Cabot (CBT) AI Stock Analysis

• Market Cap: $4.01B
• Dividend Yield: 2.41%
• Average Volume (3M): 432.48K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.86
• Revenue Growth: -0.05%
• EPS Growth: -2.76%
• Country: US
• Employees: 4,151
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 1.90
• Shares Outstanding: 53,723,083
• 10 Day Avg. Volume: 328,466
• 30 Day Avg. Volume: 432,477
• 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: 1.21
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $85.00
• Price Target Upside: 13.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $83.00 ▲(11.08%Upside)

Cabot's overall stock score is driven primarily by its strong financial performance and attractive valuation. However, mixed signals from recent earnings guidance and moderate technical indicators slightly temper the outlook. The company's resilience in maintaining profitability amidst challenges and its commitment to shareholder returns are notable strengths.

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 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
	EBIT
640.00M	614.00M	526.00M	574.00M	454.00M	150.00M
	EBITDA
808.00M	764.00M	673.00M	705.00M	593.00M	306.00M
	Net Income Common Stockholders
433.00M	380.00M	445.00M	209.00M	250.00M	-224.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
213.00M	223.00M	238.00M	206.00M	168.00M	151.00M
	Total Assets
3.78B	3.74B	3.60B	3.52B	3.31B	2.78B
	Total Debt
1.29B	1.14B	1.28B	1.44B	1.16B	1.11B
	Net Debt
1.08B	917.00M	1.04B	1.24B	994.00M	964.00M
	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: Negative
• Last Price: 74.72
• 50DMA: Negative
• 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 Negative. The current price of 74.72 is below the 20-day moving average (MA) of 75.17, below the 50-day MA of 76.20, and below the 200-day MA of 91.89, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 56.17 is Neutral, 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
NEU	78 Outperform	$6.12B	12.91	35.85%	1.70%	3.65%	20.92%
BCPC	75 Outperform	$5.27B	38.68	11.94%	0.54%	3.76%	18.06%
ESI	75 Outperform	$5.10B	17.82	11.75%	1.52%	6.08%	117.61%
SXT	74 Outperform	$4.02B	31.37	11.87%	1.73%	6.30%	41.01%
CBT	71 Outperform	$4.01B	9.67	30.57%	2.41%	-0.05%	-2.76%
FUL	66 Neutral	$2.93B	27.28	6.35%	1.74%	0.99%	-27.62%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

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.