CABOT CORP (CBT)
US1270551013 - Common Stock
CBT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. CBT gets an excellent profitability rating and is at the same time showing great financial health properties. CBT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes CBT very considerable for value and quality 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.
Each year in the past 5 years CBT had a positive operating cash flow.
1.2 Ratios
CBT's Return On Assets of 13.13% is amongst the best of the industry. CBT outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 34.92%, CBT belongs to the best of the industry, outperforming 98.81% of the companies in the same industry.
CBT has a better Return On Invested Capital (14.47%) than 95.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CBT is significantly above the industry average of 6.35%.
The 3 year average ROIC (13.77%) for CBT is below the current ROIC(14.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.13% | ||
| ROE | 34.92% | ||
| ROIC | 14.47% |
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 11.87%, CBT belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
CBT's Operating Margin of 15.31% is amongst the best of the industry. CBT outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of CBT has grown nicely.
The Gross Margin of CBT (23.88%) is comparable to the rest of the industry.
CBT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.31% | ||
| PM (TTM) | 11.87% | ||
| GM | 23.88% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CBT is creating value.
The number of shares outstanding for CBT has been reduced compared to 1 year ago.
Compared to 5 years ago, CBT has less shares outstanding
The debt/assets ratio for CBT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.09 indicates that CBT is not in any danger for bankruptcy at the moment.
CBT has a better Altman-Z score (4.09) than 85.71% of its industry peers.
CBT has a debt to FCF ratio of 2.86. This is a good value and a sign of high solvency as CBT would need 2.86 years to pay back of all of its debts.
CBT has a Debt to FCF ratio of 2.86. This is amongst the best in the industry. CBT outperforms 84.52% of its industry peers.
CBT has a Debt/Equity ratio of 0.84. This is a neutral value indicating CBT is somewhat dependend on debt financing.
CBT has a Debt to Equity ratio of 0.84. This is comparable to the rest of the industry: CBT outperforms 40.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 2.86 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.91
WACC7.57%
2.3 Liquidity
CBT has a Current Ratio of 2.22. This indicates that CBT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.22, CBT perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that CBT should not have too much problems paying its short term obligations.
The Quick ratio of CBT (1.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
CBT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.87%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.95% on average over the past years.
The Revenue has decreased by -2.94% 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)30.87%
EPS 3Y37.49%
EPS 5Y5.95%
EPS Q2Q%35.21%
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y14.57%
Revenue growth 5Y3.93%
Sales Q2Q%4.96%
3.2 Future
Based on estimates for the next years, CBT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.36% on average per year.
Based on estimates for the next years, CBT will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y32.55%
EPS Next 2Y21.17%
EPS Next 3Y17.36%
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y2.89%
Revenue Next 3Y3.15%
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.
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
A Price/Earnings ratio of 14.37 indicates a correct valuation of CBT.
75.00% 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 rather cheap valuation when compared to the S&P500 average which is at 29.62.
Based on the Price/Forward Earnings ratio of 12.57, the valuation of CBT can be described as correct.
64.29% of the companies in the same industry are more expensive than CBT, based on the Price/Forward Earnings ratio.
CBT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
76.19% of the companies in the same industry are more expensive than CBT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CBT is valued a bit cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.75 | ||
| EV/EBITDA | 8.46 |
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.
A more expensive valuation may be justified as CBT's earnings are expected to grow with 17.36% in the coming years.
PEG (NY)0.44
PEG (5Y)2.42
EPS Next 2Y21.17%
EPS Next 3Y17.36%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 1.65%.
Compared to an average industry Dividend Yield of 2.86, CBT has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.24, CBT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.84%
Div Incr Years12
Div Non Decr Years33
5.3 Sustainability
CBT pays out 19.57% of its income as dividend. This is a sustainable payout ratio.
The dividend of CBT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.57%
EPS Next 2Y21.17%
EPS Next 3Y17.36%
CABOT CORP
NYSE:CBT (9/6/2024, 8:04:14 PM)
After market: 99.29 0 (0%)99.29
-0.42 (-0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 14.37 | ||
| Fwd PE | 12.57 | ||
| 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)0.44
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.13% | ||
| ROE | 34.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.31% | ||
| PM (TTM) | 11.87% | ||
| GM | 23.88% | ||
| 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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.45 | ||
| 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)30.87%
EPS 3Y37.49%
EPS 5Y
EPS Q2Q%
EPS Next Y32.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.94%
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