Cabot (CBT) AI Stock Analysis

• Market Cap: $4.20B
• Dividend Yield: 2.27%
• Average Volume (3M): 471.13K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.86
• Revenue Growth: -0.05%
• EPS Growth: -2.76%
• Country: US
• Employees: 4,151
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Chemicals - Specialty
• EPS (TTM): 1.90
• Shares Outstanding: 53,723,083
• 10 Day Avg. Volume: 362,200
• 30 Day Avg. Volume: 471,125
• PEG Ratio: 0.80
• Price to Book (P/B): 2.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.97
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: 1.64
• 1Y Price Target: $85.00
• Price Target Upside: 8.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $84.00 ▲(7.47%Upside)

Cabot's overall score reflects solid financial performance and attractive valuation. Despite challenges in global trade and revised guidance, the company maintains strong profitability and shareholder returns, supporting its resilience in a volatile market.

Positive Factors

Earnings Growth

Performance Chemicals adj. EBITDA rose 25% year-over-year on an 8% volume increase to $65M, surpassing expectations.

Sector Expansion

Expansions in EV battery materials are underway in the U.S., Europe, and China, signaling growth potential.

Stock Buyback

Buyback authorization recently increased to 10 million shares, representing over 18% of outstanding shares.

Negative Factors

Consumer Confidence

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

Industrial Demand

Construction and industrial weakness are likely to continue weighing on demand for specialty blacks and fumed silicas.

Price Target

Price Target reduced to $105 from $110, indicating tempered expectations.

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 tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites. It also provides specialty carbons used in inks, coatings, plastics, adhesives, toners, batteries, and displays applications; masterbatch and conductive compound products for use in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; inkjet colorants used in the inkjet printing applications; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; fumed alumina used in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries; and aerogel, a hydrophobic, silica-based particle for use in various thermal insulation and specialty chemical applications. In addition, the company offers activated carbon products used for the purification of water, air, food and beverages, pharmaceuticals, and other liquids and gases; and activated carbon solutions for activated carbon injection in coal-fired utilities, mobile water filter units, and carbon reactivation services. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

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 and cash flow management with stable margins and efficient equity utilization. Despite a slight revenue contraction, its solid cash flow and profitability metrics provide a strong foundation. Effective debt management further supports financial stability, though attention to equity backing could enhance resilience.

Income Statement

Cabot's TTM (Trailing-Twelve-Months) income statement shows a solid gross profit margin of 24.5% and net profit margin of 10.6%. The company has seen a revenue decline of 0.1% from the previous fiscal year, but its EBIT and EBITDA margins remain strong at 15.9% and 18.9% respectively. Stability in operating performance is evident, although the slight revenue decline suggests potential market challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.80, indicating manageable leverage. The return on equity (ROE) is robust at 31.0%, suggesting efficient use of equity. However, the equity ratio is 36.6%, highlighting somewhat limited asset backing by equity, which might pose risks if liabilities increase.

Cash Flow

Cabot demonstrates strong cash flow management with a free cash flow growth rate of 27.4% in the TTM period. The operating cash flow to net income ratio is 1.68, indicating effective conversion of profits into cash. Additionally, the free cash flow to net income ratio of 1.06 reflects a healthy cash generation capability relative to earnings.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.99B	3.99B	3.93B	4.32B	3.41B	2.61B
	Gross Profit
978.00M	960.00M	839.00M	885.00M	799.00M	500.00M
	EBIT
634.00M	614.00M	526.00M	574.00M	454.00M	150.00M
	EBITDA
801.00M	764.00M	673.00M	705.00M	593.00M	306.00M
	Net Income Common Stockholders
423.00M	380.00M	445.00M	209.00M	250.00M	-224.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.00M	223.00M	238.00M	206.00M	168.00M	151.00M
	Total Assets
3.64B	3.74B	3.60B	3.52B	3.31B	2.78B
	Total Debt
1.20B	1.14B	1.28B	1.44B	1.16B	1.11B
	Net Debt
1.01B	917.00M	1.04B	1.24B	994.00M	964.00M
	Total Liabilities
2.13B	2.15B	2.20B	2.49B	2.22B	1.97B
	Stockholders Equity
1.37B	1.43B	1.26B	898.00M	947.00M	691.00M
Cash Flow		Free Cash Flow
447.00M	451.00M	351.00M	-111.00M	62.00M	177.00M
	Operating Cash Flow
711.00M	692.00M	595.00M	100.00M	257.00M	377.00M
	Investing Cash Flow
-285.00M	-235.00M	-214.00M	-118.00M	-186.00M	-288.00M
	Financing Cash Flow
-410.00M	-415.00M	-403.00M	145.00M	-60.00M	-132.00M

Cabot Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.16
• 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 Positive. The current price of 78.16 is above the 20-day moving average (MA) of 75.02, above the 50-day MA of 76.63, and below the 200-day MA of 92.26, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBT.

Cabot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	80 Outperform	$5.47B	40.15	11.94%	0.52%	3.76%	18.06%
NEU	80 Outperform	$6.08B	12.83	35.85%	1.59%	3.65%	20.92%
SXT	74 Outperform	$4.09B	31.93	11.87%	1.70%	6.30%	41.01%
CBT	73 Outperform	$4.20B	10.11	30.57%	2.27%	-0.05%	-2.76%
ESI	71 Outperform	$5.35B	18.70	11.75%	1.46%	6.08%	117.61%
FUL	68 Neutral	$3.18B	29.53	6.35%	1.58%	0.99%	-27.62%
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%

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.