CABOT CORP (CBT) Stock Fundamental Analysis
NYSE:CBT - New York Stock Exchange, Inc. - US1270551013 - Common Stock
CBT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 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. Finally CBT also has an excellent dividend rating. These ratings could make CBT a good candidate for value and dividend and quality 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.
Of the past 5 years CBT 4 years were profitable.
CBT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.01%, CBT belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
CBT has a Return On Equity of 26.25%. This is amongst the best in the industry. CBT outperforms 96.39% of its industry peers.
The Return On Invested Capital of CBT (16.12%) is better than 96.39% 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 6.57%.
The 3 year average ROIC (15.53%) for CBT is below the current ROIC(16.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 26.25% | ||
| ROIC | 16.12% |
ROA(3y)9.33%
ROA(5y)5.38%
ROE(3y)27.92%
ROE(5y)15.08%
ROIC(3y)15.53%
ROIC(5y)14.15%
1.3 Margins
CBT has a Profit Margin of 9.36%. This is amongst the best in the industry. CBT outperforms 80.72% of its industry peers.
CBT's Profit Margin has improved in the last couple of years.
CBT's Operating Margin of 15.37% is amongst the best of the industry. CBT outperforms 81.93% of its industry peers.
In the last couple of years the Operating Margin of CBT has grown nicely.
CBT has a Gross Margin (24.04%) 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 | 15.37% | ||
| PM (TTM) | 9.36% | ||
| GM | 24.04% |
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
CBT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
CBT has a better debt/assets ratio than last year.
2.2 Solvency
CBT has an Altman-Z score of 3.82. This indicates that CBT is financially healthy and has little risk of bankruptcy at the moment.
CBT has a Altman-Z score of 3.82. This is amongst the best in the industry. CBT outperforms 83.13% of its industry peers.
CBT has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as CBT would need 2.53 years to pay back of all of its debts.
CBT has a better Debt to FCF ratio (2.53) than 87.95% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that CBT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, CBT perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.85
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.08 indicates that CBT has no problem at all paying its short term obligations.
CBT has a Current ratio of 2.08. This is comparable to the rest of the industry: CBT outperforms 48.19% of its industry peers.
A Quick Ratio of 1.36 indicates that CBT should not have too much problems paying its short term obligations.
CBT has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
CBT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.23%, which is quite impressive.
Measured over the past years, CBT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.54% on average per year.
The Revenue has been growing slightly by 1.60% in the past year.
The Revenue has been growing slightly by 3.66% on average over the past years.
EPS 1Y (TTM)31.23%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%9.09%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%3.73%
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 9.98% on average per year.
CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y9.44%
EPS Next 2Y9.76%
EPS Next 3Y9.98%
EPS Next 5YN/A
Revenue Next Year4.25%
Revenue Next 2Y3.81%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
CBT is valuated correctly with a Price/Earnings ratio of 13.10.
CBT's Price/Earnings ratio is rather cheap when compared to the industry. CBT is cheaper than 81.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CBT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.97, the valuation of CBT can be described as reasonable.
75.90% of the companies in the same industry are more expensive than CBT, based on the Price/Forward Earnings ratio.
CBT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
80.72% of the companies in the same industry are more expensive than CBT, based on the Enterprise Value to EBITDA ratio.
CBT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CBT is cheaper than 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.16 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CBT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.04
EPS Next 2Y9.76%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
CBT has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 3.26, CBT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, CBT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
CBT pays out 24.87% 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.
DP24.87%
EPS Next 2Y9.76%
EPS Next 3Y9.98%
CABOT CORP
NYSE:CBT (1/21/2025, 8:04:00 PM)
After market: 92.51 0 (0%)92.51
+1.24 (+1.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change-0.34%
Ins Owners1.07%
Ins Owner Change3.01%
Market Cap5.03B
Analysts73.33
Price Target123.17 (33.14%)
Short Float %4.27%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.7
Dividend Growth(5Y)4.51%
DP24.87%
Div Incr Years13
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.43%
Min EPS beat(2)-1.41%
Max EPS beat(2)10.27%
EPS beat(4)3
Avg EPS beat(4)4.6%
Min EPS beat(4)-1.41%
Max EPS beat(4)10.27%
EPS beat(8)6
Avg EPS beat(8)2.58%
EPS beat(12)10
Avg EPS beat(12)5.8%
EPS beat(16)14
Avg EPS beat(16)10.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)0.59%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-3.41%
Max Revenue beat(4)0.59%
Revenue beat(8)2
Avg Revenue beat(8)-3.6%
Revenue beat(12)6
Avg Revenue beat(12)0.92%
Revenue beat(16)9
Avg Revenue beat(16)2.09%
PT rev (1m)0%
PT rev (3m)11.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.97 | ||
| P/S | 1.26 | ||
| P/FCF | 11.16 | ||
| P/OCF | 7.27 | ||
| P/B | 3.53 | ||
| P/tB | 4.06 | ||
| EV/EBITDA | 7.63 |
EPS(TTM)7.06
EY7.63%
EPS(NY)7.73
Fwd EY8.35%
FCF(TTM)8.29
FCFY8.96%
OCF(TTM)12.72
OCFY13.75%
SpS73.43
BVpS26.2
TBVpS22.78
PEG (NY)1.39
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.01% | ||
| ROE | 26.25% | ||
| ROCE | 20.72% | ||
| ROIC | 16.12% | ||
| ROICexc | 17.41% | ||
| ROICexgc | 18.66% | ||
| OM | 15.37% | ||
| PM (TTM) | 9.36% | ||
| GM | 24.04% | ||
| FCFM | 11.29% |
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%
ROICexcg growth 3Y-2.54%
ROICexcg 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-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 159.6% | ||
| Cap/Sales | 6.03% | ||
| Interest Coverage | 7.49 | ||
| Cash Conversion | 90.46% | ||
| Profit Quality | 120.59% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 3.82 |
F-Score7
WACC8.72%
ROIC/WACC1.85
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)31.23%
EPS 3Y12.04%
EPS 5Y12.54%
EPS Q2Q%9.09%
EPS Next Y9.44%
EPS Next 2Y9.76%
EPS Next 3Y9.98%
EPS Next 5YN/A
Revenue 1Y (TTM)1.6%
Revenue growth 3Y5.42%
Revenue growth 5Y3.66%
Sales Q2Q%3.73%
Revenue Next Year4.25%
Revenue Next 2Y3.81%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y16.07%
EBIT growth 3Y9.71%
EBIT growth 5Y11.83%
EBIT Next Year30.58%
EBIT Next 3Y13.91%
EBIT Next 5YN/A
FCF growth 1Y28.49%
FCF growth 3Y93.76%
FCF growth 5Y26.54%
OCF growth 1Y16.3%
OCF growth 3Y39.12%
OCF growth 5Y13.77%