Cabot Corporation
Cabot Corporation Fundamental Analysis
Cabot Corporation (CBT) shows moderate financial fundamentals with a PE ratio of 12.90, profit margin of 8.62%, and ROE of 20.42%. The company generates $3.6B in annual revenue with weak year-over-year growth of -7.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CBT's fundamental strength across five key dimensions:
Efficiency Score
WeakCBT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCBT trades at attractive valuation levels.
Growth Score
WeakCBT faces weak or negative growth trends.
Financial Health Score
ExcellentCBT maintains a strong and stable balance sheet.
Profitability Score
ModerateCBT maintains healthy but balanced margins.
Key Financial Metrics
Is CBT Expensive or Cheap?
P/E Ratio
CBT trades at 12.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CBT's PEG of -2.61 indicates potential undervaluation.
Price to Book
The market values Cabot Corporation at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.98 times EBITDA. This is generally considered low.
How Well Does CBT Make Money?
Net Profit Margin
For every $100 in sales, Cabot Corporation keeps $8.62 as profit after all expenses.
Operating Margin
Core operations generate 16.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.42 in profit for every $100 of shareholder equity.
ROA
Cabot Corporation generates $8.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cabot Corporation produces operating cash flow of $660.95M, showing steady but balanced cash generation.
Free Cash Flow
Cabot Corporation generates strong free cash flow of $397.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.61 in free cash annually.
FCF Yield
CBT converts 10.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How CBT Stacks Against Its Sector Peers
| Metric | CBT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.90 | 27.41 | Better (Cheaper) |
| ROE | 20.42% | 859.00% | Weak |
| Net Margin | 8.62% | -120873.00% (disorted) | Weak |
| Debt/Equity | 0.71 | 0.51 | Weak (High Leverage) |
| Current Ratio | 1.67 | 4.80 | Neutral |
| ROA | 8.28% | -3590.00% (disorted) | Weak |
CBT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cabot Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.53%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
246.41%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
85.70%
Industry Style: Cyclical, Commodity, Value
High Growth