Cabot Corporation (CBT)
NYSE:CBT
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Cabot
(NYSE:CBT)
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Rating:70Outperform
Price Target:
$82.00
▲(7.40% Upside)
Action:ReiteratedDate:03/18/26
CBT scores well on financial strength (solid margins, strong cash flow, and improved leverage) and has supportive valuation (low P/E with a meaningful dividend). The main constraint is weak technical momentum (below key moving averages with negative MACD), while the latest earnings call adds a mixed outlook: strong capital discipline and growth in Battery Materials, but significant near-term weakness in Reinforcement Materials.
Positive Factors
Cash generation
Sustained operating cash flow and meaningful free cash flow provide durable internal funding for dividends, buybacks and strategic investments. Strong FCF reduces reliance on external financing during cyclical downturns and supports disciplined capital allocation over the next 2–6 months.
Negative Factors
Reinforcement EBIT decline
The core reinforcement business is experiencing significant profitability erosion from lower volumes and pricing. As a high-share, historically steady cash driver, a persistent EBIT decline reduces overall company earnings resilience and limits near-term capacity to reallocate capital to growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating cash flow and meaningful free cash flow provide durable internal funding for dividends, buybacks and strategic investments. Strong FCF reduces reliance on external financing during cyclical downturns and supports disciplined capital allocation over the next 2–6 months.
Read all positive factors
Cabot (CBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.99B
Dividend Yield2.72%
Average Volume (3M)471.29K
Price to Earnings (P/E)12.0
Beta (1Y)0.84
Revenue Growth-7.04%
EPS Growth-11.28%
CountryUS
Employees4,151
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.53
Shares Outstanding52,221,603
10 Day Avg. Volume721,547
30 Day Avg. Volume471,289
Financial Highlights & Ratios
PEG Ratio-1.16
Price to Book (P/B)2.63
Price to Sales (P/S)1.10
P/FCF Ratio10.44
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit5.24
Enterprise Value/Ebitda6.20
Forecast
1Y Price Target
$78.67Price Target Upside3.04% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)6.23
Revenue Forecast (FY)$3.54B
Cabot Business Overview & Revenue Model
Company Description
Cabot 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 t...
How the Company Makes Money
Cabot makes money primarily by manufacturing and selling carbon-based materials and additives to industrial customers under negotiated supply arrangements. The company’s key revenue streams generally fall into (1) Reinforcement Materials and (2) P...
Cabot Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong cash generation, disciplined capital allocation, meaningful cost savings, and high-growth momentum in Battery Materials (39% revenue growth, 22% EBITDA margin TTM, plus a strategic PowerCo agreement) are clear positives. These were offset by significant near-term challenges in Reinforcement Materials — notably a 22% EBIT decline, volumes down 7% (Americas -15%), 7%–9% pricing declines in Western regions, and expected Q2 EBIT headwinds. Management is taking active cost, capacity and capital measures to mitigate weakness and is targeting FY2026 EPS of $6.00–$6.50. Given the material operational headwinds in the core Reinforcement Materials business but offsetting strong cash flow and a clear growth trajectory in Battery Materials, the call’s tone is mixed but constructive.Positive Updates
Adjusted EPS and Guidance
Adjusted EPS of $1.53 in Q1; company narrowed full-year FY2026 adjusted EPS guidance to $6.00–$6.50, reflecting finalized Reinforcement Materials customer agreements and inclusion of new assets.
Negative Updates
Reinforcement Materials Profit Decline
Reinforcement Materials EBIT declined by 22% year-over-year in Q1 (CFO cited a $28 million EBIT decrease). Primary drivers: lower volumes and pricing pressure across Western regions tied to elevated tire imports and weak tire production.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS and Guidance
Adjusted EPS of $1.53 in Q1; company narrowed full-year FY2026 adjusted EPS guidance to $6.00–$6.50, reflecting finalized Reinforcement Materials customer agreements and inclusion of new assets.
Read all positive updates
Company Guidance
Cabot narrowed fiscal 2026 adjusted EPS guidance to $6.00–$6.50, reflecting assumptions that Reinforcement Materials volumes will be relatively flat year‑over‑year with lower pricing, Performance Chemicals low single‑digit volume growth, and a sequential Q2 Reinforcement EBIT decline of about $5–$10 million before expected improvement in Q3–Q4; FY26 capital spending is guided to $200–$230 million (about $60 million lower at the midpoint versus 2025 actuals), the operating tax rate is expected to be 27–29%, and management expects continued strong free cash flow supported by Q1 operating cash flow of $126 million and discretionary free cash flow of $71 million (Q1 cash $230 million, liquidity ~ $1.4 billion, debt $1.1 billion, net debt/EBITDA 1.2x); additional actions include targeting $30 million of incremental cost savings in FY26 (on top of $50 million delivered in FY25) while continuing dividends and share repurchases (Q1 repurchases $52 million, dividends $24 million).Cabot Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.61B | 3.71B | 3.99B | 3.93B | 4.32B | 3.41B |
| Gross Profit | 916.00M | 940.00M | 960.00M | 839.00M | 885.00M | 799.00M |
| EBITDA | 773.00M | 794.00M | 761.00M | 685.00M | 537.00M | 615.00M |
| Net Income | 311.00M | 331.00M | 380.00M | 445.00M | 209.00M | 250.00M |
Balance Sheet | ||||||
| Total Assets | 3.76B | 3.81B | 3.74B | 3.60B | 3.52B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 230.00M | 258.00M | 223.00M | 238.00M | 206.00M | 168.00M |
| Total Debt | 1.13B | 1.22B | 1.33B | 1.36B | 1.53B | 1.25B |
| Total Liabilities | 2.03B | 2.11B | 2.15B | 2.20B | 2.49B | 2.22B |
| Stockholders Equity | 1.57B | 1.55B | 1.43B | 1.26B | 898.00M | 947.00M |
Cash Flow | ||||||
| Free Cash Flow | 401.00M | 391.00M | 451.00M | 351.00M | -111.00M | 62.00M |
| Operating Cash Flow | 667.00M | 665.00M | 692.00M | 595.00M | 100.00M | 257.00M |
| Investing Cash Flow | -263.00M | -298.00M | -235.00M | -214.00M | -118.00M | -186.00M |
| Financing Cash Flow | -404.00M | -336.00M | -415.00M | -403.00M | 145.00M | -60.00M |
Cabot Technical Analysis
Positive
76.35
Price Trends
73.06
Positive
69.66
Positive
71.79
Positive
Market Momentum
1.04
Negative
63.42
Neutral
79.23
Neutral
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 76.35 is above the 20-day moving average (MA) of 71.78, above the 50-day MA of 73.06, and above the 200-day MA of 71.79, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 79.23 is Neutral, 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 0 New Risks
Cabot Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.99B | 11.96 | 20.42% | 2.72% | -7.04% | -11.28% | |
65 Neutral | $3.99B | 29.50 | 11.63% | 1.70% | 4.25% | 56.51% | |
62 Neutral | $7.71B | 76.21 | 1.59% | ― | -6.73% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $3.39B | 34.90 | 3.48% | 3.48% | 1.03% | -24.57% | |
55 Neutral | $3.78B | -7.30 | -17.79% | ― | 19.12% | ― | |
53 Neutral | $3.42B | 42.73 | 8.09% | 1.54% | -1.30% | -36.69% |
* Basic Materials Sector Average
CBT
Cabot
74.68
-0.79
-1.05%
FUL
H.B. Fuller Company
63.68
12.63
24.75%
AVNT
Avient
37.45
7.88
26.65%
SSL
Sasol
12.08
8.90
279.87%
SXT
Sensient Technologies
92.69
21.19
29.63%
PRM
Perimeter Solutions
25.04
15.34
158.14%
Cabot Corporate Events
Executive/Board ChangesShareholder Meetings
Cabot Shareholders Back Board Nominees and Governance Measures
Positive
Mar 17, 2026
On March 12, 2026, Cabot held its annual meeting of stockholders, at which shareholders elected all of the board’s nominees—Sean D. Keohane, Raffiq Nathoo, and Thierry Vanlancker—to the director class whose terms will expire in 2...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Cabot Rebalances Classified Board Ahead of 2026 Meeting
Positive
Jan 14, 2026
Cabot Corporation, a publicly traded company, announced changes to its board structure affecting its 2026 Annual Meeting of Stockholders. The terms of directors Juan Enriquez and William C. Kirby will expire at the 2026 meeting, and the board has ...
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.