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A Look At Cabot Corporation's (NYSE:CBT) Exceptional Fundamentals

Simply Wall St

Cabot Corporation (NYSE:CBT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CBT, it is a financially-robust , dividend-paying company with a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Cabot here.

Established dividend payer with proven track record

CBT has a strong track record of performance. In the previous year, CBT delivered an impressive double-digit return of 20%. Not surprisingly, CBT outperformed its industry which returned 14%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. CBT's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that CBT has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. CBT's has produced operating cash levels of 0.29x total debt over the past year, which implies that CBT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:CBT Income Statement, August 22nd 2019

Income investors would also be happy to know that CBT is a great dividend company, with a current yield standing at 3.6%. CBT has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:CBT Historical Dividend Yield, August 22nd 2019

Next Steps:

For Cabot, there are three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for CBT’s future growth? Take a look at our free research report of analyst consensus for CBT’s outlook.
  2. Valuation: What is CBT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CBT is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CBT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.