CABOT CORP (CBT) Stock Fundamental Analysis
NYSE:CBT - US1270551013 - Common Stock
81.3 USD
-1.64 (-1.98%)
Overall CBT gets a fundamental rating of 7 out of 10. We evaluated CBT against 84 industry peers in the Chemicals industry. CBT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CBT is cheap, but on the other hand it scores bad on growth. 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.
CBT had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 10.89%, CBT belongs to the top of the industry, outperforming 98.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.13%, CBT belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.67%, CBT belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
CBT had an Average Return On Invested Capital over the past 3 years of 15.53%. This is significantly above the industry average of 6.43%.
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
Looking at the Profit Margin, with a value of 10.96%, CBT belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
CBT's Profit Margin has improved in the last couple of years.
CBT's Operating Margin of 16.62% is amongst the best of the industry. CBT outperforms 84.52% of its industry peers.
In the last couple of years the Operating Margin of CBT has grown nicely.
With a Gross Margin value of 25.16%, CBT perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
CBT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.62% | ||
| 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
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.
Compared to 1 year ago, CBT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that CBT is not in any danger for bankruptcy at the moment.
The Altman-Z score of CBT (3.63) is better than 85.71% of its industry peers.
The Debt to FCF ratio of CBT is 3.49, which is a good value as it means it would take CBT, 3.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.49, CBT belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
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 | 3.63 |
ROIC/WACC1.76
WACC8.92%
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 of 2.13. This is comparable to the rest of the industry: CBT outperforms 54.76% of its industry peers.
A Quick Ratio of 1.41 indicates that CBT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.41, CBT is in line with its industry, outperforming 57.14% of the companies in the same 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.
CBT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.54% yearly.
The Revenue has decreased by -3.61% in the past year.
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)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
Based on estimates for the next years, CBT will show a small growth in Earnings Per Share. The EPS will grow by 6.65% on average per year.
CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.43% yearly.
EPS Next Y4.39%
EPS Next 2Y5.97%
EPS Next 3Y6.65%
EPS Next 5YN/A
Revenue Next Year-5.39%
Revenue Next 2Y-0.84%
Revenue Next 3Y0.43%
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.
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 11.05.
Compared to the rest of the industry, the Price/Earnings ratio of CBT indicates a rather cheap valuation: CBT is cheaper than 84.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, CBT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.25, which indicates a very decent valuation of CBT.
Based on the Price/Forward Earnings ratio, CBT is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
CBT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CBT is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 6.74 |
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)2.52
PEG (5Y)0.88
EPS Next 2Y5.97%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.28%.
Compared to an average industry Dividend Yield of 3.54, CBT pays a bit more dividend than its industry peers.
CBT's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| 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
22.73% 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.
DP22.73%
EPS Next 2Y5.97%
EPS Next 3Y6.65%
NYSE:CBT (8/25/2025, 3:21:19 PM)
81.3
-1.64 (-1.98%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.01%
Inst Owner Change-2.57%
Ins Owners1.1%
Ins Owner Change0.09%
Market Cap4.33B
Analysts73.33
Price Target89.76 (10.41%)
Short Float %4.1%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)2.62%
PT rev (3m)-3.56%
EPS NQ rev (1m)-3.16%
EPS NQ rev (3m)-11.31%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-6.76%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 10.25 | ||
| P/S | 1.13 | ||
| P/FCF | 12.43 | ||
| P/OCF | 6.65 | ||
| P/B | 2.81 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 6.74 |
EPS(TTM)7.36
EY9.05%
EPS(NY)7.93
Fwd EY9.75%
FCF(TTM)6.54
FCFY8.05%
OCF(TTM)12.22
OCFY15.03%
SpS71.71
BVpS28.97
TBVpS25.41
PEG (NY)2.52
PEG (5Y)0.88
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 | 3.63 |
F-Score6
WACC8.92%
ROIC/WACC1.76
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 Y4.39%
EPS Next 2Y5.97%
EPS Next 3Y6.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.61%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%-9.15%
Revenue Next Year-5.39%
Revenue Next 2Y-0.84%
Revenue Next 3Y0.43%
Revenue Next 5YN/A
EBIT growth 1Y4.62%
EBIT growth 3Y9.71%
EBIT growth 5Y11.83%
EBIT Next Year23.66%
EBIT Next 3Y10.93%
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%