Cabot Corp
CBT
Miscellaneous Chemical Products
Mkt Cap
$5.571BPE
12.58Debt
$1.176BCash
$206MEV
$6.541BFCF
$407MP/E Ratio
12.58Debt
$1.176BCash
$206MEV
$6.541BFCF
$407MCharts data: {"Earnings":[{"time":"2014-09-29","value":197000000},{"time":"2015-09-29","value":-334000000},{"time":"2016-09-29","value":148000000},{"time":"2017-09-29","value":239000000},{"time":"2018-09-29","value":-114000000},{"time":"2019-09-29","value":155000000},{"time":"2020-09-29","value":-238000000},{"time":"2021-09-29","value":247000000},{"time":"2022-09-29","value":206000000},{"time":"2023-09-29","value":437000000}],"Sales":[{"time":"2014-09-29","value":3647000000},{"time":"2015-09-29","value":2871000000},{"time":"2016-09-29","value":2411000000},{"time":"2017-09-29","value":2717000000},{"time":"2018-09-29","value":3242000000},{"time":"2019-09-29","value":3337000000},{"time":"2020-09-29","value":2614000000},{"time":"2021-09-29","value":3409000000},{"time":"2022-09-29","value":4321000000},{"time":"2023-09-29","value":3931000000}],"Net Margins":[{"time":"2014-09-29","value":0.05401700027419797},{"time":"2015-09-29","value":-0.1163357715081853},{"time":"2016-09-29","value":0.061385317295727916},{"time":"2017-09-29","value":0.08796466691203533},{"time":"2018-09-29","value":-0.0351634793337446},{"time":"2019-09-29","value":0.04644890620317651},{"time":"2020-09-29","value":-0.09104820198928845},{"time":"2021-09-29","value":0.07245526547374596},{"time":"2022-09-29","value":0.04767414950242999},{"time":"2023-09-29","value":0.11116764182141949}],"Assets":[{"time":"2014-09-29","value":4084000000},{"time":"2015-09-29","value":3075000000},{"time":"2016-09-29","value":3044000000},{"time":"2017-09-29","value":3314000000},{"time":"2018-09-29","value":3244000000},{"time":"2019-09-29","value":3004000000},{"time":"2020-09-29","value":2781000000},{"time":"2021-09-29","value":3306000000},{"time":"2022-09-29","value":3525000000},{"time":"2023-09-29","value":3604000000}],"Stockholders Equity":[{"time":"2014-09-29","value":2064000000},{"time":"2015-09-29","value":1338000000},{"time":"2016-09-29","value":1372000000},{"time":"2017-09-29","value":1601000000},{"time":"2018-09-29","value":1279000000},{"time":"2019-09-29","value":1134000000},{"time":"2020-09-29","value":814000000},{"time":"2021-09-29","value":1090000000},{"time":"2022-09-29","value":1032000000},{"time":"2023-09-29","value":1407000000}],"ROE":[{"time":"2014-09-29","value":0.09544573643410853},{"time":"2015-09-29","value":-0.24962630792227206},{"time":"2016-09-29","value":0.10787172011661808},{"time":"2017-09-29","value":0.14928169893816365},{"time":"2018-09-29","value":-0.08913213448006255},{"time":"2019-09-29","value":0.13668430335097},{"time":"2020-09-29","value":-0.29238329238329236},{"time":"2021-09-29","value":0.22660550458715598},{"time":"2022-09-29","value":0.1996124031007752},{"time":"2023-09-29","value":0.31058990760483296}],"ROA":[{"time":"2014-09-29","value":0.08888344760039177},{"time":"2015-09-29","value":-0.10308943089430894},{"time":"2016-09-29","value":0.0821287779237845},{"time":"2017-09-29","value":0.10289680144840073},{"time":"2018-09-29","value":0.052712700369913684},{"time":"2019-09-29","value":0.10452729693741677},{"time":"2020-09-29","value":0.007551240560949299},{"time":"2021-09-29","value":0.13762855414398065},{"time":"2022-09-29","value":0.11092198581560284},{"time":"2023-09-29","value":0.15011098779134296}]}
Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions. The company also provides specialty carbons for use in inks, coatings, cables, plastics, adhesives, toners, batteries, and displays applications; conductive carbon additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries. In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.
DCF
Discounted Cash Flow Valuation of Cabot Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $407M | $401.2M | $395.5M | $389.8M | $384.3M | $378.8M | $373.4M | $368.1M | $362.8M | $357.7M | $352.6M | $3.526B |
| DCF | $348.9M | $299M | $256.3M | $219.7M | $188.3M | $161.4M | $138.4M | $118.6M | $101.7M | $87.15M | $871.5M | |
| Value | $2.791B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 10%
Earnings Stability -17%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -12% | 6.1% | 8.8% | -3.5% | 4.6% | -9.1% | 7.2% | 4.8% | 11% | 11% |
| ROA | -10% | 8.2% | 10% | 5.3% | 10% | 0.76% | 14% | 11% | 15% | 17% |
| ROE | -25% | 11% | 15% | -8.9% | 14% | -29% | 23% | 20% | 31% | 29% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +2.53%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.57%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +9.39%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.82%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +8.2%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +7.73%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.78 | 3.31 | 6.10 | 14.59 | 7.71 | 6.30 | 23.60 | -13.00 | 3.64 | 2.89 |
| Debt Equity | 0.74 | 0.68 | 0.74 | 0.79 | 0.94 | 1.37 | 1.34 | 1.40 | 0.91 | 0.78 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | -650% | 100% | -260% | - | 100% | 100% | -650% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 2.89.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -2.85.
What is the Graham’s Stability?
Graham’s Stability measure stands at -6.45.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 7.2% | 3.9% | 15% | -9% | 2.9% |
| Net Income | 17% | - | - | 110% | 0.68% |
| Stockholders Equity | 0.36% | 1.9% | 20% | 36% | 4.8% |
| FCF | 3.3% | 38% | 26% | - | -15% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +3.93%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +2.86%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +0.68%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +1.93%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.81%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +38.45%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -14.64%.