Cabot (CBT) AI Stock Analysis

• Market Cap: $4.19B
• Dividend Yield: 2.4%
• Average Volume (3M): 383.44K
• 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: 61
• Industry: Chemicals - Specialty
• EPS (TTM): 1.90
• Shares Outstanding: 53,723,083
• 10 Day Avg. Volume: 456,052
• 30 Day Avg. Volume: 383,435
• PEG Ratio: -1.07
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.52
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $85.00
• Price Target Upside: 9.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $84.00 ▲(7.83%Upside)

Cabot's strong financial performance and attractive valuation are key strengths, despite mixed earnings call results and technical indicators suggesting cautious optimism. The company's ability to maintain profitability and shareholder returns amidst global uncertainties is commendable.

Positive Factors

Performance Chemicals Growth

Performance Chemicals adj. EBITDA rose 25% Y/Y on +8% volume to $65M vs. $59M MSUSAe.

Resilience in Demand

Replacement tire demand should provide resilience, and while tire imports into the US remain a regional headwind, improving Asian sales will likely provide an offset.

Stock Buyback

Buyback authorization recently increased to 10 million shares (18%+ of outstanding).

Negative Factors

Construction and Industrial Demand

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

Consumer Confidence

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

Tire Production Impact

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 shows strong profitability with effective cost management and operational efficiency. While revenue growth is variable, the company maintains healthy margins and leverage ratios, indicating resilience.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.91B	3.99B	3.93B	4.32B	3.41B	2.61B
Gross Profit	973.00M	960.00M	839.00M	885.00M	799.00M	500.00M
EBITDA	808.00M	764.00M	673.00M	705.00M	593.00M	306.00M
Net Income	433.00M	380.00M	445.00M	209.00M	250.00M	-224.00M
Balance Sheet
Total Assets	3.78B	3.74B	3.60B	3.52B	3.31B	2.78B
Cash, Cash Equivalents and Short-Term Investments	213.00M	223.00M	238.00M	206.00M	168.00M	151.00M
Total Debt	1.29B	1.14B	1.28B	1.44B	1.16B	1.11B
Total Liabilities	2.19B	2.15B	2.20B	2.49B	2.22B	1.97B
Stockholders Equity	1.43B	1.43B	1.26B	898.00M	947.00M	691.00M
Cash Flow
Free Cash Flow	288.00M	451.00M	351.00M	-111.00M	62.00M	177.00M
Operating Cash Flow	608.00M	692.00M	595.00M	100.00M	257.00M	377.00M
Investing Cash Flow	-314.00M	-235.00M	-214.00M	-118.00M	-186.00M	-288.00M
Financing Cash Flow	-227.00M	-415.00M	-403.00M	145.00M	-60.00M	-132.00M

Cabot Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 77.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBT, the sentiment is Neutral. The current price of 77.9 is above the 20-day moving average (MA) of 75.42, above the 50-day MA of 75.57, and below the 200-day MA of 90.50, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 76.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CBT.

Cabot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEU	78 Outperform	$6.66B	14.04	35.85%	1.56%	3.65%	20.92%
BCPC	75 Outperform	$5.28B	38.77	11.94%	0.55%	3.76%	18.06%
CBT	73 Outperform	$4.19B	10.08	30.57%	2.40%	-0.05%	-2.76%
SXT	73 Outperform	$4.42B	34.43	11.87%	1.66%	6.30%	41.01%
ESI	73 Outperform	$5.61B	19.62	11.75%	1.41%	6.08%	117.61%
FUL	70 Outperform	$3.34B	33.65	5.62%	1.52%	-0.09%	-37.60%
Sector *	44 Neutral	C$967.20M	-6.69	-13.35%	2.72%	17.55%	-32.18%

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.