Cabot (CBT) AI Stock Analysis

• Market Cap: $4.22B
• Dividend Yield: 2.1%
• Average Volume (3M): 402.95K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.95
• Revenue Growth: -3.61%
• EPS Growth: -9.70%
• Country: US
• Employees: 4,151
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals - Specialty
• EPS (TTM): 1.90
• Shares Outstanding: 53,203,625
• 10 Day Avg. Volume: 378,660
• 30 Day Avg. Volume: 402,953
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 6.35
• 1Y Price Target: $82.00
• Price Target Upside: -1.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $91.00 ▲(9.72% Upside)

Cabot's overall stock score is driven by its strong financial performance, particularly in profitability and cash flow generation. The valuation is attractive, with a low P/E ratio and a reasonable dividend yield. Technical analysis shows a mild upward trend, while the earnings call reflects balanced sentiment with strategic positives and external challenges.

Positive Factors

Revenue Stability

Replacement tires account for approximately 75% of rubber black sales, which should significantly reduce volatility in the event of a demand shock.

Sales Performance

Improving Asian sales are expected to offset regional headwinds caused by tire imports into the US.

Negative Factors

Consumer Confidence

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

Market Demand

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

Tire Production

CBT was likely hurt by lower U.S. tire production.

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 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 demonstrates strong profitability with consistent margins and effective cash management. Despite challenges in revenue growth, the company maintains healthy leverage ratios and operational efficiency.

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	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	812.00M	764.00M	673.00M	705.00M	593.00M	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	1.28B	1.44B	1.16B	1.11B
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: Positive
• Last Price: 82.94
• 50DMA: Positive
• 100DMA: Positive
• 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 82.94 is above the 20-day moving average (MA) of 77.35, above the 50-day MA of 76.67, and below the 200-day MA of 84.69, indicating a neutral trend. The MACD of 1.19 indicates Negative momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.56 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	$5.23B	36.92	11.99%	0.53%	5.74%	21.54%
NEU	76 Outperform	$7.32B	15.44	33.61%	1.33%	2.27%	17.81%
SXT	75 Outperform	$4.83B	35.86	12.18%	1.43%	4.95%	53.63%
ESI	72 Outperform	$6.03B	25.21	9.62%	1.28%	5.41%	23.44%
CBT	71 Outperform	$4.22B	10.38	29.03%	2.10%	-3.61%	-9.70%
FUL	70 Outperform	$3.24B	32.58	5.62%	1.54%	-0.09%	-37.60%
Sector *	44 Neutral	AU$1.54B	-7.28	-18.84%	4.39%	-0.73%	-40.90%

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.