DB:UBQ

Stock Analysis Report

Executive Summary

Cubic Corporation provides various integrated solutions worldwide.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Cubic's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

UBQ

-0.9%

DE Aerospace & Defense

1.4%

DE Market


1 Year Return

9.5%

UBQ

11.3%

DE Aerospace & Defense

3.8%

DE Market

Return vs Industry: UBQ underperformed the German Aerospace & Defense industry which returned 11.3% over the past year.

Return vs Market: UBQ exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

UBQIndustryMarket
7 Day3.2%-0.9%1.4%
30 Day-1.6%-2.7%1.3%
90 Day9.0%-1.9%3.1%
1 Year10.0%9.5%13.7%11.3%7.0%3.8%
3 Year75.7%73.3%73.4%62.3%18.5%8.3%
5 Year82.7%77.9%136.6%107.8%42.2%22.9%

Price Volatility Vs. Market

How volatile is Cubic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cubic undervalued compared to its fair value and its price relative to the market?

65.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UBQ (€64) is trading above our estimate of fair value (€51.45)

Significantly Below Fair Value: UBQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UBQ is poor value based on its PE Ratio (65.6x) compared to the Aerospace & Defense industry average (21.7x).

PE vs Market: UBQ is poor value based on its PE Ratio (65.6x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: UBQ is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: UBQ is overvalued based on its PB Ratio (2.3x) compared to the XE Aerospace & Defense industry average (1.9x).


Next Steps

Future Growth

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

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UBQ's forecast earnings growth (40.8% per year) is above the savings rate (0.2%).

Earnings vs Market: UBQ's earnings (40.8% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UBQ's revenue (9.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: UBQ's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UBQ's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Cubic performed over the past 5 years?

-37.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UBQ's earnings have declined by -37.1% per year over the past 5 years.

Accelerating Growth: UBQ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: UBQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (16.4%).


Return on Equity

High ROE: UBQ's Return on Equity (2.5%) is considered low.


Return on Assets

ROA vs Industry: UBQ's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: UBQ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cubic's financial position?


Financial Position Analysis

Short Term Liabilities: UBQ's short term assets ($717.8M) exceeds its short term liabilities ($552.2M)

Long Term Liabilities: UBQ's short term assets (717.8M) exceeds its long term liabilities (297.1M)


Debt to Equity History and Analysis

Debt Level: UBQ's debt to equity ratio (51.1%) is considered high

Reducing Debt: UBQ's debt to equity ratio has increased from 14.3% to 51.1% over the past 5 years.

Debt Coverage: UBQ's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: UBQ's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: UBQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: UBQ's debt is covered by short term assets (assets are 1.453990x debt).


Next Steps

Dividend

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

0.39%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: UBQ's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: UBQ's dividend (0.39%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: UBQ is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: UBQ is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: UBQ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UBQ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Bradley Feldmann (57yo)

5.3yrs

Tenure

US$4,622,731

Compensation

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,  ...


CEO Compensation Analysis

Compensation vs. Market: Bradley's total compensation ($USD4.62M) is about average for companies of similar size in the German market ($USD1.56M).

Compensation vs Earnings: Bradley's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

Experienced Management: UBQ's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

64yo

Average Age

Experienced Board: UBQ's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$55,80117 May 19
Edwin Guiles
EntityIndividual
Shares1,000
Max PriceUS$55.88
BuyUS$268,20313 May 19
John Warner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$54.31
BuyUS$8,89513 May 19
Mark Harrison
EntityIndividual
Shares167.59
Max PriceUS$53.08
BuyUS$6,41310 May 19
Anshooman Aga
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares122.83
Max PriceUS$52.21
BuyUS$36,29810 May 19
Bradley Feldmann
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares697.34
Max PriceUS$52.30
BuyUS$8,83810 May 19
James Edwards
EntityIndividual
Shares167
Max PriceUS$52.92
BuyUS$14,35206 Dec 18
Anshooman Aga
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares300
Max PriceUS$47.84

Ownership Breakdown


Management Team

  • Bradley Feldmann (57yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$4.62m
  • Matt Cole (39yo)

    Senior Vice President

    • Tenure: 4yrs
    • Compensation: US$1.50m
  • Diane Dyer

    Director of Investor Relations

    • Tenure: 0yrs
  • Mike Twyman (58yo)

    Senior VP & President of Cubic Mission Solutions

    • Tenure: 3.4yrs
    • Compensation: US$1.43m
  • Dave Buss (62yo)

    Senior Advisor & Senior VP

    • Tenure: 3.4yrs
    • Compensation: US$1.30m
  • Anshooman Aga (43yo)

    CFO & Executive VP

    • Tenure: 2yrs
    • Compensation: US$1.60m
  • Kirsten Nielsen

    Vice President of Investor Relations

    • Tenure: 1.9yrs
  • Dan Hedstrom

    Chief Information Officer & VP

    • Tenure: 0.7yrs
  • Jim Colson

    VP & CTO

    • Tenure: 0.3yrs
  • Hilary Hageman

    Senior VP

    • Tenure: 0yrs

Board Members

  • Bradley Feldmann (57yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$4.62m
  • John Warner (77yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$155.00k
  • Maureen Breakiron-Evans (64yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$140.00k
  • Steve Norris (74yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$150.00k
  • Prith Banerjee (59yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$5.57k
  • Steve Shewmaker (68yo)

    Member of Advisory Board

    • Tenure: 0yrs
    • Compensation: US$1.38m
  • Bruce Blakley (74yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$152.50k
  • Dave Melcher (64yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$98.69k
  • Bruce Baird

    Member of Advisory Board

    • Tenure: 0yrs
  • Jan Hamby (61yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$141.25k

Company Information

Cubic Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cubic Corporation
  • Ticker: UBQ
  • Exchange: DB
  • Founded: 1949
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$2.176b
  • Listing Market Cap: US$1.953b
  • Shares outstanding: 31.18m
  • Website: https://www.cubic.com

Number of Employees


Location

  • Cubic Corporation
  • 9333 Balboa Avenue
  • San Diego
  • California
  • 92123
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
UBQDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:22
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.