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Fundamental analysis: Cabot Corporation (CBT)

Awarener score: 5.8

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.5

• Business growth has been almost stagnant. It's been almost average when measured against peer companies.
• Cabot Corporation business shows some variation, there's some risk. It looks slightly worse than rivals.

Margins score: 5.7

• CBT profit margins -on goods and services sold- are usually meagre. They stand mediocre against rival companies.
• Business profit on sales tends to be good. It's below average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain in a weak position compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still mediocre against similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
• Total net profit tends to be hardly sufficient when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 6.4

• Cabot Corporation profit -on goods and services sold- has been growing at a very low pace. It's been close to average when compared to competitors.
• In recent years, earnings -on operations- have been growing at an extremely fast step, which has been top-notch against comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares great when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be impressive in relation to similar stocks.
• In past years, profits -before income taxes- grew at an extremely fast speed. It was top-notch against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 7.0

• CBT had to pay too much income taxes in relation to profits made in the past years. It's been worse than most peers.
• Research and development expenses hardly consume a portion of revenues. It's similar to competitors.
• The company shows very good business growth in relation to research and development efforts. It stands rather normal in relation to rival companies.

Profitability score: 7.8

• Cabot Corporation usually gets very good returns on the resources it controls. It proves almost average when measured against peer firms.
• The company normally gets very good proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
• Profitability -in relation to owned resources- is usually quite good. It ranks below average when measured against competitors.
• In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's weak when measured against comparable enterprises.

Usage of Funds score: 5.5

• CBT usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands weak when measured against rival firms.
• The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is encouraging in relation to industry peers.
• In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly better than competitors.
• In recent years, has slightly cut back dividend payments. The company has behaved in a very weak position compared to similar firms.
• The company usually uses a portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects are challenged. Sustainability looks slightly worse than comparable companies.
• The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
• The company uses somewhat more funds to reward investors than it can genuinely generate, so some part of them is paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business somewhat improves, or rewards will probably not be sustained at this pace. It still looks below average when measured against competitors.

Balance Sheet score: 4.7

• Cabot Corporation intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be similar to peer companies.
• The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be in a weak position compared to similar firms.
• A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains somewhat worse than rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks more than average in relation to rivals.
• For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's lacking compared to peer firms.
• For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is mediocre against similar enterprises.
• Usually, sales are on slightly higher than two months credit. It still ranks weak when measured against peers.
• Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as rather normal in relation to competitors.
• On average, it takes higher than five months from the purchase to charging customers. It happens to be slightly worse than peers.
• Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
• The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's in a weak position compared to similar companies.
• Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
• Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
• Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
• Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still better than most peer companies.

Valuation score: 6.0

• Cabot Corporation looks reasonable in relation to profits and financial position. It happens to be encouraging in relation to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
• In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands somewhat better than similar companies.
• The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still almost average when measured against industry firms.
• In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
• The company is somewhat indebted, loan repayment needs to be taken into account. It looks somewhat worse than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks encouraging in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
• The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
• In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still in a weak position compared to peer companies.

Total score: 5.9

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Awarener score: 5.8

Conclusion

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