CABOT CORP (CBT) Stock Fundamental Analysis
USA - NYSE:CBT - US1270551013 - Common Stock
59.45 USD
-2.15 (-3.49%)
59.45 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. CBT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CBT is valued quite cheap, but it does not seem to be growing. CBT also has an excellent dividend rating. These ratings could make CBT a good candidate for value and dividend investing.
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.
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 97.56% of its industry peers.
CBT's Return On Equity of 27.13% is amongst the best of the industry. CBT outperforms 95.12% of its industry peers.
CBT's Return On Invested Capital of 15.67% is amongst the best of the industry. CBT outperforms 96.34% of its industry peers.
CBT had an Average Return On Invested Capital over the past 3 years of 15.53%. This is significantly above the industry average of 6.13%.
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
CBT's Profit Margin of 10.96% is amongst the best of the industry. CBT outperforms 89.02% of its industry peers.
In the last couple of years the Profit Margin of CBT has grown nicely.
CBT's Operating Margin of 16.62% is amongst the best of the industry. CBT outperforms 82.93% 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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CBT 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 3.33. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CBT (3.33) is better than 81.71% 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.
Looking at the Debt to FCF ratio, with a value of 3.49, CBT belongs to the top of the industry, outperforming 89.02% 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 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.82
WACC8.62%
2.3 Liquidity
A Current Ratio of 2.13 indicates that CBT has no problem at all paying 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.
The Quick ratio of CBT (1.41) 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
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
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.
4. Valuation
4.1 Price/Earnings Ratio
CBT is valuated reasonably with a Price/Earnings ratio of 8.19.
Based on the Price/Earnings ratio, CBT is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
CBT is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
CBT is valuated cheaply with a Price/Forward Earnings ratio of 7.53.
Based on the Price/Forward Earnings ratio, CBT is valued cheaper than 90.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CBT to the average of the S&P500 Index (34.62), we can say CBT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CBT is valued cheaper than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.09 | ||
| EV/EBITDA | 5.29 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)0.29
EPS Next 2Y8.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CBT has falen by -28.32%. 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 4.00, CBT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CBT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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 earnings are growing more, so the dividend growth is sustainable.
DP22.73%
EPS Next 2Y8.42%
EPS Next 3YN/A
59.45
-2.15 (-3.49%)
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 Change-1.73%
Market Cap3.16B
Revenue(TTM)N/A
Net Income(TTM)418.00M
Analysts73.33
Price Target89.25 (50.13%)
Short Float %3.09%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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)0%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.53 | ||
| P/S | 0.83 | ||
| P/FCF | 9.09 | ||
| P/OCF | 4.87 | ||
| P/B | 2.05 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 5.29 |
EPS(TTM)7.26
EY12.21%
EPS(NY)7.9
Fwd EY13.28%
FCF(TTM)6.54
FCFY11%
OCF(TTM)12.22
OCFY20.55%
SpS71.71
BVpS28.97
TBVpS25.41
PEG (NY)0.93
PEG (5Y)0.29
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 | 3.33 |
F-Score6
WACC8.62%
ROIC/WACC1.82
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%.