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CBT

CabotNYSE:CBT Stock Report

Last Price

US$58.08

Market Cap

US$3.3b

7D

-1.3%

1Y

21.4%

Updated

19 Jan, 2022

Data

Company Financials +
CBT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends5/6

CBT Stock Overview

Cabot Corporation operates as a specialty chemicals and performance materials company.

Cabot Competitors

LyondellBasell Industries

NYSE:LYB

US$33.3b

Olin

NYSE:OLN

US$8.3b

Orion Engineered Carbons

NYSE:OEC

US$1.1b

Honeywell International

NasdaqGS:HON

US$145.1b

Price History & Performance

Summary of all time highs, changes and price drops for Cabot
Historical stock prices
Current Share PriceUS$58.08
52 Week HighUS$65.25
52 Week LowUS$42.72
Beta1.64
1 Month Change11.89%
3 Month Change7.98%
1 Year Change21.35%
3 Year Change28.33%
5 Year Change3.24%
Change since IPO532.16%

Recent News & Updates

Dec 07
Under The Bonnet, Cabot's (NYSE:CBT) Returns Look Impressive

Under The Bonnet, Cabot's (NYSE:CBT) Returns Look Impressive

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...

Nov 29

Cabot: A Few Interesting Developments

CBT’s decision to sell its Purification Solutions division should be taken well. CBT’s Investor Day to be held later this week may prove to be a positive trigger. The stock is well-placed relative to other material stocks and also appears to be cheap relative to its average forward multiples.

Nov 03
When Should You Buy Cabot Corporation (NYSE:CBT)?

When Should You Buy Cabot Corporation (NYSE:CBT)?

While Cabot Corporation ( NYSE:CBT ) might not be the most widely known stock at the moment, it saw a decent share...

Shareholder Returns

CBTUS ChemicalsUS Market
7D-1.3%-3.5%-4.6%
1Y21.4%12.0%7.7%

Return vs Industry: CBT exceeded the US Chemicals industry which returned 13% over the past year.

Return vs Market: CBT exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is CBT's price volatile compared to industry and market?
CBT volatility
CBT Average Weekly Movement4.3%
Chemicals Industry Average Movement5.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: CBT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CBT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18824,500Sean Keohanehttps://www.cabotcorp.com

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.

Cabot Fundamentals Summary

How do Cabot's earnings and revenue compare to its market cap?
CBT fundamental statistics
Market CapUS$3.30b
Earnings (TTM)US$247.00m
Revenue (TTM)US$3.41b

13.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CBT income statement (TTM)
RevenueUS$3.41b
Cost of RevenueUS$2.60b
Gross ProfitUS$806.00m
ExpensesUS$559.00m
EarningsUS$247.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 31, 2022

Earnings per share (EPS)4.35
Gross Margin23.64%
Net Profit Margin7.25%
Debt/Equity Ratio103.6%

How did CBT perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

32%

Payout Ratio

Does CBT pay a reliable dividends?

See CBT dividend history and benchmarks
When do you need to buy CBT by to receive an upcoming dividend?
Cabot dividend dates
Ex Dividend DateFeb 24 2022
Dividend Pay DateMar 11 2022
Days until Ex dividend35 days
Days until Dividend pay date50 days

Does CBT pay a reliable dividends?

See CBT dividend history and benchmarks

Valuation

Is Cabot undervalued compared to its fair value and its price relative to the market?

13.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBT ($58.08) is trading above our estimate of fair value ($51.74)

Significantly Below Fair Value: CBT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CBT is good value based on its PE Ratio (13.4x) compared to the US Chemicals industry average (21.6x).

PE vs Market: CBT is good value based on its PE Ratio (13.4x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: CBT is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CBT is overvalued based on its PB Ratio (3.5x) compared to the US Chemicals industry average (2.5x).


Future Growth

How is Cabot forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBT's forecast earnings growth (15.4% per year) is above the savings rate (2%).

Earnings vs Market: CBT's earnings (15.4% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: CBT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBT's revenue (4.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CBT's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBT's Return on Equity is forecast to be very high in 3 years time (48.3%).


Past Performance

How has Cabot performed over the past 5 years?

-24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBT has high quality earnings.

Growing Profit Margin: CBT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CBT's earnings have declined by 24.6% per year over the past 5 years.

Accelerating Growth: CBT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CBT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (17.5%).


Return on Equity

High ROE: Whilst CBT's Return on Equity (26.24%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Cabot's financial position?


Financial Position Analysis

Short Term Liabilities: CBT's short term assets ($1.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: CBT's short term assets ($1.4B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: CBT's net debt to equity ratio (88.2%) is considered high.

Reducing Debt: CBT's debt to equity ratio has increased from 69.1% to 103.6% over the past 5 years.

Debt Coverage: CBT's debt is well covered by operating cash flow (22.8%).

Interest Coverage: CBT's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Dividend

What is Cabot current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 20 2022Ex Dividend DateFeb 24 2022Dividend Pay DateMar 11 202215 days from Ex DividendBuy in the next 35 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CBT's dividend (2.55%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CBT's dividend (2.55%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: CBT's dividends per share have been stable in the past 10 years.

Growing Dividend: CBT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), CBT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBT's dividends in 3 years are forecast to be well covered by earnings (26.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Sean Keohane (54 yo)

5.83yrs

Tenure

US$5,817,523

Compensation

Mr. Sean D. Keohane serves as Independent Director of The Chemours Companysince May 3, 2018. He has been the Chief Executive Officer and President of Cabot Corporation since March 11, 2016. He was a member...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD5.82M) is about average for companies of similar size in the US market ($USD5.14M).

Compensation vs Earnings: Sean's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CBT's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: CBT's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cabot Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Cabot Corporation
  • Ticker: CBT
  • Exchange: NYSE
  • Founded: 1882
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: US$3.299b
  • Shares outstanding: 56.80m
  • Website: https://www.cabotcorp.com

Number of Employees


Location

  • Cabot Corporation
  • Two Seaport Lane
  • Suite 1400
  • Boston
  • Massachusetts
  • 02210-2019
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:32
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.