CABOT CORP (CBT)
US1270551013 - Common Stock
Overall CBT gets a fundamental rating of 6 out of 10. We evaluated CBT against 83 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 has a decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 12.32%, CBT belongs to the top of the industry, outperforming 98.80% of the companies in the same industry.
With an excellent Return On Equity value of 32.41%, CBT belongs to the best of the industry, outperforming 97.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.69%, CBT belongs to the top of the industry, outperforming 92.77% 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 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 32.41% | ||
| ROIC | 13.69% |
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
Looking at the Profit Margin, with a value of 11.33%, CBT belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
With an excellent Operating Margin value of 14.94%, CBT belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
CBT's Operating Margin has improved in the last couple of years.
CBT's Gross Margin of 23.32% is in line compared to the rest of the industry. CBT outperforms 43.37% of its industry peers.
CBT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.94% | ||
| PM (TTM) | 11.33% | ||
| GM | 23.32% |
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%
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.
CBT has less shares outstanding than it did 1 year ago.
CBT has less shares outstanding than it did 5 years ago.
CBT has a better debt/assets ratio than last year.
2.2 Solvency
CBT has an Altman-Z score of 4.00. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT has a Altman-Z score of 4.00. This is amongst the best in the industry. CBT outperforms 86.75% of its industry peers.
The Debt to FCF ratio of CBT is 2.91, which is a good value as it means it would take CBT, 2.91 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CBT (2.91) is better than 84.34% of its industry peers.
CBT has a Debt/Equity ratio of 0.86. This is a neutral value indicating CBT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, CBT perfoms like the industry average, outperforming 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 4 |
ROIC/WACC1.71
WACC7.99%
2.3 Liquidity
A Current Ratio of 2.24 indicates that CBT has no problem at all paying its short term obligations.
CBT has a Current ratio (2.24) which is comparable to the rest of the industry.
A Quick Ratio of 1.47 indicates that CBT should not have too much problems paying its short term obligations.
CBT has a Quick ratio (1.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.67% over the past year.
The Earnings Per Share has been growing slightly by 5.95% on average over the past years.
The Revenue has decreased by -8.19% in the past year.
Measured over the past years, CBT shows a small growth in Revenue. The Revenue has been growing by 3.93% on average per year.
EPS 1Y (TTM)14.67%
EPS 3Y37.49%
EPS 5Y5.95%
EPS Q2Q%33.83%
Revenue 1Y (TTM)-8.19%
Revenue growth 3Y14.57%
Revenue growth 5Y3.93%
Sales Q2Q%-1.36%
3.2 Future
The Earnings Per Share is expected to grow by 16.16% on average over the next years. This is quite good.
Based on estimates for the next years, CBT will show a small growth in Revenue. The Revenue will grow by 3.26% on average per year.
EPS Next Y27.42%
EPS Next 2Y19.21%
EPS Next 3Y16.17%
EPS Next 5YN/A
Revenue Next Year0.4%
Revenue Next 2Y2.97%
Revenue Next 3Y3.26%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.24, the valuation of CBT can be described as correct.
73.49% of the companies in the same industry are more expensive than CBT, based on the Price/Earnings ratio.
CBT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
With a Price/Forward Earnings ratio of 12.78, CBT is valued correctly.
CBT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CBT is cheaper than 63.86% of the companies in the same industry.
CBT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CBT indicates a somewhat cheap valuation: CBT is cheaper than 78.31% of the companies listed in the same industry.
CBT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CBT is cheaper than 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.27 | ||
| EV/EBITDA | 8.52 |
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 a very decent profitability rating, which may justify a higher PE ratio.
CBT's earnings are expected to grow with 16.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)2.56
EPS Next 2Y19.21%
EPS Next 3Y16.17%
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 3.07, CBT pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, CBT is paying slightly less dividend.
| Industry Rank | Sector 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 Years33
5.3 Sustainability
CBT pays out 20.54% 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.
DP20.54%
EPS Next 2Y19.21%
EPS Next 3Y16.17%
CABOT CORP
NYSE:CBT (7/26/2024, 7:21:08 PM)
After market: 97.71 0 (0%)97.71
+0.54 (+0.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 12.78 | ||
| 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)0.56
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 32.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.94% | ||
| PM (TTM) | 11.33% | ||
| GM | 23.32% | ||
| 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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.47 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)14.67%
EPS 3Y37.49%
EPS 5Y
EPS Q2Q%
EPS Next Y27.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.19%
Revenue growth 3Y14.57%
Revenue growth 5Y
Sales 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