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Cabot
(NYSE:CBT)
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Rating:69Neutral
Price Target:
$96.00
▲(6.49% Upside)
Action:Downgraded
Date:08/17/26
CBT scores as moderately attractive, led by solid underlying profitability and a materially improved balance sheet, reinforced by earnings-call commentary showing confidence in FY26 guidance and strong Performance Chemicals/battery momentum. The score is held back by weaker recent earnings and free-cash-flow momentum, mixed near-term technical signals (negative MACD with neutral RSI), and a valuation that is acceptable but not clearly discounted (P/E ~24).
Positive Factors
Durable Profitability
Healthy operating and EBITDA margins indicate Cabot retains pricing, scale, and product-value advantages across specialty chemicals, providing a durable earnings base even when end-market demand and input costs fluctuate.
Negative Factors
Weak Revenue and Earnings Trajectory
Recent contraction in revenue and earnings indicates that durable profitability has not yet translated into consistent growth. Continued weakness could limit operating leverage, investment capacity, and the pace of shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Profitability
Healthy operating and EBITDA margins indicate Cabot retains pricing, scale, and product-value advantages across specialty chemicals, providing a durable earnings base even when end-market demand and input costs fluctuate.
Read all positive factors
Cabot Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down Cabot’s sales across regions so you can judge where demand is strongest and where the company is most exposed to local economic cycles, currency moves, or regulatory shifts. Useful for spotting regional growth opportunities and concentration risks that could affect future revenue and earnings stability.
Breaks down Cabot’s sales across regions so you can judge where demand is strongest and where the company is most exposed to local economic cycles, currency moves, or regulatory shifts. Useful for spotting regional growth opportunities and concentration risks that could affect future revenue and earnings stability.
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The Fly
The FlyCabot (CBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.35B
Dividend Yield2.14%
Average Volume (3M)562.66K
Price to Earnings (P/E)23.6
Beta (1Y)0.80
Revenue Growth-4.74%
EPS Growth-53.83%
CountryUS
Employees4,064
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.61
Shares Outstanding51,631,010
10 Day Avg. Volume351,353
30 Day Avg. Volume562,659
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)2.63
Price to Sales (P/S)1.10
P/FCF Ratio10.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$86.67Price Target Upside-3.86% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)6.35
Revenue Forecast (FY)$3.64B
Cabot Business Overview & Revenue Model
Company Description
Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through two segments, Reinforcement Materials and Performance Chemicals. The company offers reinforcing carbons that are used in tires as a rubber r...
How the Company Makes Money
Cabot makes money primarily by manufacturing and selling performance materials—most notably carbon black—and capturing margin between its selling prices and its feedstock, energy, logistics, and operating costs. Its major revenue stream is the Rei...
Cabot Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call presented a mix of meaningful positives — solid adjusted EPS growth, a strong Performance Chemicals quarter (+19% EBIT YoY), robust battery materials momentum (24% trailing EBITDA margin and $40M FY26 EBITDA target), healthy liquidity (~$1.3B) and continued shareholder returns — alongside material challenges, chiefly a significant ~24% YoY earnings decline in Reinforcement Materials driven by customer tire agreements, working capital pressure from raw material/oil volatility, and near-term margin normalization risks. Management reaffirmed guidance (narrowed range), highlighted disciplined capital allocation and ongoing investments in battery capacity, and expressed confidence in leadership continuity. Overall the positives modestly outweigh the negatives, with confidence in strategic growth areas balancing near-term headwinds.Positive Updates
Adjusted EPS Growth
Adjusted earnings per share for Q3 fiscal 2026 were $1.67, an increase of 4% sequentially, reflecting solid execution across the portfolio.
Negative Updates
Reinforcement Materials Earnings Decline
Reinforcement Materials EBIT was $97 million in Q3 versus $128 million in the prior-year quarter, a decline of ~24% year-over-year, driven primarily by lower gross profit per ton from outcomes of calendar year 2026 tire customer agreements.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted earnings per share for Q3 fiscal 2026 were $1.67, an increase of 4% sequentially, reflecting solid execution across the portfolio.
Read all positive updates
Company Guidance
Management tightened fiscal 2026 adjusted EPS guidance to $6.15–$6.45 (from $6.00–$6.50) while reaffirming Battery Materials EBITDA of ≈$40M for FY26 and reporting trailing-12-month Battery EBITDA margins of ≈24% at Q3-end; they narrowed FY26 CapEx to $200–$215M (Q3 CapEx $38M) and expect to invest ≈$125M in battery conductive‑additive capacity (U.S. brownfield + China) with new capacity targeted for 2028. Q3 operating cash flow was $75M after funding ≈$44M of higher net working capital; the company returned $24M in dividends in the quarter, has repurchased $101M YTD and expects to resume buybacks in Q4, ended Q3 with $250M cash and ≈$1.3B liquidity, has ≈$1.3B debt and a net debt/EBITDA of 1.4x, and plans to refinance a September bond in Q4. They updated the FY26 operating tax rate to 28%–30% (YTD 29%), and on a segment basis reported Reinforcement Materials Q3 EBIT $97M (EBITDA $117M, EBITDA margin 20%; volumes +5% YoY — Asia +10%, Americas +4%) with a modest sequential Q4 EBIT decline expected, and Performance Chemicals Q3 EBIT $68M (+19% YoY) with anticipated seasonal Q4 volume softness and gross‑profit‑per‑ton normalization as raw costs catch up.Cabot Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.63B | 3.71B | 3.99B | 3.93B | 4.32B | 3.41B |
| Gross Profit | 832.00M | 940.00M | 960.00M | 839.00M | 885.00M | 799.00M |
| EBITDA | 690.00M | 794.00M | 761.00M | 685.00M | 537.00M | 615.00M |
| Net Income | 190.00M | 331.00M | 380.00M | 445.00M | 209.00M | 250.00M |
Balance Sheet | ||||||
| Total Assets | 3.98B | 3.81B | 3.74B | 3.60B | 3.52B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 250.00M | 258.00M | 223.00M | 238.00M | 206.00M | 168.00M |
| Total Debt | 1.27B | 1.22B | 1.33B | 1.36B | 1.53B | 1.25B |
| Total Liabilities | 2.24B | 2.11B | 2.15B | 2.20B | 2.49B | 2.22B |
| Stockholders Equity | 1.60B | 1.55B | 1.43B | 1.26B | 898.00M | 947.00M |
Cash Flow | ||||||
| Free Cash Flow | 281.00M | 391.00M | 451.00M | 351.00M | -111.00M | 62.00M |
| Operating Cash Flow | 497.00M | 665.00M | 692.00M | 595.00M | 100.00M | 257.00M |
| Investing Cash Flow | -275.00M | -298.00M | -235.00M | -214.00M | -118.00M | -186.00M |
| Financing Cash Flow | -234.00M | -336.00M | -415.00M | -403.00M | 145.00M | -60.00M |
Cabot Technical Analysis
Negative
90.15
Price Trends
88.01
Negative
83.30
Positive
75.71
Positive
Market Momentum
-0.60
Positive
42.56
Neutral
56.46
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 90.15 is above the 20-day moving average (MA) of 87.64, above the 50-day MA of 88.01, and above the 200-day MA of 75.71, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 56.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.35B | 23.60 | 12.07% | 2.02% | -4.74% | -53.83% | |
69 Neutral | $3.99B | 23.80 | 7.16% | 2.91% | 2.36% | 42.56% | |
69 Neutral | $5.54B | 35.72 | 13.02% | 1.31% | 8.12% | 16.87% | |
62 Neutral | $7.69B | 53.42 | 1.59% | ― | -1.88% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $3.22B | 17.84 | 9.16% | 1.71% | -0.57% | 81.10% | |
51 Neutral | $5.21B | -13.84 | -30.38% | ― | 24.25% | -515.23% |
* Basic Materials Sector Average
CBT
Cabot
85.18
7.83
10.12%
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H.B. Fuller Company
60.85
2.46
4.22%
AVNT
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SSL
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12.10
6.14
103.02%
SXT
Sensient Technologies
133.22
21.34
19.08%
PRM
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30.45
12.03
65.31%
Cabot Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Cabot Corporation Announces $350 Million Senior Notes Offering
Positive
Aug 14, 2026
On August 12, 2026, Cabot Corporation entered into an underwriting agreement with a syndicate led by Citigroup, J.P. Morgan, PNC Capital Markets and U.S. Bancorp Investments for the issuance and sale of $350 million of 4.950% notes due 2029. The n...
Business Operations and StrategyExecutive/Board Changes
Cabot announces CEO retirement and leadership succession
Neutral
Jul 30, 2026
Cabot Corporation announced on July 30, 2026 that President and CEO Sean Keohane will retire and step down from the board effective September 30, 2026, after nearly 25 years with the company and a decade as chief executive. He will remain as a non...
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.