Loading...

We've got a brand new version of Simply Wall St! Try it out

Cubic

NYSE:CUB
Snowflake Description

Reasonable growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CUB
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Cubic Corporation provides various integrated solutions worldwide. The last earnings update was 103 days ago. More info.


Add to Portfolio Compare Print
CUB Share Price and Events
7 Day Returns
0.9%
NYSE:CUB
1.9%
US Aerospace & Defense
0.7%
US Market
1 Year Returns
7.5%
NYSE:CUB
19.7%
US Aerospace & Defense
12.9%
US Market
CUB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cubic (CUB) 0.9% 5.2% 5.4% 7.5% 49.1% 59%
US Aerospace & Defense 1.9% 5.8% 7.6% 19.7% 45.4% 75.2%
US Market 0.7% 4.4% 7% 12.9% 39.5% 44.7%
1 Year Return vs Industry and Market
  • CUB underperformed the Aerospace & Defense industry which returned 19.7% over the past year.
  • CUB underperformed the Market in United States of America which returned 12.9% over the past year.
Price Volatility
CUB
Industry
5yr Volatility vs Market

Value

 Is Cubic undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cubic to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cubic.

NYSE:CUB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CUB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.877 (1 + (1- 21%) (21.56%))
1.018
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.018 * 5.96%)
8.8%

Discounted Cash Flow Calculation for NYSE:CUB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cubic is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:CUB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.8%)
2020 144.30 Analyst x2 132.63
2021 128.00 Analyst x1 108.14
2022 119.17 Est @ -6.9% 92.54
2023 114.40 Est @ -4.01% 81.65
2024 112.12 Est @ -1.99% 73.56
2025 111.48 Est @ -0.57% 67.23
2026 111.95 Est @ 0.42% 62.05
2027 113.20 Est @ 1.11% 57.67
2028 115.00 Est @ 1.6% 53.85
2029 117.23 Est @ 1.94% 50.46
Present value of next 10 years cash flows $779.00
NYSE:CUB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $117.23 × (1 + 2.73%) ÷ (8.8% – 2.73%)
$1,985.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,985.39 ÷ (1 + 8.8%)10
$854.51
NYSE:CUB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $779.00 + $854.51
$1,633.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,633.51 / 31.18
$52.39
NYSE:CUB Discount to Share Price
Calculation Result
Value per share (USD) From above. $52.39
Current discount Discount to share price of $73.43
= -1 x ($73.43 - $52.39) / $52.39
-40.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cubic is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cubic's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cubic's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CUB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $1.06
NYSE:CUB Share Price ** NYSE (2019-11-15) in USD $73.43
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 34 Publicly-Listed Aerospace & Defense Companies 21.46x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cubic.

NYSE:CUB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CUB Share Price ÷ EPS (both in USD)

= 73.43 ÷ 1.06

69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cubic is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • Cubic is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cubic's expected growth come at a high price?
Raw Data
NYSE:CUB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
39.8%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 28 Publicly-Listed Aerospace & Defense Companies 2.3x
United States of America Market PEG Ratio Median Figure of 2,031 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NYSE:CUB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 69x ÷ 39.8%

1.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cubic is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cubic's assets?
Raw Data
NYSE:CUB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $30.34
NYSE:CUB Share Price * NYSE (2019-11-15) in USD $73.43
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 50 Publicly-Listed Aerospace & Defense Companies 2.56x
United States of America Market PB Ratio Median Figure of 5,081 Publicly-Listed Companies 1.74x
NYSE:CUB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CUB Share Price ÷ Book Value per Share (both in USD)

= 73.43 ÷ 30.34

2.42x

* Primary Listing of Cubic.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cubic is good value based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Cubic's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Cubic has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cubic expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
39.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cubic expected to grow at an attractive rate?
  • Cubic's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cubic's earnings growth is expected to exceed the United States of America market average.
  • Cubic's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CUB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CUB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 39.8%
NYSE:CUB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 9.2%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CUB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CUB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 1,753 185 98 3
2020-09-30 1,592 164 73 6
2019-11-17
2019-09-30 1,466 28 50 6
NYSE:CUB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,405 -46 31
2019-03-31 1,319 -72 8
2018-12-31 1,260 -15 13
2018-09-30 1,203 19 8
2018-06-30 1,172 24 -4
2018-03-31 1,142 21 -83
2017-12-31 1,112 -9 -38
2017-09-30 1,108 25 -26
2017-06-30 1,165 23 -43
2017-03-31 1,274 93 40
2016-12-31 1,392 101 8
2016-09-30 1,071 45 -12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cubic's earnings are expected to grow significantly at over 20% yearly.
  • Cubic's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CUB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Cubic Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CUB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 3.20 3.49 2.79 4.00
2020-09-30 2.37 2.65 2.01 6.00
2019-11-17
2019-09-30 1.59 1.83 1.40 6.00
NYSE:CUB Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 1.06
2019-03-31 0.29
2018-12-31 0.47
2018-09-30 0.30
2018-06-30 -0.16
2018-03-31 -3.07
2017-12-31 -1.41
2017-09-30 -0.95
2017-06-30 -1.58
2017-03-31 1.48
2016-12-31 0.30
2016-09-30 -0.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cubic is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cubic's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cubic has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cubic performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cubic's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cubic's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Cubic has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Cubic has become profitable in the last year making it difficult to compare the US Aerospace & Defense industry average.
Earnings and Revenue History
Cubic's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cubic Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CUB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,404.99 31.41 282.16 50.52
2019-03-31 1,318.52 8.21 259.43 51.99
2018-12-31 1,259.77 12.92 257.09 52.43
2018-09-30 1,202.90 8.07 255.92 52.40
2018-06-30 1,172.30 -4.26 252.31 53.99
2018-03-31 1,142.28 -83.41 253.45 56.95
2017-12-31 1,111.73 -38.19 245.36 55.61
2017-09-30 1,107.71 -25.74 244.08 52.65
2017-06-30 1,165.18 -42.84 233.71 52.61
2017-03-31 1,274.24 39.89 243.97 44.23
2016-12-31 1,392.22 8.17 251.43 37.51
2016-09-30 1,070.60 -12.08 233.39 31.98
2016-06-30 1,480.99 29.21 246.86 25.61
2016-03-31 1,453.56 33.49 232.31 23.03
2015-12-31 1,426.37 12.32 223.95 19.52
2015-09-30 1,431.05 22.89 208.91 20.29
2015-06-30 1,401.49 35.71 202.07 16.97
2015-03-31 1,394.05 39.14 193.43 14.98
2014-12-31 1,409.70 66.26 187.07 17.30
2014-09-30 1,398.35 69.49 181.67 17.96
2014-06-30 1,342.76 -0.50 171.75 18.92
2014-03-31 1,339.63 5.68 169.39 21.40
2013-12-31 1,353.75 19.23 161.04 23.54
2013-09-30 1,361.41 25.09 166.63 24.45
2013-06-30 1,402.91 88.89 169.57 26.67
2013-03-31 1,431.08 97.23 168.19 28.67
2012-12-31 1,402.11 90.97 168.41 29.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cubic has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cubic used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Cubic's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cubic's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cubic has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cubic's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cubic's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cubic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cubic's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cubic's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cubic Company Filings, last reported 4 months ago.

NYSE:CUB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 965.58 493.71 62.88
2019-03-31 943.19 444.31 42.85
2018-12-31 951.21 279.66 75.60
2018-09-30 724.20 208.85 112.21
2018-06-30 675.89 228.45 93.69
2018-03-31 679.58 276.78 56.42
2017-12-31 679.12 287.77 49.00
2017-09-30 689.63 254.76 60.14
2017-06-30 661.49 304.43 80.12
2017-03-31 671.97 450.51 186.66
2016-12-31 666.09 442.39 178.69
2016-09-30 689.90 440.74 210.12
2016-06-30 727.10 431.15 186.77
2016-03-31 741.40 441.37 173.19
2015-12-31 741.83 236.53 194.97
2015-09-30 756.29 186.71 249.01
2015-06-30 770.71 171.91 214.91
2015-03-31 742.66 156.93 212.59
2014-12-31 773.33 162.16 188.46
2014-09-30 782.50 102.39 217.05
2014-06-30 772.52 110.66 166.84
2014-03-31 751.56 132.74 125.34
2013-12-31 734.55 122.87 125.43
2013-09-30 717.08 102.92 207.95
2013-06-30 716.40 102.91 216.50
2013-03-31 693.61 78.03 148.61
2012-12-31 684.90 32.38 174.12
  • Cubic's level of debt (51.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.3% vs 51.1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Cubic's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cubic has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Cubic's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.37%
Current annual income from Cubic dividends. Estimated to be 0.29% next year.
If you bought $2,000 of Cubic shares you are expected to receive $7 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cubic's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Cubic's dividend is below the markets top 25% of dividend payers in United States of America (3.65%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CUB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1955 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CUB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.21 2.00
2020-09-30 0.21 2.00
2019-11-17
2019-09-30 0.25 2.00
NYSE:CUB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-05 0.270 0.385
2019-02-19 0.270 0.450
2018-08-06 0.270 0.418
2018-02-20 0.270 0.409
2017-08-11 0.270 0.509
2017-08-03 0.270 0.634
2017-02-21 0.270 0.553
2016-08-01 0.270 0.581
2016-02-22 0.270 0.679
2015-08-04 0.270 0.636
2015-02-24 0.270 0.551
2014-11-26 0.270 0.511
2014-11-25 0.270 0.552
2014-07-31 0.240 0.525
2014-02-18 0.240 0.499
2013-08-08 0.240 0.460
2013-08-01 0.240 0.464
2013-02-12 0.240 0.522
2012-08-13 0.240 0.492
2012-02-28 0.240 0.519
2011-08-03 0.180 0.416
2011-02-22 0.180 0.349
2010-08-04 0.180 0.408
2010-02-24 0.180 0.488
2009-08-04 0.180 0.481
2009-02-24 0.180 0.566

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cubic is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Cubic is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Cubic's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Cubic's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Cubic's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Cubic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cubic afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cubic has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cubic's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bradley Feldmann
COMPENSATION $4,622,731
AGE 57
TENURE AS CEO 5.3 years
CEO Bio

Mr. Bradley H. Feldmann, also known as Brad, has been the President of Cubic Corporation since January 31, 2013, has been its chairman since February 19, 2018 and its Chief Executive Officer since July 1, 2014. Mr. Feldmann has over 18 years of general management experience in the government contracting sector. Throughout his career, he has made significant contributions implementing strategies to increase the presence and value of corporate enterprises within the homeland security and defense sectors. That experience and those successes include senior-level executive roles implementing management and operations processes, strategic vision and business development efforts in both new and existing markets for Department of Defense (DoD), Department of Justice (DOJ), Department of Homeland Security (DHS) and the Intelligence Community. Mr. Feldmann served as the President of Cubic Defense Applications, Inc. at Cubic Corp. since May 2008. He served as the Chief Operating Officer at Cubic Corp. from January 31, 2013 to July 1, 2014. He has also led several innovation initiatives, such as the implementation of IdeaSpark. Mr. Feldmann served as Chief Operating Officer of OMNIPLEX World Services Corporation from 2007 to 2008. Prior to OMNIPLEX, he served as President and Chief Executive Officer of USProtect Corporation from 2005 to 2006. Mr. Feldmann served as Executive Vice President of Business Development and Strategy of Mantech International Corporation from 2000 to 2004. He joined ManTech International Corp. in 2000 and was responsible for business development and overall corporate development strategy. He served as Senior Vice President of ManTech International Corp. and served as its President of Information Technology Group since 2000. From June 7, 1999 to 2000, he served as Senior Vice President and Chief Operating Officer of Comptek Research Inc. From 1989 to June 1999, he worked for Cubic Defense Systems, Inc., a subsidiary of Cubic Corporation, where he served in various positions, including Senior Vice President and Chief Operating Officer. He served as the president of the companies comprising the Cubic Defense Systems segment from 2008 to March 2013. Mr. Feldmann has led organizations in both the federal background investigations and the professional Security Officers' market niches, during which he successfully implemented efforts to reorganize for long term growth, implement processes to improve business performance and maximize revenue and profit. He has been a Director at Cubic Corporation since May 1, 2014. He served with the U.S. Air Force for five years and received two Meritorious Service Medals. He serves on the board of several organizations, including the National Defense Industrial Association and UrbanLife. He is a member of the Aerospace Industries Association's Board of Governors. In 2017, he was named “Most Admired CEO” by the San Diego Business Journal for his exceptional organizational leadership and was awarded with the Bronze Stevie® Award in the “Executive of the Year” category by the American Business Awards. In 2016, he also received the Duane Roth Distinguished Contribution Award for Technology by CONNECT for his contributions in elevating San Diego as a global innovation economy. He is a Fellow of the National Association of Corporate Directors. He holds an M.B.A. in Finance with honors from San Diego State University. He is a graduate of the Stanford Executive Institute. He is also a distinguished graduate of the U.S. Air Force Academy with a Bachelor of Science in Electrical Engineering and a top graduate of the USAF Squadron Officer School.

CEO Compensation
  • Bradley's compensation has increased in line with Cubic recently becoming profitable.
  • Bradley's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cubic management team in years:

2.1
Average Tenure
57
Average Age
  • The tenure for the Cubic management team is about average.
Management Team

Bradley Feldmann

TITLE
Chairman
COMPENSATION
$5M
AGE
57
TENURE
5.3 yrs

Anshooman Aga

TITLE
CFO & Executive VP
COMPENSATION
$2M
AGE
43
TENURE
2.1 yrs

Matt Cole

TITLE
Senior Vice President
COMPENSATION
$2M
AGE
39
TENURE
4.1 yrs

Dave Buss

TITLE
Senior Advisor & Senior VP
COMPENSATION
$1M
AGE
62
TENURE
3.5 yrs

Mike Twyman

TITLE
Senior VP & President of Cubic Mission Solutions
COMPENSATION
$1M
AGE
58
TENURE
3.5 yrs

Jim Colson

TITLE
VP & CTO
TENURE
0.4 yrs

Dan Hedstrom

TITLE
Chief Information Officer & VP
TENURE
0.8 yrs

Diane Dyer

TITLE
Director of Investor Relations

Kirsten Nielsen

TITLE
Vice President of Investor Relations
TENURE
2 yrs

Hilary Hageman

TITLE
Senior VP
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the Cubic board of directors in years:

3.7
Average Tenure
64
Average Age
  • The tenure for the Cubic board of directors is about average.
Board of Directors

Bradley Feldmann

TITLE
Chairman
COMPENSATION
$5M
AGE
57
TENURE
1.8 yrs

Bruce Blakley

TITLE
Independent Director
COMPENSATION
$153K
AGE
74
TENURE
11.8 yrs

John Warner

TITLE
Independent Director
COMPENSATION
$155K
AGE
77
TENURE
12 yrs

Steve Norris

TITLE
Independent Director
COMPENSATION
$150K
AGE
74
TENURE
5.6 yrs

Dave Melcher

TITLE
Lead Independent Director
COMPENSATION
$99K
AGE
64
TENURE
0.4 yrs

Steve Shewmaker

TITLE
Member of Advisory Board
COMPENSATION
$1M
AGE
68

Jan Hamby

TITLE
Independent Director
COMPENSATION
$141K
AGE
61
TENURE
4.6 yrs

Maureen Breakiron-Evans

TITLE
Independent Director
COMPENSATION
$140K
AGE
64
TENURE
2.8 yrs

Prith Banerjee

TITLE
Independent Director
COMPENSATION
$6K
AGE
59
TENURE
1.2 yrs

Bruce Baird

TITLE
Member of Advisory Board
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Buy Edwin Guiles Individual 17. May 19 17. May 19 1,000 $62.37 $62,278
13. May 19 Buy John Warner Individual 10. May 19 13. May 19 5,000 $61.00 $301,250
13. May 19 Buy Mark Harrison Individual 10. May 19 10. May 19 168 $59.67 $10,000
10. May 19 Buy Anshooman Aga Individual 08. May 19 08. May 19 123 $58.50 $7,186
10. May 19 Buy Bradley Feldmann Individual 08. May 19 10. May 19 697 $58.80 $40,807
10. May 19 Buy James Edwards Individual 08. May 19 08. May 19 167 $59.31 $9,904
06. Dec 18 Buy Anshooman Aga Individual 06. Dec 18 06. Dec 18 300 $54.40 $16,321
X
Management checks
We assess Cubic's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cubic has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Should Investors React To Cubic Corporation's (NYSE:CUB) CEO Pay?

Bradley Feldmann became the CEO of Cubic Corporation (NYSE:CUB) in 2014. … Our data indicates that Cubic Corporation is worth US$2.2b, and total annual CEO compensation is US$4.6m. … NYSE:CUB CEO Compensation, September 2nd 2019Is Cubic Corporation Growing?

Simply Wall St -

We Think Cubic (NYSE:CUB) Is Taking Some Risk With Its Debt

While Cubic's debt to EBITDA ratio (4.2) suggests that it uses some debt, its interest cover is very weak, at 1.5, suggesting high leverage. … In large part that's due to the company's significant depreciation and amortisation charges, which arguably mean its EBITDA is a very generous measure of earnings, and its debt may be more of a burden than it first appears. … Our View Cubic's conversion of EBIT to free cash flow and interest cover definitely weigh on it, in our esteem.

Simply Wall St -

Estimating The Intrinsic Value Of Cubic Corporation (NYSE:CUB)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $125.0m $126.0m $127.7m $130.0m $132.7m $135.7m $139.0m $142.4m $146.1m $149.9m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 1.38% Est @ 1.78% Est @ 2.07% Est @ 2.27% Est @ 2.41% Est @ 2.5% Est @ 2.57% Est @ 2.62% Present Value ($, Millions) Discounted @ 8.73% $115.0 $106.6 $99.4 $93.0 $87.3 $82.1 $77.3 $72.9 $68.8 $64.9 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $867.3m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

Should We Be Cautious About Cubic Corporation's (NYSE:CUB) ROE Of 0.3%?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Cubic: 0.3% = US$8.2m ÷ US$943m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Cubic Have A Good Return On Equity? … How Does Debt Impact Return On Equity?

Simply Wall St -

If You Had Bought Cubic (NYSE:CUB) Stock Three Years Ago, You Could Pocket A 65% Gain Today

For example, Cubic Corporation (NYSE:CUB) shareholders have seen the share price rise 65% over three years, well in excess of the market return (37%, not including dividends). … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. … So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.

Simply Wall St -

Is It Too Late To Consider Buying Cubic Corporation (NYSE:CUB)?

Cubic Corporation (NYSE:CUB), which is in the aerospace & defense business, and is based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … It’s trading around 7.59% above my intrinsic value, which means if you buy Cubic today, you’d be paying a relatively reasonable price for it. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Are Cubic Corporation's (NYSE:CUB) Interest Costs Too High?

At the current liabilities level of US$524m, it seems that the business has been able to meet these obligations given the level of current assets of US$709m, with a current ratio of 1.35x. … The current ratio is calculated by dividing current assets by current liabilities. … Next Steps: Although CUB’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

Why You Should Care About Cubic Corporation’s (NYSE:CUB) Low Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Does Cubic Corporation (NYSE:CUB) Have A Volatile Share Price?

If you're interested in Cubic Corporation (NYSE:CUB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Should We Be Cautious About Cubic Corporation's (NYSE:CUB) ROE Of 0.9%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.0091 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

Cubic Corporation provides various integrated solutions worldwide. Its solutions enhance the situational understanding for transportation, defense, and training customers, as well as for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) customers. The company operates through three segments: Cubic Transportation Systems (CTS), Cubic Global Defense Systems (CGD), and Cubic Mission Solutions (CMS). The CTS segment integrates payment and information technology and services for intelligent travel solutions. It delivers integrated systems for transportation and traffic management; and tools for travelers to choose the smartest and easiest way to travel and pay for their journeys, as well as enables transportation authorities and agencies to manage demand across the entire transportation network. The CGD Systems segment supplies live, virtual, constructive, and game-based training solutions to the U.S. Department of Defense, other U.S. government agencies, and allied nations. The CMS segment offers networked C4ISR solutions for defense, intelligence, security, and commercial missions. The company was incorporated in 1949 and is headquartered in San Diego, California.

Details
Name: Cubic Corporation
CUB
Exchange: NYSE
Founded: 1949
$2,289,436,226
31,178,486
Website: http://www.cubic.com
Address: Cubic Corporation
9333 Balboa Avenue,
San Diego,
California, 92123,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CUB Common Stock New York Stock Exchange US USD 02. Jan 1968
DB UBQ Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
Number of employees
Current staff
Staff numbers
5,600
Cubic employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/17 23:37
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/08/06
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.