CABOT CORPORATION Reports Record Breaking Earnings for Q1 FY2023
March 4, 2023
Earnings report
CABOT CORPORATION ($NYSE:CBT) has released its earnings results for the first quarter of FY2023, ending December 31 2022. On February 9 2023, the company reported a remarkable performance of 160.7% growth in total revenue, amounting to USD54.0 million. This is a record breaking high for the company. Net income for CABOT CORPORATION, however, decreased by 0.3% year over year to USD 965.0 million. The decrease is likely due to the costs associated with the implementation of their new corporate strategy and associated restructuring activities.
However, the company has managed to remain profitable despite this operational cost in the face of a difficult business climate. Overall, CABOT CORPORATION’s first quarter of FY2023 has been a success, with record breaking revenue growth that more than offset its net income dip. This strong performance will surely help them continue their momentum in the coming quarters.
Stock Price
CABOT CORPORATION reported record breaking earnings for the first quarter of FY2023 on Thursday. At the end of the trading day, the stock opened at $74.0 and closed at $72.7, a decrease of 0.8% from the previous closing price of 73.3. The reported earnings showed a strong profit for CABOT CORPORATION, and despite the slight decline in their stock price, it is an encouraging sign for the company’s future outlook. Investors seemed to be taking a cautious approach, however, as they continue to assess the long-term effects of CABOT CORPORATION’s financial performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cabot Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 4.32k | 348 | 8.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cabot Corporation. More…
| Operations | Investing | Financing |
| 201 | -106 | -50 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cabot Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.54k | 2.38k | 17.91 |
Key Ratios Snapshot
Some of the financial key ratios for Cabot Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 20.8% | 13.4% |
| FCF Margin | ROE | ROA |
| -0.3% | 37.9% | 10.2% |
Analysis
As a financial analyst at GoodWhale, I recently had the opportunity to analyze the financials of CABOT CORPORATION. After running our comprehensive set of financial tests, we have determined that CABOT CORPORATION is strong in dividend, growth, profitability, and medium in asset according to our Star Chart. Moreover, after further analysis we concluded that CABOT CORPORATION is classified as a ‘gorilla’, meaning a type of company that has achieved a stable and high revenue or earning growth due to its strong competitive advantage. As such, CABOT CORPORATION may be an attractive investment for a variety of investor types, especially those looking for stability and returns. Furthermore, we have determined that CABOT CORPORATION has a high health score of 8/10 considering its cashflows and debt. This means that the company is capable to sustain future operations in times of crisis, an important consideration when evaluating potential investments. More…
Peers
This includes Zeon Corp, DIC Corp, and Kureha Corp, all of which have their own unique strengths and capabilities that pose a direct challenge to Cabot Corp’s leadership position. All four companies are striving to stay ahead of the curve and secure a competitive advantage in the market.
– Zeon Corp ($TSE:4205)
Zeon Corp is a diversified chemical company specializing in chemicals, plastics and synthetic rubbers. It has a market capitalization of 267.99B as of 2022, making it one of the largest chemical companies in the world. It also has an impressive Return on Equity (ROE) of 8.33%, which is higher than the average for the industry. This suggests that the company is efficiently using its resources to generate profits, and is an attractive investment for shareholders. The company has a broad portfolio of products and services, ranging from industrial materials to consumer products, and is well-positioned to benefit from the growth in the chemical industry.
– DIC Corp ($TSE:4631)
DIC Corp is a Japanese chemical company specializing in the production of chemicals, plastics, pigments, and printing inks. As of 2022, the company had a market cap of 231.43B and a Return on Equity (ROE) of 6.52%. DIC Corp’s market cap is indicative of its strong financial performance, as it has been able to generate high returns for its shareholders over the past few years. The company’s ROE is also a measure of its profitability, which suggests that DIC Corp is able to generate profits from the investments it makes. The company has been able to consistently grow its revenue and profits over the years, further demonstrating its strong fundamentals.
– Kureha Corp ($TSE:4023)
Kureha Corp is a diversified chemical company based in Japan. It produces a variety of products including plastics, rubber, and specialty chemicals. With a market cap of 173.31B as of 2022, Kureha Corp is a well-established company that is financially sound. Its Return on Equity (ROE) of 7.94% indicates that the company is able to generate a return on its investments that is higher than the average of the industry. This demonstrates Kureha Corp’s financial strength and shows that the company is well-positioned to continue to succeed in the future.
Summary
W h i l e t h e o v e r a l l t r e n d i s p o s i t i v e , i n v e s t o r s s h o u l d c a r e f u l l y c o n s i d e r t h e g r o w t h a n d s u s t a i n a b i l i t y o f t h i s c o m p a n y b e f o r e i n v e s t i n g . F u r t h e r m o r e , t h e y s h o u l d a l s o c o n s i d e r f a c t o r s s u c h a s c o m p e t i t i o n a n d t h e c u r r e n t e c o n o m i c c l i m a t e i n o r d e r t o m a k e a n i n f o r m e d d e c i s i o n.
