CABOT CORP (CBT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CBT - US1270551013 - Common Stock
65.19 USD
+1.09 (+1.7%)
Taking everything into account, CBT scores 7 out of 10 in our fundamental rating. CBT was compared to 81 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 cheap, but on the other hand it scores bad on growth. These ratings could make CBT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
CBT had positive earnings in the past year.
In the past year CBT had a positive cash flow from operations.
Of the past 5 years CBT 4 years were profitable.
CBT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CBT has a better Return On Assets (10.89%) than 96.30% of its industry peers.
Looking at the Return On Equity, with a value of 27.13%, CBT belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
The Return On Invested Capital of CBT (15.67%) is better than 96.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBT is significantly above the industry average of 6.15%.
The last Return On Invested Capital (15.67%) for CBT is above the 3 year average (15.53%), which is a sign of increasing profitability.
| 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 87.65% of the companies in the same industry.
CBT's Profit Margin has improved in the last couple of years.
The Operating Margin of CBT (16.62%) is better than 82.72% of its industry peers.
In the last couple of years the Operating Margin of CBT has grown nicely.
CBT has a Gross Margin (25.16%) 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 | 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.
There is no outstanding debt for CBT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.36 indicates that CBT is not in any danger for bankruptcy at the moment.
The Altman-Z score of CBT (3.36) is better than 85.19% 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.
CBT's Debt to FCF ratio of 3.49 is amongst the best of the industry. CBT outperforms 88.89% 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.
CBT has a Debt to Equity ratio (0.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 3.36 |
ROIC/WACC1.79
WACC8.75%
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 comparable to the rest of the industry.
A Quick Ratio of 1.41 indicates that CBT should not have too much problems paying its short term obligations.
CBT has a Quick ratio (1.41) which 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 2.83% over the past year.
The Earnings Per Share has been growing by 28.53% on average over the past years. This is a very strong growth
EPS 1Y (TTM)2.83%
EPS 3Y5.06%
EPS 5Y28.53%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.19%
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 2.32% on average per year.
Based on estimates for the next years, CBT will show a small growth in Revenue. The Revenue will grow by 0.43% on average per year.
EPS Next Y8.79%
EPS Next 2Y8.42%
EPS Next 3Y2.32%
EPS Next 5YN/A
Revenue Next Year3.41%
Revenue Next 2Y3.23%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.98, the valuation of CBT can be described as very reasonable.
Based on the Price/Earnings ratio, CBT is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.41. CBT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.25, the valuation of CBT can be described as reasonable.
Based on the Price/Forward Earnings ratio, CBT is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CBT to the average of the S&P500 Index (35.40), we can say CBT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaply inside the industry as 88.89% 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 83.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 5.43 |
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)1.02
PEG (5Y)0.31
EPS Next 2Y8.42%
EPS Next 3Y2.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, CBT has a reasonable but not impressive dividend return.
In the last 3 months the price of CBT has falen by -20.91%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.88, CBT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CBT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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
22.73% of the earnings are spent on dividend by CBT. This is a low number and sustainable payout ratio.
The dividend of CBT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.73%
EPS Next 2Y8.42%
EPS Next 3Y2.32%
NYSE:CBT (12/5/2025, 3:34:48 PM)
65.19
+1.09 (+1.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.82%
Inst Owner Change0.74%
Ins Owners1.11%
Ins Owner Change4.44%
Market Cap3.44B
Revenue(TTM)N/A
Net Income(TTM)418.00M
Analysts73.33
Price Target71.66 (9.92%)
Short Float %3.19%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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)-20.17%
PT rev (3m)-20.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 8.25 | ||
| P/S | 0.9 | ||
| P/FCF | 9.9 | ||
| P/OCF | 5.3 | ||
| P/B | 2.24 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 5.43 |
EPS(TTM)7.26
EY11.14%
EPS(NY)7.9
Fwd EY12.12%
FCF(TTM)6.59
FCFY10.1%
OCF(TTM)12.3
OCFY18.87%
SpS72.2
BVpS29.16
TBVpS25.59
PEG (NY)1.02
PEG (5Y)0.31
Graham Number69.02
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%
ROICexgc growth 3Y-2.54%
ROICexgc 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 | 3.36 |
F-Score6
WACC8.75%
ROIC/WACC1.79
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)2.83%
EPS 3Y5.06%
EPS 5Y28.53%
EPS Q2Q%-5.56%
EPS Next Y8.79%
EPS Next 2Y8.42%
EPS Next 3Y2.32%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.19%
Revenue Next Year3.41%
Revenue Next 2Y3.23%
Revenue Next 3Y0.43%
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 5Y6.74%
FCF growth 1Y13.73%
FCF growth 3Y93.76%
FCF growth 5Y26.54%
OCF growth 1Y15.66%
OCF growth 3Y39.12%
OCF growth 5Y13.77%
CABOT CORP / CBT FAQ
What is the ChartMill fundamental rating of CABOT CORP (CBT) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CBT.
Can you provide the valuation status for CABOT CORP?
ChartMill assigns a valuation rating of 8 / 10 to CABOT CORP (CBT). This can be considered as Undervalued.
Can you provide the profitability details for CABOT CORP?
CABOT CORP (CBT) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for CBT stock?
The Earnings per Share (EPS) of CABOT CORP (CBT) is expected to grow by 8.79% in the next year.
Can you provide the dividend sustainability for CBT stock?
The dividend rating of CABOT CORP (CBT) is 6 / 10 and the dividend payout ratio is 22.73%.