CABOT CORP (CBT)

US1270551013 - Common Stock

92.01  +1.32 (+1.46%)

After market: 92.01 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CBT. CBT was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CBT. These ratings could make CBT a good candidate for value investing.



7

1. Profitability

1.1 Basic Checks

CBT had positive earnings in the past year.
CBT had a positive operating cash flow in the past year.
CBT had positive earnings in 4 of the past 5 years.
In the past 5 years CBT always reported a positive cash flow from operatings.

1.2 Ratios

CBT has a better Return On Assets (11.72%) than 94.05% of its industry peers.
With an excellent Return On Equity value of 32.58%, CBT belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.62%, CBT belongs to the best of the industry, outperforming 89.29% 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 7.47%.
Industry RankSector Rank
ROA 11.72%
ROE 32.58%
ROIC 12.62%
ROA(3y)8.48%
ROA(5y)4.41%
ROE(3y)27.87%
ROE(5y)12.94%
ROIC(3y)13.77%
ROIC(5y)11.62%

1.3 Margins

CBT has a better Profit Margin (11.03%) than 82.14% of its industry peers.
CBT has a Operating Margin of 14.19%. This is in the better half of the industry: CBT outperforms 76.19% of its industry peers.
In the last couple of years the Operating Margin of CBT has grown nicely.
CBT has a Gross Margin (22.32%) which is in line with its industry peers.
CBT's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 14.19%
PM (TTM) 11.03%
GM 22.32%
OM growth 3Y16.94%
OM growth 5Y2.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.31%
GM growth 5Y-1.6%

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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

CBT has an Altman-Z score of 3.73. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT has a Altman-Z score of 3.73. This is amongst the best in the industry. CBT outperforms 83.33% of its industry peers.
CBT has a debt to FCF ratio of 3.41. This is a good value and a sign of high solvency as CBT would need 3.41 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.41, CBT is doing good in the industry, outperforming 79.76% of the companies in the same industry.
CBT has a Debt/Equity ratio of 0.98. This is a neutral value indicating CBT is somewhat dependend on debt financing.
CBT's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. CBT is outperformed by 67.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.98
Debt/FCF 3.41
Altman-Z 3.73
ROIC/WACC1.53
WACC8.24%

2.3 Liquidity

CBT has a Current Ratio of 2.04. This indicates that CBT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.04, CBT is in line with its industry, outperforming 48.81% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that CBT should not have too much problems paying its short term obligations.
The Quick ratio of CBT (1.30) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.04
Quick Ratio 1.3

4

3. Growth

3.1 Past

CBT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.17%.
The Earnings Per Share has been growing slightly by 5.95% on average over the past years.
The Revenue has decreased by -9.12% in the past year.
CBT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.93% yearly.
EPS 1Y (TTM)0.17%
EPS 3Y37.49%
EPS 5Y5.95%
EPS growth Q2Q59.18%
Revenue 1Y (TTM)-9.12%
Revenue growth 3Y14.57%
Revenue growth 5Y3.93%
Revenue growth Q2Q-0.73%

3.2 Future

The Earnings Per Share is expected to grow by 15.70% on average over the next years. This is quite good.
CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.79% yearly.
EPS Next Y24.65%
EPS Next 2Y19.38%
EPS Next 3Y15.7%
EPS Next 5YN/A
Revenue Next Year1.52%
Revenue Next 2Y3.84%
Revenue Next 3Y3.79%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.44, CBT is valued correctly.
66.67% of the companies in the same industry are more expensive than CBT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CBT to the average of the S&P500 Index (24.76), we can say CBT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.00, the valuation of CBT can be described as reasonable.
Based on the Price/Forward Earnings ratio, CBT is valued cheaper than 84.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, CBT is valued a bit cheaper.
Industry RankSector Rank
PE 15.44
Fwd PE 12

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CBT is valued a bit cheaper than 75.00% of the companies in the same industry.
77.38% of the companies in the same industry are more expensive than CBT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.25
EV/EBITDA 8.43

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CBT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CBT's earnings are expected to grow with 15.70% in the coming years.
PEG (NY)0.63
PEG (5Y)2.6
EPS Next 2Y19.38%
EPS Next 3Y15.7%

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5. Dividend

5.1 Amount

CBT has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.31, CBT pays a bit more dividend than its industry peers.
CBT's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
Industry RankSector Rank
Dividend Yield 1.76%

5.2 History

The dividend of CBT has a limited annual growth rate of 3.84%.
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)3.84%
Div Incr Years12
Div Non Decr Years19

5.3 Sustainability

20.55% 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.
DP20.55%
EPS Next 2Y19.38%
EPS Next 3Y15.7%

CABOT CORP

NYSE:CBT (4/19/2024, 7:04:00 PM)

After market: 92.01 0 (0%)

92.01

+1.32 (+1.46%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.10B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.76%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 15.44
Fwd PE 12
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.63
PEG (5Y)2.6
Profitability
Industry RankSector Rank
ROA 11.72%
ROE 32.58%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.19%
PM (TTM) 11.03%
GM 22.32%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity 0.98
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.04
Quick Ratio 1.3
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.17%
EPS 3Y37.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.12%
Revenue growth 3Y14.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y