DB:UBQ

Stock Analysis Report

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Executive Summary

Cubic Corporation designs, integrates, and operates systems, products, and services for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) customers worldwide. More Details


Snowflake Analysis

Moderate growth potential with worrying 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

Stable Share Price: UBQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

UBQ

-1.9%

DE Aerospace & Defense

-1.0%

DE Market


1 Year Return

-42.2%

UBQ

-29.8%

DE Aerospace & Defense

6.0%

DE Market

Return vs Industry: UBQ underperformed the German Aerospace & Defense industry which returned -29.8% over the past year.

Return vs Market: UBQ underperformed the German Market which returned 6% over the past year.


Shareholder returns

UBQIndustryMarket
7 Day1.1%-1.9%-1.0%
30 Day-1.6%-1.2%1.6%
90 Day-8.9%-1.9%3.6%
1 Year-41.8%-42.2%-29.2%-29.8%8.5%6.0%
3 Year-13.0%-14.2%-12.2%-17.2%4.7%-3.8%
5 Year4.9%2.2%26.8%14.3%37.4%18.7%

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?

2.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: UBQ (€37) is trading above our estimate of fair value (€36.34)

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


Price To Earnings Ratio

PE vs Industry: UBQ is unprofitable, so we can't compare its PE Ratio to the XE Aerospace & Defense industry average.

PE vs Market: UBQ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UBQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UBQ is overvalued based on its PB Ratio (2.1x) compared to the XE Aerospace & Defense industry average (1.7x).


Next Steps

Future Growth

How is Cubic forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

120.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UBQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: UBQ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UBQ's is expected to become profitable in the next 3 years.

Revenue vs Market: UBQ's revenue (4.3% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: UBQ's revenue (4.3% 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 (19.3%).


Next Steps

Past Performance

How has Cubic performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBQ is currently unprofitable.

Growing Profit Margin: UBQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UBQ is unprofitable, and losses have increased over the past 5 years at a rate of 6% per year.

Accelerating Growth: Unable to compare UBQ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UBQ is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-6.7%).


Return on Equity

High ROE: UBQ has a negative Return on Equity (-2.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cubic's financial position?


Financial Position Analysis

Short Term Liabilities: UBQ's short term assets ($735.9M) exceed its short term liabilities ($599.2M).

Long Term Liabilities: UBQ's short term assets ($735.9M) do not cover its long term liabilities ($748.7M).


Debt to Equity History and Analysis

Debt Level: UBQ's debt to equity ratio (96.6%) is considered high.

Reducing Debt: UBQ's debt to equity ratio has increased from 22.4% to 96.6% over the past 5 years.

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

Interest Coverage: UBQ is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UBQ's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.15%).

High Dividend: UBQ's dividend (0.45%) is low compared to the top 25% of dividend payers in the German market (3.66%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Brad Feldmann (58 yo)

6.17yrs

Tenure

US$5,881,964

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: Brad's total compensation ($USD5.88M) is above average for companies of similar size in the German market ($USD1.55M).

Compensation vs Earnings: Brad's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Feldmann
Chairman6.17yrsUS$5.88m0.19%
$ 2.3m
Anshooman Aga
CFO & Executive VP2.92yrsUS$1.87m0.013%
$ 159.8k
Michael Knowles
Senior VP & President of Cubic Mission and Performance Solutions1.92yrsUS$1.15m0.0051%
$ 60.2k
Michael Twyman
Senior VP and President of Cubic Mission & Performance Solutions4.33yrsUS$1.79m0.12%
$ 1.4m
Jim Colson
VP & CTO1.25yrsno datano data
Kirsten Nielsen
Vice President of Investor Relations2.83yrsno datano data
Hilary Hageman
Senior VP0.92yrno datano data
Denise Brucker
Vice President of Complianceno datano datano data
Laura Chon
Senior Director of Global Marketing & Corporate Communicationsno datano datano data
Norman Bishop
Vice President of Corporate Development6.83yrsno datano data
Grace Lee
Senior VP and Chief Human Resources & Diversity Officer1.92yrsno data0.015%
$ 176.5k
Al Sargeant
SVP and GM - The Strategic Solutions Group for Mission Support Services5.83yrsno datano data

2.9yrs

Average Tenure

52yo

Average Age

Experienced Management: UBQ's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Feldmann
Chairman6.17yrsUS$5.88m0.19%
$ 2.3m
Maureen Breakiron-Evans
Independent Director3.58yrsUS$217.00k0.041%
$ 482.6k
Steven Norris
Independent Director6.42yrsUS$222.00k0.019%
$ 229.1k
Ian Dobbs
Member of Advisory Boardno datano datano data
David Begg
Member of Advisory Boardno datano datano data
Prithviraj Banerjee
Independent Director2yrsUS$212.50k0.0034%
$ 39.8k
Bruce Blakley
Independent Director12.58yrsUS$226.50k0.029%
$ 337.7k
David Melcher
Lead Independent Director1.17yrsUS$225.63k0.022%
$ 266.1k
John Young
Member of Advisory Boardno datano datano data
Bruce Baird
Member of Advisory Boardno datano datano data
Janice Hamby
Independent Director5.42yrsUS$217.93k0.016%
$ 185.4k
Leon Daniels
Member of Advisory Boardno datano datano data

3.6yrs

Average Tenure

65yo

Average Age

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.390b
  • Listing Market Cap: US$1.185b
  • Shares outstanding: 31.33m
  • 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 designs, integrates, and operates systems, products, and services for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) customers worldwi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 03:30
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.