Cabot (CBT) AI Stock Analysis

• Market Cap: $4.05B
• Dividend Yield: 2.29%
• Average Volume (3M): 355.79K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.89
• Revenue Growth: -0.05%
• EPS Growth: -2.76%
• Country: US
• Employees: 4,151
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 1.90
• Shares Outstanding: 53,723,083
• 10 Day Avg. Volume: 337,755
• 30 Day Avg. Volume: 355,787
• PEG Ratio: 3.82
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.29
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 5.31
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: $81.67
• Price Target Upside: 7.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $84.00 ▲(10.34%Upside)

Cabot's stock score is bolstered by strong financial performance and attractive valuation, though tempered by mixed technical signals and cautious earnings guidance. The company's resilience in profitability and shareholder returns is notable, but global trade uncertainties pose risks.

Positive Factors

Revenue Stability

Replacement tires account for approximately 75% of rubber black sales, which should significantly reduce volatility in the event of a demand shock.

Sales Performance

Improving Asian sales are expected to offset regional headwinds caused by tire imports into the US.

Negative Factors

Consumer Confidence

With consumer confidence now at a 12-year low, a consumer-led rebound appears unlikely.

Market Demand

Construction and industrial weakness will likely continue to weigh on demand for specialty blacks and fumed silicas.

Tire Production

CBT was likely hurt by lower U.S. tire production.

Cabot Business Overview & Revenue Model

Company Description

Cabot Corporation (CBT) is a leading global specialty chemicals and performance materials company. It operates in key sectors including rubber and plastics, inks and coatings, electronics, and energy materials. Cabot's core products include carbon black, fumed silica, masterbatches, and aerogel, which are essential components used in a variety of industrial applications to enhance performance and quality.

How the Company Makes Money

Cabot Corporation makes money through the sale of its specialty chemicals and performance materials, which are integrated into numerous industrial applications. Its primary revenue streams include carbon black, used for tire reinforcement and pigmentation in plastics and inks; fumed metal oxides, which enhance the performance of adhesives, coatings, and sealants; and specialty compounds like masterbatches that provide color and performance attributes to plastics. Additionally, Cabot benefits from strategic partnerships and long-term supply agreements with major manufacturers in the automotive, electronics, and energy sectors, which contribute significantly to its earnings. The company leverages its global manufacturing and distribution network to serve customers efficiently across diverse regions.

Cabot Financial Statement Overview

Summary

Cabot demonstrates strong profitability and effective cash management with a consistent gross profit margin and improved net profit margin. However, revenue growth has been variable, reflecting challenges in maintaining consistent top-line growth.

Income Statement

Cabot demonstrates strong profitability with a consistent gross profit margin of around 24-25% over recent periods. The net profit margin has improved significantly to 11% in the TTM, indicating effective cost management and operational efficiency. Revenue growth, however, has been variable, with a decline in the past year, but recent TTM results show stabilization. The EBIT and EBITDA margins further reflect robust operational performance.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.90 in the TTM, suggesting balanced leverage, though slightly higher compared to peers. The return on equity is strong at 30.35%, illustrating effective utilization of shareholder funds. The equity ratio at 37.71% shows a stable equity base, supporting financial stability.

Cash Flow

Cabot's cash flow is solid with a strong operating cash flow to net income ratio of 1.40, reflecting good cash generation relative to earnings. Free cash flow growth has been inconsistent, but recent figures show positive movement, and the free cash flow to net income ratio of 0.66 indicates a healthy cash flow position.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.99B	3.93B	4.32B	3.41B	2.61B
Gross Profit	960.00M	839.00M	885.00M	799.00M	500.00M
EBITDA	764.00M	673.00M	705.00M	593.00M	306.00M
Net Income	380.00M	445.00M	209.00M	250.00M	-224.00M
Balance Sheet
Total Assets	3.74B	3.60B	3.52B	3.31B	2.78B
Cash, Cash Equivalents and Short-Term Investments	223.00M	238.00M	206.00M	168.00M	151.00M
Total Debt	1.14B	1.28B	1.44B	1.16B	1.11B
Total Liabilities	2.15B	2.20B	2.49B	2.22B	1.97B
Stockholders Equity	1.43B	1.26B	898.00M	947.00M	691.00M
Cash Flow
Free Cash Flow	451.00M	351.00M	-111.00M	62.00M	177.00M
Operating Cash Flow	692.00M	595.00M	100.00M	257.00M	377.00M
Investing Cash Flow	-235.00M	-214.00M	-118.00M	-186.00M	-288.00M
Financing Cash Flow	-415.00M	-403.00M	145.00M	-60.00M	-132.00M

Cabot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBT, the sentiment is Negative. The current price of 76.13 is below the 20-day moving average (MA) of 77.03, above the 50-day MA of 75.77, and below the 200-day MA of 88.09, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 49.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CBT.

Cabot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXT	78 Outperform	$4.67B	35.84	12.18%	1.49%	4.95%	53.63%
FUL	75 Outperform	$3.19B	32.82	5.62%	1.53%	-0.09%	-37.60%
NEU	75 Outperform	$6.78B	14.31	35.85%	1.49%	3.65%	20.92%
BCPC	73 Outperform	$4.87B	36.07	11.94%	0.58%	3.76%	18.06%
ESI	73 Outperform	$5.74B	20.53	11.75%	1.34%	6.08%	117.61%
CBT	72 Outperform	$4.05B	10.11	30.57%	2.29%	-0.05%	-2.76%
Sector *	44 Neutral	AU$1.51B	-6.22	-41.37%	3.85%	-3.52%	-43.04%

Cabot Corporate Events

Cabot Announces Leadership Transition with New EVP Appointment

On May 30, 2025, Cabot Corporation announced that Hobart C. Kalkstein, Executive Vice President and President of the Reinforcement Materials Segment, will step down from his roles effective June 15, 2025, and retire on January 5, 2026. Matthew Wood, currently a Senior Vice President, will succeed Kalkstein. Kalkstein will remain in an advisory role to ensure a smooth transition. The company has entered into a transition agreement with Kalkstein, extending the exercise period of his stock options and providing compensation during a non-competition period. Kalkstein’s leadership has been pivotal in strengthening Cabot’s position in the tire industry and developing its EVOLVE® Sustainable Solutions technology platform. Wood brings extensive experience and is expected to drive growth in his new role.

The most recent analyst rating on (CBT) stock is a Sell with a $105.00 price target. To see the full list of analyst forecasts on Cabot stock, see the CBT Stock Forecast page.