NYSE:CUB

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

Reasonable growth potential and fair value.


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: CUB is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: CUB's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-6.7%

CUB

0.6%

US Aerospace & Defense

-0.06%

US Market


1 Year Return

2.9%

CUB

-24.4%

US Aerospace & Defense

19.0%

US Market

Return vs Industry: CUB exceeded the US Aerospace & Defense industry which returned -24.4% over the past year.

Return vs Market: CUB underperformed the US Market which returned 19% over the past year.


Shareholder returns

CUBIndustryMarket
7 Day-6.7%0.6%-0.06%
30 Day0.05%8.8%4.4%
90 Day25.0%5.4%6.3%
1 Year3.4%2.9%-8.4%-24.4%21.7%19.0%
3 Year0.4%-0.9%12.2%-10.1%46.4%36.7%
5 Year28.5%25.3%64.8%24.1%91.0%69.9%

Long-Term 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

Valuation

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

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CUB ($60.83) is trading below our estimate of fair value ($82.35)

Significantly Below Fair Value: CUB is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CUB is good value based on its PB Ratio (2x) compared to the US Aerospace & Defense industry average (2.9x).


Next Steps

Future Growth

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

91.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: CUB's revenue (5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: CUB's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CUB's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has Cubic performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUB is currently unprofitable.

Growing Profit Margin: CUB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CUB is unprofitable, and losses have increased over the past 5 years at a rate of 1.4% per year.

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

Earnings vs Industry: CUB is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-1.9%).


Return on Equity

High ROE: CUB has a negative Return on Equity (0.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cubic's financial position?


Financial Position Analysis

Short Term Liabilities: CUB's short term assets ($763.1M) exceed its short term liabilities ($586.8M).

Long Term Liabilities: CUB's short term assets ($763.1M) exceed its long term liabilities ($749.3M).


Debt to Equity History and Analysis

Debt Level: CUB's debt to equity ratio (83.6%) is considered high.

Reducing Debt: CUB's debt to equity ratio has increased from 24.8% to 83.6% over the past 5 years.

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

Interest Coverage: CUB 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?

0.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CUB's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: CUB's dividend (0.44%) is low compared to the top 25% of dividend payers in the US market (4.15%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: CUB is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Brad Feldmann (58 yo)

6.33yrs

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 ($USD5.88M) is above average for companies of similar size in the US market ($USD4.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Feldmann
Chairman6.33yrsUS$5.88m0.25%
$ 4.8m
Anshooman Aga
CFO & Executive VP3.08yrsUS$1.87m0.026%
$ 498.0k
Michael Knowles
Senior VP & President of Cubic Mission and Performance Solutions2.08yrsUS$1.15m0.013%
$ 241.2k
Michael Twyman
Senior VP and President of Cubic Mission & Performance Solutions4.5yrsUS$1.79m0.12%
$ 2.3m
Jim Colson
VP & CTO1.42yrsno datano data
Kirsten Nielsen
Vice President of Investor Relations3yrsno datano data
Hilary Hageman
Senior VP1.08yrsno data0.0022%
$ 41.4k
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 Development7yrsno datano data
Grace Lee
Senior VP and Chief Human Resources & Diversity Officer2.08yrsno data0.028%
$ 532.7k
Al Sargeant
SVP and GM - The Strategic Solutions Group for Mission Support Services6yrsno datano data

3.0yrs

Average Tenure

52yo

Average Age

Experienced Management: CUB's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Feldmann
Chairman6.33yrsUS$5.88m0.25%
$ 4.8m
Maureen Breakiron-Evans
Independent Director3.75yrsUS$217.00k0.045%
$ 872.3k
Steven Norris
Independent Director6.58yrsUS$222.00k0.028%
$ 535.4k
Ian Dobbs
Member of Advisory Boardno datano datano data
David Begg
Member of Advisory Boardno datano datano data
Prithviraj Banerjee
Independent Director2.17yrsUS$212.50k0.014%
$ 266.0k
Bruce Blakley
Independent Director12.75yrsUS$226.50k0.039%
$ 745.2k
David Melcher
Lead Independent Director1.33yrsUS$225.63k0.033%
$ 630.9k
John Young
Member of Advisory Boardno datano datano data
Bruce Baird
Member of Advisory Boardno datano datano data
Janice Hamby
Independent Director5.58yrsUS$217.93k0.026%
$ 496.3k
Leon Daniels
Member of Advisory Boardno datano datano data

3.8yrs

Average Tenure

65yo

Average Age

Experienced Board: CUB's board of directors are considered experienced (3.8 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: CUB
  • Exchange: NYSE
  • Founded: 1949
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$1.918b
  • Shares outstanding: 31.52m
  • 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 Analysis2020/11/23 23:30
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.