Cabot Corporation (CBT)
NYSE:CBT
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Cabot
(NYSE:CBT)
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Rating:70Outperform
Price Target:
$91.00
▲(22.26% Upside)
Action:Upgraded
Date:05/14/26
CBT scores well on financial resilience and cash generation, supported by a de-risked balance sheet, while technicals are positive with the stock trading above key moving averages. The score is held back by weakening revenue/earnings versus prior highs and earnings-call risks tied to Reinforcement Materials pressure and macro/input-cost uncertainty, despite reaffirmed guidance and active cost/pricing actions.
Positive Factors
Cash Generation
Consistent, sizable operating and free cash flow provides durable internal funding for capex, debt reduction, and shareholder returns. This cash-generation capacity increases resilience through cycles, enabling reinvestment in higher-margin growth areas without overreliance on external financing.
Negative Factors
Revenue & Earnings Weakness
A downtrend in top‑line and falling net income reduces operating leverage and constrains long‑term reinvestment and return capacity. Persistent softening risks eroding margins, stress testing the company’s ability to consistently fund buybacks, dividends and restructuring without external support.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistent, sizable operating and free cash flow provides durable internal funding for capex, debt reduction, and shareholder returns. This cash-generation capacity increases resilience through cycles, enabling reinvestment in higher-margin growth areas without overreliance on external financing.
Read all positive factors
Cabot (CBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.04B
Dividend Yield2.72%
Average Volume (3M)471.29K
Price to Earnings (P/E)14.4
Beta (1Y)0.82
Revenue Growth-8.52%
EPS Growth-31.91%
CountryUS
Employees4,151
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)5.38
Shares Outstanding51,621,418
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 Cap1.26
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit5.71
Enterprise Value/Ebitda6.78
Forecast
1Y Price Target
$79.00Price Target Upside6.14% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)6.3
Revenue Forecast (FY)$3.58B
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:May 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call describes a balanced picture: robust cash generation, strong growth and high margins in Battery Materials and better-than-expected Performance Chemicals results, coupled with active shareholder returns and disciplined capital allocation. Offsetting these positives are meaningful near-term headwinds in Reinforcement Materials (EBIT down 29% YoY), input-cost and geopolitical uncertainty, and announced capacity rationalizations with execution costs. Management is taking cost savings, pricing and network optimization actions and reaffirmed full-year guidance, but risks remain if demand softens.Positive Updates
Strong Cash Generation and Liquidity
Operating cash flow of $77 million and discretionary free cash flow of $63 million in Q2. Cash balance of $252 million and total liquidity of approximately $1.3 billion. Net debt-to-EBITDA of 1.5x provides financial flexibility.
Negative Updates
Adjusted EPS Decline
Adjusted earnings per share of $1.61 in Q2, down 15% year-over-year from $1.90, primarily driven by weaker results in Reinforcement Materials.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cash Generation and Liquidity
Operating cash flow of $77 million and discretionary free cash flow of $63 million in Q2. Cash balance of $252 million and total liquidity of approximately $1.3 billion. Net debt-to-EBITDA of 1.5x provides financial flexibility.
Read all positive updates
Company Guidance
Cabot reaffirmed fiscal 2026 adjusted EPS guidance of $6.00–$6.50 per share, noting that the range assumes pricing actions will offset higher input costs and that the key variable is customer demand (upper end if demand holds, midpoint assumes modest Q4 moderation, lower end if demand softens); they also expect Reinforcement Materials Q3 sequential EBIT improvement of $5–$7M and Performance Chemicals EBIT to be relatively flat sequentially. Management reiterated full‑year capital expenditures of $200–$230M and a $30M cost‑savings target for fiscal ’26, announced capacity rationalization of ~120,000 metric tons targeting ~ $22M annual run‑rate cost benefit by mid‑calendar 2027 with ~$24M cash cost to execute over 2–3 years, and said Battery Materials should generate roughly $40M of EBITDA in FY26 (trailing‑12‑month EBITDA margin ~24%). Financial flexibility metrics cited include Q2 cash from operations of $77M, discretionary free cash flow of $63M, cash balance $252M, total liquidity of ~ $1.3B, debt $1.3B with net debt/EBITDA of 1.5x; capital returned includes a 5% dividend increase to $1.89 annualized and $100M of share repurchases YTD (including $49M in Q2), $73M returned in the quarter, operating tax rate guidance 27–29%, and targeted pricing actions (up to ~20% in March in certain Specialty Carbons/Compounds) to protect margins.Cabot Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.58B | 3.71B | 3.99B | 3.93B | 4.32B | 3.41B |
| Gross Profit | 892.00M | 940.00M | 960.00M | 839.00M | 885.00M | 799.00M |
| EBITDA | 751.00M | 794.00M | 761.00M | 685.00M | 537.00M | 615.00M |
| Net Income | 285.00M | 331.00M | 380.00M | 445.00M | 209.00M | 250.00M |
Balance Sheet | ||||||
| Total Assets | 3.90B | 3.81B | 3.74B | 3.60B | 3.52B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 252.00M | 258.00M | 223.00M | 238.00M | 206.00M | 168.00M |
| Total Debt | 1.30B | 1.22B | 1.33B | 1.36B | 1.53B | 1.25B |
| Total Liabilities | 2.21B | 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 | 459.00M | 391.00M | 451.00M | 351.00M | -111.00M | 62.00M |
| Operating Cash Flow | 671.00M | 665.00M | 692.00M | 595.00M | 100.00M | 257.00M |
| Investing Cash Flow | -302.00M | -298.00M | -235.00M | -214.00M | -118.00M | -186.00M |
| Financing Cash Flow | -368.00M | -336.00M | -415.00M | -403.00M | 145.00M | -60.00M |
Cabot Technical Analysis
Positive
74.43
Price Trends
75.76
Positive
74.07
Positive
72.30
Positive
Market Momentum
1.16
Positive
48.26
Neutral
9.82
Positive
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 74.43 is below the 20-day moving average (MA) of 79.87, below the 50-day MA of 75.76, and above the 200-day MA of 72.30, indicating a neutral trend. The MACD of 1.16 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 9.82 is Positive, 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 | $4.04B | 14.40 | 18.29% | 2.72% | -8.52% | -31.91% | |
67 Neutral | $4.86B | 20.69 | 12.14% | 1.70% | 5.80% | 12.24% | |
62 Neutral | $8.49B | 76.21 | 1.59% | ― | -1.88% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $3.10B | 14.94 | 6.64% | 3.48% | 1.33% | 57.45% | |
59 Neutral | $5.46B | 12.88 | -16.43% | ― | 22.99% | -245.44% | |
56 Neutral | $3.22B | 42.73 | 8.09% | 1.54% | -2.57% | 43.21% |
* Basic Materials Sector Average
CBT
Cabot
78.34
6.15
8.51%
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Cabot Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Cabot Secures Expanded Long-Term Revolving Credit Facility
Positive
May 14, 2026
On May 12, 2026, Cabot Corporation entered into a new $1.3 billion unsecured revolving credit facility arranged by a syndicate of global banks, replacing and upsizing its prior $1 billion U.S. dollar and €300 million euro revolving facilitie...
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...
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.