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Is this Large Market Cap Stock target price reasonable for Cabot Corporation (NYSE:CBT)?

The company in question is, Cabot Corporation (NYSE:CBT) currently with a stock price of 50.82 (0.83% today). The market cap for Cabot Corporation is 3241.22, and is in the sector Basic Materials, and Specialty Chemicals industry. The target price for Cabot Corporation is 53.2. Currently Cabot Corporation is trading with a P/E of 23.26, and a forward P/E of 14.1. Average volume for Cabot Corporation is 321.06 and so far today it is 99730.

Performance in the last year for Cabot Corporation has been 42.39%. For EPS growth, Cabot Corporation has seen a growth of -276.90%, and is looking to grow in the next year to 15.96%. More long term stats show that EPS growth has been -36.30% over the last five years and could be 13.90% for the next five years. Cabot Corporation has seen sales growth quarter over quarter at -10.50%, with EPS growth quarter over quarter at 112.60%. The 20-day simple moving average is 0.84%, with the 200-day simple moving average coming to 9.99%.

Since the IPO date for Cabot Corporation on the 11/05/1980, Cabot Corporation has seen performance year to date to be 25.49%. With Cabot Corporation trading at 50.82, the dividend yield is 2.38%, and the EPS is 2.17.

So could Cabot Corporation, be undervalued? Well as said before P/E is 23.26. The PEG is 1.67, P/S is 1.32 and the P/B is at 2.44. The P/cash is 14.6, with P/free cash flow at 9.62.

Cabot Corporation ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.1. This is with long term debt/equity at 0.54, and total debt/equity at 0.78.

In terms of margins, Cabot Corporation has a gross margin of 23.80%, an operating margin of 9.40% and a profit margin of 5.60%.Payout ratio for Cabot Corporation is 43.70%. Return on assets come to 4.50% with return on investment coming to -12.10%.

Insider ownership for Cabot Corporation, is at 0.80% and institutional ownership comes to 87.90%. Outstanding shares are at 64.31. While shares float is 61.74. The float short is currently 2.08%, and short ratio is 3.99.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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