CABOT CORP (CBT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CBT - US1270551013 - Common Stock
68.7 USD
+0.36 (+0.53%)
68.7 USD
0 (0%)
Overall CBT gets a fundamental rating of 7 out of 10. We evaluated CBT against 83 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. CBT has a bad growth rate and is valued cheaply. These ratings would make CBT suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year CBT was profitable.
In the past year CBT had a positive cash flow from operations.
In the past 5 years CBT has always been profitable.
In the past 5 years CBT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.55%, CBT belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
CBT's Return On Equity of 21.03% is amongst the best of the industry. CBT outperforms 92.77% of its industry peers.
CBT's Return On Invested Capital of 15.60% is amongst the best of the industry. CBT outperforms 96.39% 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 5.95%.
The last Return On Invested Capital (15.60%) for CBT is above the 3 year average (14.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 21.03% | ||
| ROIC | 15.6% |
ROA(3y)10.23%
ROA(5y)8.8%
ROE(3y)27.28%
ROE(5y)26.17%
ROIC(3y)14.41%
ROIC(5y)14.64%
1.3 Margins
CBT's Profit Margin of 8.78% is amongst the best of the industry. CBT outperforms 81.93% of its industry peers.
In the last couple of years the Profit Margin of CBT has grown nicely.
CBT has a Operating Margin of 16.73%. This is amongst the best in the industry. CBT outperforms 83.13% of its industry peers.
CBT's Operating Margin has improved in the last couple of years.
CBT has a Gross Margin (25.32%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CBT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.73% | ||
| PM (TTM) | 8.78% | ||
| GM | 25.32% |
OM growth 3Y8.11%
OM growth 5Y14.72%
PM growth 3Y22.58%
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y5.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CBT is creating value.
Compared to 1 year ago, CBT has less shares outstanding
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
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.
With an excellent Altman-Z score value of 3.33, CBT belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
CBT has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as CBT would need 2.89 years to pay back of all of its debts.
The Debt to FCF ratio of CBT (2.89) is better than 89.16% of its industry peers.
CBT has a Debt/Equity ratio of 0.56. This is a neutral value indicating CBT is somewhat dependend on debt financing.
CBT's Debt to Equity ratio of 0.56 is fine compared to the rest of the industry. CBT outperforms 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.82
WACC8.56%
2.3 Liquidity
CBT has a Current Ratio of 1.61. This is a normal value and indicates that CBT is financially healthy and should not expect problems in meeting its short term obligations.
CBT has a worse Current ratio (1.61) than 63.86% of its industry peers.
CBT has a Quick Ratio of 1.08. This is a normal value and indicates that CBT is financially healthy and should not expect problems in meeting its short term obligations.
CBT has a Quick ratio of 1.08. This is comparable to the rest of the industry: CBT outperforms 42.17% of its industry peers.
CBT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
CBT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.83%.
The Earnings Per Share has been growing by 28.53% on average over the past years. This is a very strong growth
The Revenue has decreased by -7.04% in the past year.
CBT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.27% yearly.
EPS 1Y (TTM)2.83%
EPS 3Y5.06%
EPS 5Y28.53%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)-7.04%
Revenue growth 3Y-4.93%
Revenue growth 5Y7.27%
Sales Q2Q%-10.19%
3.2 Future
Based on estimates for the next years, CBT will show a small growth in Earnings Per Share. The EPS will grow by 2.32% on average per year.
CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.42% yearly.
EPS Next Y-9.3%
EPS Next 2Y-0.12%
EPS Next 3Y2.32%
EPS Next 5YN/A
Revenue Next Year-4.73%
Revenue Next 2Y-0.98%
Revenue Next 3Y0.42%
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.
When comparing the Revenue 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
A Price/Earnings ratio of 9.46 indicates a reasonable valuation of CBT.
Based on the Price/Earnings ratio, CBT is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.55, CBT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.43, which indicates a very decent valuation of CBT.
Based on the Price/Forward Earnings ratio, CBT is valued cheaper than 81.93% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CBT to the average of the S&P500 Index (23.78), we can say CBT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 10.43 |
4.2 Price Multiples
CBT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CBT is cheaper than 86.75% of the companies in the same industry.
84.34% 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 | 9.29 | ||
| EV/EBITDA | 5.8 |
4.3 Compensation for Growth
CBT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-0.12%
EPS Next 3Y2.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.63%, CBT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.66, CBT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, CBT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of CBT has a limited annual growth rate of 4.94%.
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)4.94%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
29.45% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.45%
EPS Next 2Y-0.12%
EPS Next 3Y2.32%
68.7
+0.36 (+0.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.52%
Inst Owner Change0.74%
Ins Owners1.25%
Ins Owner Change4.51%
Market Cap3.63B
Revenue(TTM)3.71B
Net Income(TTM)326.00M
Analysts73.33
Price Target68.34 (-0.52%)
Short Float %3.19%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend1.79
Dividend Growth(5Y)4.94%
DP29.45%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.61%
Min EPS beat(2)0.03%
Max EPS beat(2)3.18%
EPS beat(4)4
Avg EPS beat(4)1.25%
Min EPS beat(4)0.03%
Max EPS beat(4)3.18%
EPS beat(8)7
Avg EPS beat(8)2.93%
EPS beat(12)10
Avg EPS beat(12)2.14%
EPS beat(16)14
Avg EPS beat(16)4.67%
Revenue beat(2)0
Avg Revenue beat(2)-5.83%
Min Revenue beat(2)-7.35%
Max Revenue beat(2)-4.31%
Revenue beat(4)0
Avg Revenue beat(4)-6.58%
Min Revenue beat(4)-9.48%
Max Revenue beat(4)-4.31%
Revenue beat(8)1
Avg Revenue beat(8)-3.94%
Revenue beat(12)2
Avg Revenue beat(12)-4.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.95%
PT rev (1m)-23.43%
PT rev (3m)-23.86%
EPS NQ rev (1m)-6.5%
EPS NQ rev (3m)-19.33%
EPS NY rev (1m)-16.62%
EPS NY rev (3m)-16.94%
Revenue NQ rev (1m)-3.15%
Revenue NQ rev (3m)-5.05%
Revenue NY rev (1m)-7.87%
Revenue NY rev (3m)-8.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 10.43 | ||
| P/S | 0.98 | ||
| P/FCF | 9.29 | ||
| P/OCF | 5.47 | ||
| P/B | 2.34 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 5.8 |
EPS(TTM)7.26
EY10.57%
EPS(NY)6.58
Fwd EY9.58%
FCF(TTM)7.39
FCFY10.76%
OCF(TTM)12.57
OCFY18.3%
SpS70.19
BVpS29.3
TBVpS25.73
PEG (NY)N/A
PEG (5Y)0.33
Graham Number69.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 21.03% | ||
| ROCE | 21.73% | ||
| ROIC | 15.6% | ||
| ROICexc | 17.14% | ||
| ROICexgc | 18.48% | ||
| OM | 16.73% | ||
| PM (TTM) | 8.78% | ||
| GM | 25.32% | ||
| FCFM | 10.53% |
ROA(3y)10.23%
ROA(5y)8.8%
ROE(3y)27.28%
ROE(5y)26.17%
ROIC(3y)14.41%
ROIC(5y)14.64%
ROICexc(3y)15.7%
ROICexc(5y)15.9%
ROICexgc(3y)16.88%
ROICexgc(5y)17.3%
ROCE(3y)20.49%
ROCE(5y)21.33%
ROICexgc growth 3Y1.98%
ROICexgc growth 5Y16.93%
ROICexc growth 3Y2.08%
ROICexc growth 5Y17.96%
OM growth 3Y8.11%
OM growth 5Y14.72%
PM growth 3Y22.58%
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y5.51%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 177.92% | ||
| Cap/Sales | 7.38% | ||
| Interest Coverage | 7.86 | ||
| Cash Conversion | 85.81% | ||
| Profit Quality | 119.94% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 3.33 |
F-Score6
WACC8.56%
ROIC/WACC1.82
Cap/Depr(3y)168.99%
Cap/Depr(5y)154.67%
Cap/Sales(3y)6.54%
Cap/Sales(5y)6.04%
Profit Quality(3y)106.95%
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 Y-9.3%
EPS Next 2Y-0.12%
EPS Next 3Y2.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.04%
Revenue growth 3Y-4.93%
Revenue growth 5Y7.27%
Sales Q2Q%-10.19%
Revenue Next Year-4.73%
Revenue Next 2Y-0.98%
Revenue Next 3Y0.42%
Revenue Next 5YN/A
EBIT growth 1Y1.14%
EBIT growth 3Y2.78%
EBIT growth 5Y23.06%
EBIT Next Year12.26%
EBIT Next 3Y8.08%
EBIT Next 5YN/A
FCF growth 1Y-13.3%
FCF growth 3YN/A
FCF growth 5Y17.18%
OCF growth 1Y-3.9%
OCF growth 3Y88.05%
OCF growth 5Y12.02%
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 8 / 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 decline by -9.3% in the next year.
Can you provide the dividend sustainability for CBT stock?
The dividend rating of CABOT CORP (CBT) is 6 / 10 and the dividend payout ratio is 29.45%.