Cabot (CBT) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: 2.86%
• Average Volume (3M): 482.73K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.97
• Revenue Growth: -7.04%
• EPS Growth: -11.00%
• Country: US
• Employees: 4,151
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.70
• Shares Outstanding: 53,203,625
• 10 Day Avg. Volume: 646,008
• 30 Day Avg. Volume: 482,728
• PEG Ratio: -1.13
• Price to Book (P/B): 4.32
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 13.66
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 5.30
• Enterprise Value/Ebitda: 6.27
• 1Y Price Target: $76.50
• Price Target Upside: 24.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $71.00 ▲(15.26% Upside)

Cabot's overall stock score is driven by strong financial performance and attractive valuation, offset by bearish technical indicators and cautious earnings guidance. The company's profitability and strategic initiatives are positive, but macroeconomic challenges and declining sales volumes pose risks.

Positive Factors

Strong Profitability

Cabot's strong profitability and healthy margins indicate effective cost management and pricing power, supporting long-term financial stability.

Cash Flow Generation

Improved cash flow generation enhances Cabot's ability to invest in growth opportunities, reduce debt, and return capital to shareholders.

Strategic Acquisition

The acquisition is expected to be accretive in the first year, expanding Cabot's production capacity and market presence in reinforcing materials.

Negative Factors

Declining Revenue Growth

Declining revenue growth could signal weakening demand or competitive pressures, potentially impacting future profitability and market share.

Decreased Volumes

Decreased volumes indicate reduced customer demand, which may lead to lower revenue and profitability if not addressed through strategic initiatives.

Macroeconomic Uncertainty

Macroeconomic uncertainty can affect demand projections and contract negotiations, posing risks to Cabot's revenue and strategic planning.

Cabot Business Overview & Revenue Model

Company Description

Cabot Corporation (CBT) is a global specialty chemicals and performance materials company that operates primarily in two segments: Reinforcement Materials and Performance Chemicals. The company is known for producing high-performance carbon black, which is used in tires and other rubber products, as well as various specialty chemicals that serve multiple industries including automotive, electronics, pharmaceuticals, and coatings. Cabot's commitment to innovation and sustainability drives its product development, allowing it to offer advanced materials that enhance performance and efficiency for its customers.

How the Company Makes Money

Cabot generates revenue primarily through the sale of its specialty chemicals and performance materials. The main revenue stream comes from its Reinforcement Materials segment, which sells carbon black products to tire manufacturers and other rubber product producers. Additionally, the Performance Chemicals segment contributes significantly to revenue through the sale of specialty chemicals used in a variety of applications, including coatings and plastics. Cabot also benefits from strategic partnerships with key players in various industries, enhancing its market reach and enabling it to provide tailored solutions that meet specific customer needs. Furthermore, the company invests in research and development to innovate new products and improve existing ones, which helps maintain its competitive edge and drive sales growth.

Cabot Financial Statement Overview

Summary

Cabot exhibits strong profitability with healthy margins and a robust return on equity. The balance sheet is stable with low leverage, and cash flow generation is improving. However, the decline in revenue growth is a concern that needs to be addressed to sustain long-term performance.

Income Statement

Cabot's income statement shows a strong gross profit margin of 25.16% and a net profit margin of 11.14% for the TTM, indicating solid profitability. However, the revenue growth rate is negative at -2.38%, suggesting a decline in sales. The EBIT and EBITDA margins are healthy at 17.30% and 21.28%, respectively, reflecting efficient operations despite the revenue drop.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio of 0.71, indicating a conservative leverage position. Return on equity is robust at 29.52%, showcasing effective use of equity capital. The equity ratio stands at 40.16%, suggesting a stable capital structure with a good proportion of assets financed by equity.

Cash Flow

Cabot's cash flow statement highlights a significant free cash flow growth of 20.83%, demonstrating improved cash generation. The operating cash flow to net income ratio is 0.88, indicating strong cash conversion. However, the free cash flow to net income ratio is moderate at 0.54, suggesting room for improvement in cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.81B	3.99B	3.93B	4.32B	3.41B	2.61B
Gross Profit	960.00M	960.00M	839.00M	885.00M	799.00M	500.00M
EBITDA	811.00M	761.00M	685.00M	537.00M	615.00M	306.00M
Net Income	425.00M	380.00M	445.00M	209.00M	250.00M	-224.00M
Balance Sheet
Total Assets	3.84B	3.74B	3.60B	3.52B	3.31B	2.78B
Cash, Cash Equivalents and Short-Term Investments	239.00M	223.00M	238.00M	206.00M	168.00M	151.00M
Total Debt	1.22B	1.14B	1.36B	1.53B	1.25B	1.20B
Total Liabilities	2.15B	2.15B	2.20B	2.49B	2.22B	1.97B
Stockholders Equity	1.54B	1.43B	1.26B	898.00M	947.00M	691.00M
Cash Flow
Free Cash Flow	348.00M	451.00M	351.00M	-111.00M	62.00M	177.00M
Operating Cash Flow	650.00M	692.00M	595.00M	100.00M	257.00M	377.00M
Investing Cash Flow	-328.00M	-235.00M	-214.00M	-118.00M	-186.00M	-288.00M
Financing Cash Flow	-279.00M	-415.00M	-403.00M	145.00M	-60.00M	-132.00M

Cabot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 61.6 is below the 20-day moving average (MA) of 65.88, below the 50-day MA of 71.50, and below the 200-day MA of 76.77, indicating a bearish trend. The MACD of -3.10 indicates Positive momentum. The RSI at 29.99 is Positive, neither overbought nor oversold. The STOCH value of 33.96 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
PRM	70 Neutral	$3.57B	57.32	7.39%	―	19.12%	―
SSL	69 Neutral	$4.46B	11.84	4.56%	―	-6.73%	―
CBT	66 Neutral	$3.27B	10.21	22.05%	2.86%	-7.04%	-11.00%
SXT	66 Neutral	$4.03B	29.00	12.31%	1.72%	4.25%	56.51%
AVNT	63 Neutral	$2.70B	23.89	4.79%	3.58%	1.03%	-24.57%
FUL	62 Neutral	$3.10B	27.56	6.05%	1.62%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Cabot Corporate Events

Cabot Corp Reports Resilient Q3 2025 Earnings

Cabot Corporation, a global specialty chemicals and performance materials company, is known for its innovative solutions in reinforcing carbons, specialty carbons, and other advanced materials. Headquartered in Boston, Massachusetts, Cabot serves a diverse range of industries worldwide.

Cabot Corp Navigates Mixed Earnings Amid Challenges

Cabot Corp’s recent earnings call painted a picture of mixed sentiment, balancing optimism from strategic initiatives with challenges from macroeconomic pressures. The company reported strong cash flow and strategic acquisitions, underscoring its commitment to growth and sustainability. However, declines in key segments due to external economic factors were also highlighted, presenting a complex outlook for the future.