CAA · Basic Materials
$12.24
Profit generated per $1 of shareholder investment
Annual dividends as percentage of stock price
4.02% yield is well below the 6% target. Not suitable for Barsi's income strategy.
Yield (TTM)
3.27%
P/E Ratio
6.51
P/B Ratio
0.89
52W Low
$8.74
52W High
$13.22
Owner Earnings
$0.05B
Intrinsic Value
$0.71B
EPS CAGR
-9.1%
Analysis based on Warren Buffett and Luiz Barsi methodologies. Not financial advice. Learn how we analyze stocks →
Buffett analysis may be affected.
ROE dropped to 14.4% in a weak year. Buffett requires consistency - one bad year can reveal underlying vulnerability.
Net Income ÷ Shareholders' Equity × 100How much the company owes vs. what it owns
Acceptable. Debt level (0.37) is within Buffett's limit of 0.5.
Total Debt ÷ Shareholders' EquityProfit after production costs, before overhead
30.5% average margin is below the 40% standard. May indicate commodity-like business with weak pricing power.
(Revenue - Cost of Goods Sold) ÷ Revenue × 100Short-term assets vs. short-term debts
Adequate liquidity. 1.85 ratio meets Buffett's 1.5 target.
Current Assets ÷ Current LiabilitiesReal cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Operating Cash Flow - Capital ExpendituresProfit generated per $1 of capital invested in the business
-3.5% ROIC is below the 11.0% threshold. Company may not be creating value above cost of capital.
NOPAT ÷ Invested Capital × 100, where NOPAT = Operating Income × (1 - Tax Rate)Consistency of profits over time
Cyclical business - earnings naturally fluctuate with commodity prices. Focus on dividend consistency instead.
Count of positive EPS years in 10-year historyReturn on investment at current price (inverse of P/E)
Strong value. 14.9% earnings yield exceeds threshold, and Graham Number (5.8) indicates undervaluation.
(EPS ÷ Stock Price) × 100Discount to intrinsic value (Two-Stage DCF)
Exceptional 72% margin of safety. Buying $1 of value for 50¢ or less.
(Intrinsic Value - Market Cap) ÷ Intrinsic Value × 100. Intrinsic Value = PV of 10-year growth period + PV of terminal value (perpetuity at 2.5% growth), discounted at Treasury rate + industry risk premium (6-9%).Annual Dividends per Share ÷ Stock Price × 100Track record of consistent dividend payments
Dividend was cut 50% in 2024. Cuts over 30% disqualify a stock.
Highest price to lock in 6% yield
Current price ($12.24) is 49% above the ceiling. Wait for a drop to lock in 6% yield.
6-Year Average Annual Dividend ÷ 0.06Industry category of the business
Basic Materials is not a BESST sector. Barsi's methodology focuses only on essential services with predictable demand.