Texas (July 21, 2014) Wax Ink has issued a Negative Investment Interest opinion for Cabot Corporation (NYE: CBT), based on a recent intrinsic value review that placed fair value for the company between $36-$44.
A Negative Investment Interest opinion (sell) means that the current key performance indicators (KPIs) and associated financial metrics do not favor a position in this stock as an active investment at this time.
The recent close of $56.92 is approximately 162% above a fair value buy target for the stock and approximately 27% above a fair value close target for the stock. The recent close is also 15% below analysts' twelve-month $67.00 median price target for the stock.
The recent close represents a 42% increase in the one-year price of the stock, while year-over-year sales increased 5%, year-over-year earnings decreased 18%, year-over-year debt decreased 8%, and year-over-year free cash flow increased 2%.
The company paid a dividend of $0.80, a year-over-year increase of 5%.
The stock currently has a trailing twelve-month PE Ratio of 26, and a PEG Ratio of 5.2 basis estimated forward earnings growth of 5%.
In the past 52 weeks, share prices have moved between a high of $61.46 and a low of $39.00, placing current equilibrium at $55.57. With the recent close, the stock is trading 8% below the 52 week high, 32% above the 52 week low, and 2% above current equilibrium.
The three-month average daily trading volume for this stock is approximately 0.276 million shares and the recent average daily trading volume is approximately 0.224 million shares. There are approximately 0.627 million short interest shares which places the days to cover at 2.08.
Cabot Corporation operates as a specialty chemicals and performance materials company.
The company's listed competitors include Aditya Birla Nuvo Limited, Evonik Degussa GmbH, and Sid Richardson Carbon and Energy Company.
Financial information contained in this alert, is basis the company's most recent annual SEC filing for year ending September 30, 2013. Unless otherwise noted, all prices are per share.
At this time Wax Ink has no investment position in any company mentioned in this alert. This alert is for use by Accredited Investors as defined under Title 17, CFR §230.500, Regulation D.
Wax Ink is a baseline equity research company not licensed or registered with any government agency focusing on long-term investment opportunities.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.