(CBT) Cabot - Overview
Sector: Basic Materials | Industry: Specialty Chemicals | Exchange: NYSE (USA) | Market Cap: 4.039m USD | Total Return: 15.4% in 12m
Avg Turnover: 27.7M
EPS Trend: 78.2%
Qual. Beats: 2
Rev. Trend: -84.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Avwap Ph Week
Cabot Corporation is a global specialty chemicals and performance materials manufacturer headquartered in Boston. The company operates through two primary segments: Reinforcement Materials and Performance Chemicals. Its core business involves the production of reinforcing carbons, specialty carbons, fumed silica, and aerogel used across diverse industries including automotive, electronics, and construction.
The company occupies a critical position in the automotive supply chain, as carbon black is an essential additive for tire durability and performance. Additionally, the shift toward vehicle electrification has increased demand for Cabot’s conductive additives and fumed alumina, which are vital components in the manufacturing of lithium-ion batteries.
Cabot utilizes a global distribution network to serve markets in the Americas, Europe, and the Asia Pacific. Investors looking for deeper fundamental analysis should review the latest valuation metrics on ValueRay. The firm’s business model relies on high-volume industrial applications while expanding into high-growth specialty sectors like inkjet colorants and carbon nanotubes.
- Global tire replacement demand drives Reinforcement Materials segment revenue growth
- Lithium-ion battery market expansion accelerates specialty carbon additive adoption
- Raw material cost volatility impacts margins through carbon black oil pricing
- Automotive production recovery supports masterbatch and engineered elastomer sales volumes
- Environmental regulations on carbon emissions increase operational compliance costs and CAPEX
| Net Income: 285.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 4.17 > 1.0 |
| NWC/Revenue: 13.40% < 20% (prev 20.09%; Δ -6.69% < -1%) |
| CFO/TA 0.17 > 3% & CFO 671.0m > Net Income 285.0m |
| Net Debt (1.13b) to EBITDA (751.0m): 1.51 < 3 |
| Current Ratio: 1.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (52.2m) vs 12m ago -4.04% < -2% |
| Gross Margin: 24.95% > 18% (prev 0.25%; Δ 2.47k% > 0.5%) |
| Asset Turnover: 93.09% > 50% (prev 103.3%; Δ -10.19% > 0%) |
| Interest Coverage Ratio: 7.66 > 6 (EBITDA TTM 751.0m / Interest Expense TTM 76.0m) |
| A: 0.12 (Total Current Assets 1.55b - Total Current Liabilities 1.07b) / Total Assets 3.90b |
| B: 0.47 (Retained Earnings 1.83b / Total Assets 3.90b) |
| C: 0.15 (EBIT TTM 582.0m / Avg Total Assets 3.84b) |
| D: 0.71 (Book Value of Equity 1.57b / Total Liabilities 2.21b) |
| Altman-Z'' = 4.11 = AA |
| DSRI: 0.97 (Receivables 657.0m/739.0m, Revenue 3.58b/3.91b) |
| GMI: 1.00 (GM 24.95% / 24.87%) |
| AQI: 1.01 (AQ_t 0.15 / AQ_t-1 0.15) |
| SGI: 0.91 (Revenue 3.58b / 3.91b) |
| TATA: -0.10 (NI 285.0m - CFO 671.0m) / TA 3.90b) |
| Beneish M = -3.21 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 78.34 with a total of 277,665 shares traded.
Over the past week, the price has changed by +2.98%,
over one month by +10.61%,
over three months by +12.51% and
over the past year by +15.44%.
Cabot has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold CBT.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 82.2 | 4.9% |
P/E Forward = 10.6157
P/S = 1.1299
P/B = 2.5877
P/EG = 1.0017
Revenue TTM = 3.58b USD
EBIT TTM = 582.0m USD
EBITDA TTM = 751.0m USD
Long Term Debt = 863.0m USD (from longTermDebt, last quarter)
Short Term Debt = 436.0m USD (from shortTermDebt, last quarter)
Debt = 1.38b USD (from shortLongTermDebtTotal, last quarter) + Leases 85.0m
Net Debt = 1.13b USD (calculated: Debt 1.38b - CCE 252.0m)
Enterprise Value = 5.17b USD (4.04b + Debt 1.38b - CCE 252.0m)
Interest Coverage Ratio = 7.66 (Ebit TTM 582.0m / Interest Expense TTM 76.0m)
EV/FCF = 11.27x (Enterprise Value 5.17b / FCF TTM 459.0m)
FCF Yield = 8.88% (FCF TTM 459.0m / Enterprise Value 5.17b)
FCF Margin = 12.84% (FCF TTM 459.0m / Revenue TTM 3.58b)
Net Margin = 7.97% (Net Income TTM 285.0m / Revenue TTM 3.58b)
Gross Margin = 24.95% ((Revenue TTM 3.58b - Cost of Revenue TTM 2.68b) / Revenue TTM)
Gross Margin QoQ = 24.00% (prev 24.85%)
Tobins Q-Ratio = 1.33 (Enterprise Value 5.17b / Total Assets 3.90b)
Interest Expense / Debt = 5.49% (Interest Expense 76.0m / Debt 1.38b)
Taxrate = 36.07% (44.0m / 122.0m)
NOPAT = 372.1m (EBIT 582.0m * (1 - 36.07%))
Current Ratio = 1.45 (Total Current Assets 1.55b / Total Current Liabilities 1.07b)
Debt / Equity = 0.88 (Debt 1.38b / totalStockholderEquity, last quarter 1.57b)
Debt / EBITDA = 1.51 (Net Debt 1.13b / EBITDA 751.0m)
Debt / FCF = 2.47 (Net Debt 1.13b / FCF TTM 459.0m)
Total Stockholder Equity = 1.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.42% (Net Income 285.0m / Total Assets 3.90b)
RoE = 18.29% (Net Income TTM 285.0m / Total Stockholder Equity 1.56b)
RoCE = 24.03% (EBIT 582.0m / Capital Employed (Equity 1.56b + L.T.Debt 863.0m))
RoIC = 11.80% (NOPAT 372.1m / Invested Capital 3.15b)
WACC = 7.41% (E(4.04b)/V(5.42b) * Re(8.74%) + D(1.38b)/V(5.42b) * Rd(5.49%) * (1-Tc(0.36)))
Discount Rate = 8.74% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -2.92%
[DCF] Terminal Value 77.97% ; FCFF base≈390.6m ; Y1≈447.8m ; Y5≈659.0m
[DCF] Fair Price = 170.2 (EV 9.92b - Net Debt 1.13b = Equity 8.78b / Shares 51.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 78.18 | EPS CAGR: 10.89% | SUE: 1.50 | # QB: 2
Revenue Correlation: -84.15 | Revenue CAGR: -3.80% | SUE: -0.31 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.62 | Chg30d=-2.30% | Revisions=-43% | Analysts=5
EPS current Year (2026-09-30): EPS=6.26 | Chg30d=+0.48% | Revisions=+25% | GrowthEPS=-13.7% | GrowthRev=-3.5%
EPS next Year (2027-09-30): EPS=6.93 | Chg30d=+1.02% | Revisions=+43% | GrowthEPS=+10.7% | GrowthRev=+2.8%
[Analyst] Revisions Ratio: -43%