CABOT CORP (CBT) Stock Fundamental Analysis
USA - NYSE:CBT - US1270551013 - Common Stock
61.48 USD
+2.15 (+3.62%)
61.48 USD
0 (0%)
CBT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making CBT a very profitable company, without any liquidiy or solvency issues. CBT is cheap, but on the other hand it scores bad on growth. CBT also has an excellent dividend rating. These ratings would make CBT suitable 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.
CBT had positive earnings in 4 of the past 5 years.
CBT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CBT has a Return On Assets of 10.89%. This is amongst the best in the industry. CBT outperforms 98.78% of its industry peers.
The Return On Equity of CBT (27.13%) is better than 95.12% of its industry peers.
CBT has a better Return On Invested Capital (15.67%) than 96.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBT is significantly above the industry average of 6.23%.
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 87.80% of the companies in the same industry.
In the last couple of years the Profit Margin of CBT has grown nicely.
CBT has a Operating Margin of 16.62%. This is amongst the best in the industry. CBT outperforms 84.15% of its industry peers.
CBT's Operating Margin has improved in the last couple of years.
CBT's Gross Margin of 25.16% is in line compared to the rest of the industry. CBT outperforms 45.12% 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
CBT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CBT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CBT has an Altman-Z score of 3.30. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT's Altman-Z score of 3.30 is amongst the best of the industry. CBT outperforms 82.93% 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 better Debt to FCF ratio (3.49) than 89.02% 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 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.84
WACC8.52%
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 (2.13) which 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 the better half of the industry, outperforming 60.98% 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 2.83% over the past year.
Measured over the past years, CBT shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.53% on average per year.
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
CBT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.42% yearly.
CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
EPS Next Y8.79%
EPS Next 2Y8.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.41%
Revenue Next 2Y3.23%
Revenue Next 3YN/A
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
CBT is valuated reasonably with a Price/Earnings ratio of 8.47.
Based on the Price/Earnings ratio, CBT is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.83. CBT is valued rather cheaply when compared to this.
CBT is valuated cheaply with a Price/Forward Earnings ratio of 7.78.
Based on the Price/Forward Earnings ratio, CBT is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 32.68. CBT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaper than 91.46% of the companies in the same industry.
87.80% 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 | 9.4 | ||
| EV/EBITDA | 5.14 |
4.3 Compensation for Growth
CBT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CBT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)0.3
EPS Next 2Y8.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.98%.
The stock price of CBT dropped by -21.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.11, CBT pays a bit more dividend than its industry peers.
CBT's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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 2Y8.42%
EPS Next 3YN/A
61.48
+2.15 (+3.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.82%
Inst Owner Change-0.69%
Ins Owners1.11%
Ins Owner Change0.09%
Market Cap3.27B
Revenue(TTM)N/A
Net Income(TTM)418.00M
Analysts73.33
Price Target89.25 (45.17%)
Short Float %3.09%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)-0.57%
PT rev (3m)2.04%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 7.78 | ||
| P/S | 0.86 | ||
| P/FCF | 9.4 | ||
| P/OCF | 5.03 | ||
| P/B | 2.12 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 5.14 |
EPS(TTM)7.26
EY11.81%
EPS(NY)7.9
Fwd EY12.85%
FCF(TTM)6.54
FCFY10.64%
OCF(TTM)12.22
OCFY19.87%
SpS71.71
BVpS28.97
TBVpS25.41
PEG (NY)0.96
PEG (5Y)0.3
Graham Number68.79
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 | 3.3 |
F-Score6
WACC8.52%
ROIC/WACC1.84
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 3YN/A
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 3YN/A
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 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%
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 9 / 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 7 / 10 and the dividend payout ratio is 22.73%.