Education
About Us
Working with TipRanks
Follow Us
Cabot Corporation (CBT)
NYSE:CBT
Top Page
Cabot
(NYSE:CBT)
Select Model
Select Model
Rating:66Neutral
Price Target:
$78.00
▲(8.64% Upside)
Cabot's overall score reflects strong financial performance and attractive valuation, tempered by bearish technical indicators and challenges highlighted in the earnings call. The company's strategic initiatives and solid cash flow generation are positive, but macroeconomic uncertainties and competitive pressures in key segments present risks.
Positive Factors
Operational Efficiency
Stable profit margins indicate strong operational efficiency, allowing Cabot to maintain profitability despite revenue challenges.
Cash Flow Generation
Robust cash flow generation supports financial flexibility and shareholder returns, underpinning long-term business sustainability.
Strategic Acquisition
The acquisition is expected to be accretive in the first year, enhancing Cabot's market position in reinforcement materials.
Negative Factors
Decreased Volumes
Decreased volumes indicate weaker demand, which could pressure revenue and profitability if not addressed.
Challenges in Tire Sector
Increased competition from imports pressures Cabot's key market, potentially impacting sales and margins in the tire sector.
Macroeconomic Uncertainty
Economic uncertainty can affect demand and pricing, posing risks to Cabot's revenue and strategic planning.
Cabot (CBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.85B
Dividend Yield2.72%
Average Volume (3M)479.73K
Price to Earnings (P/E)12.1
Beta (1Y)0.89
Revenue Growth-7.04%
EPS Growth-11.28%
CountryUS
Employees4,151
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.70
Shares Outstanding52,898,777
10 Day Avg. Volume336,338
30 Day Avg. Volume479,728
Financial Highlights & Ratios
PEG Ratio-1.03
Price to Book (P/B)2.63
Price to Sales (P/S)1.10
P/FCF Ratio10.44
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit5.44
Enterprise Value/Ebitda6.43
Forecast
1Y Price Target
$69.33Price Target Upside-3.44% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Cabot Business Overview & Revenue Model
Company DescriptionCabot Corporation operates as a specialty chemicals and performance materials company. It operates through three segments: Reinforcement Materials, Performance Chemicals, and Purification Solutions. The company offers reinforcing carbons used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites. It also provides specialty carbons used in inks, coatings, plastics, adhesives, toners, batteries, and displays applications; masterbatch and conductive compound products for use in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; inkjet colorants used in the inkjet printing applications; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; fumed alumina used in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries; and aerogel, a hydrophobic, silica-based particle for use in various thermal insulation and specialty chemical applications. In addition, the company offers activated carbon products used for the purification of water, air, food and beverages, pharmaceuticals, and other liquids and gases; and activated carbon solutions for activated carbon injection in coal-fired utilities, mobile water filter units, and carbon reactivation services. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneyCabot generates revenue through multiple key streams, primarily by manufacturing and selling specialty chemicals and performance materials. The company's largest revenue source comes from its carbon black segment, which supplies high-performance carbon blacks used in tire manufacturing and other rubber applications. Additionally, Cabot earns revenue from its performance chemicals segment, which includes products like fumed silica and specialty compounds that cater to a variety of industrial applications. Strategic partnerships with major players in the automotive and electronics industries further bolster its earnings, as they provide consistent demand for Cabot's innovative solutions. The company's focus on sustainability and developing environmentally-friendly products also positions it favorably in a market increasingly driven by eco-conscious consumer behavior.
Cabot Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 03, 2026
Earnings Call Sentiment Neutral
While Cabot achieved record earnings per share and made strategic progress, challenges like decreased volumes, tire sector competition, and macroeconomic uncertainty weigh heavily on future projections.Q4-2025 Updates
Positive Updates
Record Adjusted Earnings Per Share
Cabot delivered a record adjusted earnings per share of $7.25 for fiscal year 2025, representing a 3% increase year-over-year.
Performance Chemicals EBIT Growth
Performance Chemicals EBIT increased by 18% year-over-year, driven by higher volumes in fumed metal oxides and battery materials product lines.
Robust Cash Flow and Shareholder Returns
Cabot generated operating cash flow of $665 million and free cash flow of $391 million, allowing for $264 million returned to shareholders through dividends and share repurchases.
Strategic Acquisition in Mexico
Cabot entered into an agreement to acquire Bridgestone's reinforcing carbon plant in Mexico, expected to be accretive in the first year.
Sustainability Recognition
Cabot received a Platinum rating from EcoVadis for the fifth consecutive year, placing it among the top 1% of companies in the manufacturing of basic chemicals.
Negative Updates
Decreased Volumes Across Segments
Volumes across both Reinforcement Materials and Performance Chemicals were down by 5% year-over-year, impacted by weaker customer demand and economic uncertainty.
Challenges in Tire Sector
Persistent elevated levels of Asian tire imports into Western geographies reduced local tire production and created a more challenging competitive environment.
Uncertainty in Global Trade and Economic Indicators
2025 was characterized by turbulent global trade and macroeconomic conditions, affecting demand projections and contract negotiations.
Lower Expected Earnings for 2026
Adjusted EPS for fiscal year 2026 is projected to be between $6 and $7, reflecting potential weak demand and pricing pressures.
Company Guidance
During the Q4 FY 2025 earnings conference call, Cabot Corporation provided detailed guidance on its financial performance and strategic direction. The company reported a record adjusted earnings per share of $7.25, a 3% increase year-over-year, despite a decrease in volumes across both its Reinforcement Materials and Performance Chemicals segments. Total consolidated EBIT saw a mixed year-over-year performance, with Reinforcement Materials EBIT down 5% and Performance Chemicals EBIT up 18%. Cabot generated an adjusted EBITDA of $804 million, up 3% from the previous year, with an adjusted ROIC of 18%. The company maintained a net debt-to-EBITDA ratio of 1.2x and liquidity of $1.5 billion. For fiscal 2025, Cabot generated operating cash flow of $665 million and free cash flow of $391 million, returning $264 million to shareholders through dividends and share repurchases. Looking forward to fiscal 2026, Cabot expects adjusted earnings per share to be between $6 and $7, reflecting ongoing challenges in the macroeconomic environment and global trade dynamics. The company plans to continue leveraging its strengths in operational excellence, maintaining a strong balance sheet, and focusing on strategic growth areas like battery materials to navigate these uncertainties.Cabot Financial Statement Overview
Summary
Cabot demonstrates strong profitability and operational efficiency with healthy margins and improved cash flow generation. However, negative revenue growth and a low equity ratio pose risks.Income Statement
Cabot's income statement shows a stable gross profit margin of around 25% and a net profit margin of approximately 9% for the latest year. However, the revenue growth rate has been negative in recent years, indicating a decline in sales. Despite this, the company maintains a healthy EBIT margin of 17.24% and an EBITDA margin of 21.38%, reflecting strong operational efficiency.Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.73, suggesting manageable leverage. Return on equity stands at 21.35%, indicating efficient use of equity to generate profits. However, the equity ratio is relatively low, which could pose risks if asset values fluctuate.Cash Flow
Cabot's cash flow statement highlights a positive free cash flow growth rate of 12.36%, demonstrating improved cash generation. The operating cash flow to net income ratio is 0.69, indicating good cash conversion. However, the free cash flow to net income ratio of 0.59 suggests room for improvement in translating profits into free cash flow.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.71B | 3.71B | 3.99B | 3.93B | 4.32B | 3.41B |
| Gross Profit | 940.00M | 940.00M | 960.00M | 839.00M | 885.00M | 799.00M |
| EBITDA | 795.00M | 794.00M | 761.00M | 685.00M | 537.00M | 615.00M |
| Net Income | 331.00M | 331.00M | 380.00M | 445.00M | 209.00M | 250.00M |
Balance Sheet | ||||||
| Total Assets | 3.84B | 3.81B | 3.74B | 3.60B | 3.52B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 239.00M | 258.00M | 223.00M | 238.00M | 206.00M | 168.00M |
| Total Debt | 1.22B | 1.13B | 1.14B | 1.36B | 1.53B | 1.25B |
| Total Liabilities | 2.15B | 2.11B | 2.15B | 2.20B | 2.49B | 2.22B |
| Stockholders Equity | 1.54B | 1.55B | 1.43B | 1.26B | 898.00M | 947.00M |
Cash Flow | ||||||
| Free Cash Flow | 391.00M | 391.00M | 451.00M | 351.00M | -111.00M | 62.00M |
| Operating Cash Flow | 665.00M | 665.00M | 692.00M | 595.00M | 100.00M | 257.00M |
| Investing Cash Flow | -298.00M | -298.00M | -235.00M | -214.00M | -118.00M | -186.00M |
| Financing Cash Flow | -336.00M | -336.00M | -415.00M | -403.00M | 145.00M | -60.00M |
Cabot Technical Analysis
Positive
71.80
Price Trends
64.93
Positive
70.13
Positive
72.92
Positive
Market Momentum
1.73
Negative
75.54
Negative
93.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBT, the sentiment is Positive. The current price of 71.8 is above the 20-day moving average (MA) of 68.16, above the 50-day MA of 64.93, and below the 200-day MA of 72.92, indicating a bullish trend. The MACD of 1.73 indicates Negative momentum. The RSI at 75.54 is Negative, neither overbought nor oversold. The STOCH value of 93.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBT.
Cabot Risk Analysis
Cabot disclosed 21 risk factors in its most recent earnings report. Cabot reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We are exposed to risks related to the use of artificial intelligence tools by us and others. Q3, 2025
Cabot Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.32B | 11.80 | 4.56% | ― | -6.73% | ― | |
66 Neutral | $3.85B | 12.11 | 21.98% | 2.72% | -7.04% | -11.28% | |
63 Neutral | $3.14B | 27.81 | 4.79% | 3.48% | 1.03% | -24.57% | |
63 Neutral | $4.17B | 30.01 | 12.31% | 1.70% | 4.25% | 56.51% | |
62 Neutral | $3.54B | 31.46 | 6.05% | 1.54% | -1.30% | -36.69% | |
62 Neutral | $4.38B | 65.94 | 7.39% | ― | 19.12% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
CBT
Cabot
73.05
-14.23
-16.30%
FUL
H.B. Fuller Company
66.11
3.40
5.42%
AVNT
Avient
34.34
-4.60
-11.82%
SSL
Sasol
6.81
1.75
34.58%
SXT
Sensient Technologies
98.70
30.38
44.47%
PRM
Perimeter Solutions
27.78
14.80
114.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.