Cabot (CBT) AI Stock Analysis

• Market Cap: $3.37B
• Dividend Yield: 2.72%
• Average Volume (3M): 478.05K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.94
• Revenue Growth: -7.04%
• EPS Growth: -11.28%
• Country: US
• Employees: 4,151
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.70
• Shares Outstanding: 52,898,777
• 10 Day Avg. Volume: 452,280
• 30 Day Avg. Volume: 478,053
• PEG Ratio: -1.03
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 10.44
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 6.45
• 1Y Price Target: $68.50
• Price Target Upside: 11.00% 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 ▲(15.05% 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 Business Overview & Revenue Model

Company Description

Cabot Corporation (CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company operates in various sectors, primarily focusing on the production of carbon blacks, specialty compounds, and performance chemicals. Cabot's core products serve a wide range of industries, including automotive, electronics, energy, and environmental applications, helping to enhance the performance and sustainability of its customers' products.

How the Company Makes Money

Cabot 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 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 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	3.71B	―	3.71B	3.99B	3.93B	4.32B
Gross Profit	943.00M	―	940.00M	960.00M	839.00M	885.00M
EBITDA	804.00M	―	794.00M	761.00M	685.00M	537.00M
Net Income	331.00M	―	331.00M	380.00M	445.00M	209.00M
Balance Sheet
Total Assets	3.84B	―	3.81B	3.74B	3.60B	3.52B
Cash, Cash Equivalents and Short-Term Investments	239.00M	―	258.00M	223.00M	238.00M	206.00M
Total Debt	1.22B	―	1.13B	1.14B	1.36B	1.53B
Total Liabilities	2.15B	―	2.11B	2.15B	2.20B	2.49B
Stockholders Equity	1.54B	―	1.55B	1.43B	1.26B	898.00M
Cash Flow
Free Cash Flow	391.00M	―	391.00M	451.00M	351.00M	-111.00M
Operating Cash Flow	665.00M	―	665.00M	692.00M	595.00M	100.00M
Investing Cash Flow	-298.00M	―	-298.00M	-235.00M	-214.00M	-118.00M
Financing Cash Flow	-336.00M	―	-336.00M	-415.00M	-403.00M	145.00M

Cabot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 61.71 is below the 20-day moving average (MA) of 61.83, below the 50-day MA of 66.66, and below the 200-day MA of 74.65, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 85.49 is Negative, 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	$3.83B	10.40	4.56%	―	-6.73%	―
CBT	66 Neutral	$3.37B	10.61	21.98%	2.72%	-7.04%	-11.28%
SXT	65 Neutral	$3.92B	28.26	12.31%	1.78%	4.25%	56.51%
AVNT	63 Neutral	$2.81B	24.89	4.79%	3.52%	1.03%	-24.57%
FUL	62 Neutral	$3.15B	27.94	6.05%	1.60%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Cabot Corporate Events

Cabot Corp’s AI Challenges: Navigating Risks and Competitive Pressures

Cabot Corp faces significant risks associated with its use of artificial intelligence tools, which may not necessarily enhance its business operations or provide competitive advantages. Competitors could potentially outpace Cabot Corp by leveraging AI more effectively, leading to superior products or operational improvements. The company also risks exposure to flawed algorithms, data privacy issues, and potential intellectual property challenges, which could result in legal liabilities and increased compliance costs due to evolving regulations in various jurisdictions. These factors collectively pose a substantial threat to Cabot Corp’s strategic objectives and operational stability.

Cabot Corporation Reports Fiscal Year 2025 Earnings

Cabot Corporation is a global specialty chemicals and performance materials company based in Boston, Massachusetts, known for its production of reinforcing carbons, specialty carbons, and other advanced materials.

Cabot Corp’s Earnings Call: Record Gains Amid Challenges

Cabot Corp’s recent earnings call painted a picture of both achievement and caution. While the company celebrated record earnings per share and strategic advancements, it also acknowledged challenges such as decreased volumes, heightened competition in the tire sector, and macroeconomic uncertainties that could impact future performance.