CABOT CORP (CBT) Stock Fundamental Analysis
USA - NYSE:CBT - US1270551013 - Common Stock
79 USD
-2.47 (-3.03%)
79 USD
0 (0%)
Overall CBT gets a fundamental rating of 7 out of 10. We evaluated CBT against 83 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 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.
CBT had a positive operating cash flow in the past year.
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
The Return On Assets of CBT (10.89%) is better than 98.80% of its industry peers.
The Return On Equity of CBT (27.13%) is better than 95.18% of its industry peers.
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 6.34%.
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
With an excellent Profit Margin value of 10.96%, CBT belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
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.
The Gross Margin of CBT (25.16%) 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 | 16.62% | ||
| 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
CBT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CBT has been reduced compared to 1 year ago.
CBT has less shares outstanding than it did 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 3.57. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT has a better Altman-Z score (3.57) than 85.54% 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 Debt to FCF ratio of 3.49. This is amongst the best in the industry. CBT outperforms 89.16% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that CBT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, CBT is in line with its industry, outperforming 46.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.74
WACC9.01%
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.
The Current ratio of CBT (2.13) is comparable to the rest of the industry.
CBT has a Quick Ratio of 1.41. This is a normal value and indicates that CBT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.41, CBT is in line with its industry, outperforming 57.83% 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.
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 6.65% yearly.
The Revenue is expected to grow by 0.23% on average over the next years.
EPS Next Y4.39%
EPS Next 2Y5.97%
EPS Next 3Y6.65%
EPS Next 5YN/A
Revenue Next Year-5.81%
Revenue Next 2Y-1.19%
Revenue Next 3Y0.23%
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
Based on the Price/Earnings ratio of 10.73, the valuation of CBT can be described as reasonable.
Based on the Price/Earnings ratio, CBT is valued cheaply inside the industry as 85.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CBT is valued rather cheaply.
A Price/Forward Earnings ratio of 9.96 indicates a reasonable valuation of CBT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CBT indicates a rather cheap valuation: CBT is cheaper than 85.54% 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 (22.73), we can say CBT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaply inside the industry as 87.95% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CBT is valued cheaper than 86.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 6.47 |
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.
The excellent profitability rating of CBT may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)0.86
EPS Next 2Y5.97%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.21%.
CBT's Dividend Yield is a higher than the industry average which is at 3.43.
CBT's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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
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 2Y5.97%
EPS Next 3Y6.65%
79
-2.47 (-3.03%)
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 Cap4.20B
Analysts73.33
Price Target89.76 (13.62%)
Short Float %4.1%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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)2.62%
EPS NQ rev (1m)-3.17%
EPS NQ rev (3m)-6.02%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-1.66%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 9.96 | ||
| P/S | 1.1 | ||
| P/FCF | 12.08 | ||
| P/OCF | 6.47 | ||
| P/B | 2.73 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | 6.47 |
EPS(TTM)7.36
EY9.32%
EPS(NY)7.93
Fwd EY10.04%
FCF(TTM)6.54
FCFY8.28%
OCF(TTM)12.22
OCFY15.47%
SpS71.71
BVpS28.97
TBVpS25.41
PEG (NY)2.45
PEG (5Y)0.86
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 | 3.57 |
F-Score6
WACC9.01%
ROIC/WACC1.74
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-5.81%
Revenue Next 2Y-1.19%
Revenue Next 3Y0.23%
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%