Float %4.18%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)0%
PT rev (3m)-17.35%
EPS NQ rev (1m)-1.59%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-3.18%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-8.49%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-6.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.88 | ||
| P/S | 1.08 | ||
| P/FCF | 13.38 | ||
| P/OCF | 6.93 | ||
| P/B | 2.95 | ||
| P/tB | 3.39 | ||
| EV/EBITDA | 6.48 |
EPS(TTM)7.38
EY9.41%
EPS(NY)7.94
Fwd EY10.12%
FCF(TTM)5.86
FCFY7.48%
OCF(TTM)11.32
OCFY14.43%
SpS72.75
BVpS26.56
TBVpS23.16
PEG (NY)2.48
PEG (5Y)0.85
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 | 3.58 |
F-Score6
WACC8.97%
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 Y4.29%
EPS Next 2Y6.04%
EPS Next 3Y6.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-8.15%
Revenue Next Year-4.72%
Revenue Next 2Y-0.78%
Revenue Next 3Y0.56%
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%