CABOT CORP (CBT) Stock Fundamental Analysis
USA - NYSE:CBT - US1270551013 - Common Stock
77.51 USD
-0.58 (-0.74%)
77.51 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. CBT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CBT has a bad growth rate and is valued cheaply. Finally CBT also has an excellent dividend rating. This makes CBT very considerable for value and dividend 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.
Each year in the past 5 years CBT had a positive operating cash flow.
1.2 Ratios
CBT has a better Return On Assets (10.89%) than 98.80% 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 95.18% of the companies in the same industry.
CBT's Return On Invested Capital of 15.67% is amongst the best of the industry. CBT outperforms 96.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBT is significantly above the industry average of 6.34%.
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.
CBT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.62%, CBT belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
In the last couple of years the Operating Margin of CBT has grown nicely.
CBT has a Gross Margin of 25.16%. This is comparable to the rest of the industry: CBT outperforms 46.99% of its industry peers.
In the last couple of years the Gross Margin of CBT has grown nicely.
| 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.
Compared to 1 year ago, CBT has less shares outstanding
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
An Altman-Z score of 3.56 indicates that CBT is not in any danger for bankruptcy at the moment.
The Altman-Z score of CBT (3.56) is better than 84.34% 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.
With an excellent Debt to FCF ratio value of 3.49, CBT belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
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 | 3.56 |
ROIC/WACC1.73
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.13 indicates that CBT has no problem at all paying its short term obligations.
CBT has a Current ratio of 2.13. This is comparable to the rest of the industry: CBT outperforms 55.42% of its industry peers.
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
CBT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.51%.
CBT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.54% yearly.
Looking at the last year, CBT shows a decrease in Revenue. The Revenue has decreased by -3.61% in the last 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.
Based on estimates for the next years, CBT will show a small growth in Revenue. The Revenue will grow by 0.23% on average per year.
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
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
A Price/Earnings ratio of 10.53 indicates a reasonable valuation of CBT.
86.75% of the companies in the same industry are more expensive than CBT, based on the Price/Earnings ratio.
CBT is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
CBT is valuated reasonably with a Price/Forward Earnings ratio of 9.78.
Based on the Price/Forward Earnings ratio, CBT is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
CBT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 9.78 |
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 | 11.85 | ||
| EV/EBITDA | 6.41 |
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)2.4
PEG (5Y)0.84
EPS Next 2Y5.97%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.21%.
Compared to an average industry Dividend Yield of 3.43, CBT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CBT has a dividend comparable with the average S&P500 company.
| 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 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%
77.51
-0.58 (-0.74%)
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 Cap4.12B
Analysts73.33
Price Target89.76 (15.8%)
Short Float %5.66%
Short Ratio8.16
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 | 10.53 | ||
| Fwd PE | 9.78 | ||
| P/S | 1.08 | ||
| P/FCF | 11.85 | ||
| P/OCF | 6.34 | ||
| P/B | 2.68 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)7.36
EY9.5%
EPS(NY)7.93
Fwd EY10.23%
FCF(TTM)6.54
FCFY8.44%
OCF(TTM)12.22
OCFY15.76%
SpS71.71
BVpS28.97
TBVpS25.41
PEG (NY)2.4
PEG (5Y)0.84
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 | 3.56 |
F-Score6
WACC9.05%
ROIC/WACC1.73
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%