Market Cap
US$2.3b
Last Updated
2020/06/06 02:02 UTC
Data Sources
Company Financials +
Executive Summary
Cabot Corporation operates as a specialty chemicals and performance materials company.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with moderate growth potential.
Similar Companies
Share Price & News
How has Cabot's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CBT's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.3%
CBT
6.7%
US Chemicals
3.8%
US Market
1 Year Return
-8.5%
CBT
-0.7%
US Chemicals
9.7%
US Market
Return vs Industry: CBT underperformed the US Chemicals industry which returned -2.1% over the past year.
Return vs Market: CBT underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| CBT | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.3% | 6.7% | 3.8% |
| 30 Day | 31.4% | 19.3% | 11.4% |
| 90 Day | 16.7% | 11.7% | 6.8% |
| 1 Year | -5.2%-8.5% | 1.7%-0.7% | 12.1%9.7% |
| 3 Year | -16.3%-23.1% | 17.2%-4.6% | 36.2%27.2% |
| 5 Year | 12.5%-1.3% | 28.8%0.6% | 63.7%45.4% |
Price Volatility Vs. Market
How volatile is Cabot's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
How Does Cabot's (NYSE:CBT) P/E Compare To Its Industry, After The Share Price Drop?2 months ago | Simply Wall St
Here's What Cabot Corporation's (NYSE:CBT) ROCE Can Tell Us2 months ago | Simply Wall St
A Sliding Share Price Has Us Looking At Cabot Corporation's (NYSE:CBT) P/E RatioValuation
Is Cabot undervalued compared to its fair value and its price relative to the market?
22.91x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CBT ($41.19) is trading above our estimate of fair value ($22.33)
Significantly Below Fair Value: CBT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CBT is poor value based on its PE Ratio (22.9x) compared to the Chemicals industry average (22x).
PE vs Market: CBT is poor value based on its PE Ratio (22.9x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: CBT is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: CBT is overvalued based on its PB Ratio (2.5x) compared to the US Chemicals industry average (2x).
Next Steps
Future Growth
How is Cabot forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
30.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CBT's forecast earnings growth (30.4% per year) is above the savings rate (2.2%).
Earnings vs Market: CBT's earnings (30.4% per year) are forecast to grow faster than the US market (22.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CBT's revenue (4% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: CBT's revenue (4% 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 low in 3 years time (17.4%).
Next Steps
Past Performance
How has Cabot performed over the past 5 years?
32.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CBT has a large one-off loss of $76.0M impacting its March 31 2020 financial results.
Growing Profit Margin: CBT's current net profit margins (3.3%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: CBT's earnings have grown significantly by 32.1% per year over the past 5 years.
Accelerating Growth: CBT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CBT had negative earnings growth (-62.2%) over the past year, making it difficult to compare to the Chemicals industry average (-11.3%).
Return on Equity
High ROE: CBT's Return on Equity (12.5%) is considered low.
Next Steps
Financial Health
How is Cabot's financial position?
Financial Position Analysis
Short Term Liabilities: CBT's short term assets ($1.2B) exceed its short term liabilities ($563.0M).
Long Term Liabilities: CBT's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: CBT's debt to equity ratio (112.6%) is considered high.
Reducing Debt: CBT's debt to equity ratio has increased from 63.3% to 112.6% over the past 5 years.
Debt Coverage: CBT's debt is well covered by operating cash flow (37.9%).
Interest Coverage: CBT's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Cabot's current dividend yield, its reliability and sustainability?
3.40%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CBT's dividend (3.4%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: CBT's dividend (3.4%) is low compared to the top 25% of dividend payers in the US market (4.32%).
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: At its current payout ratio (77.9%), CBT's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CBT's dividends in 3 years are forecast to be well covered by earnings (43.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Sean Keohane (52yo)
4.25yrs
Tenure
US$6,679,379
Compensation
Mr. Sean D. Keohane serves as Director of Chemours Company since May 3, 2018. He has been the Chief Executive Officer and President of Cabot Corporation since March 11, 2016. Mr. Keohane served as an Execu ...
CEO Compensation Analysis
Compensation vs Market: Sean's total compensation ($USD6.68M) is above average for companies of similar size in the US market ($USD4.72M).
Compensation vs Earnings: Sean's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.25yrs | US$6.68m | 0.17% $4.0m | |
| Senior VP & CFO | 2.08yrs | US$1.57m | 0.014% $320.4k | |
| Senior VP & General Counsel | 1.42yrs | US$1.32m | 0.0052% $119.8k | |
| Senior VP | 4.17yrs | US$1.58m | 0.080% $1.9m | |
| Controller & Principal Accounting Officer | 0.42yr | no data | 0.011% $255.6k | |
| Senior VP & CTO | 2.33yrs | no data | no data | |
| VP of Investor Relations & Treasurer | 3.92yrs | no data | no data | |
| Corporate Communications Director | no data | no data | no data | |
| Senior VP & Chief Human Resources Officer | 3.17yrs | no data | no data | |
| Senior VP of Safety | 2.92yrs | no data | no data |
2.9yrs
Average Tenure
47yo
Average Age
Experienced Management: CBT's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.25yrs | US$6.68m | 0.17% $4.0m | |
| Independent Director | 23.42yrs | US$215.50k | 0.083% $1.9m | |
| Independent Director | 5.75yrs | US$219.96k | no data | |
| Independent Director | 15.25yrs | US$212.04k | 0.0037% $86.5k | |
| Independent Director | 2.42yrs | US$207.99k | 0.012% $284.4k | |
| Independent Director | 7.92yrs | US$217.21k | no data | |
| Independent Non-Executive Chairman | 2.25yrs | US$320.49k | 0.033% $775.5k | |
| Independent Director | 1.75yrs | US$210.25k | no data | |
| Independent Director | 1.08yrs | US$114.63k | no data | |
| Independent Director | 2.75yrs | US$229.28k | 0.0035% $82.3k |
3.5yrs
Average Tenure
62yo
Average Age
Experienced Board: CBT's board of directors are considered experienced (3.5 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cabot Corporation
- Ticker: CBT
- Exchange: NYSE
- Founded: 1882
- Industry: Commodity Chemicals
- Sector: Materials
- Market Cap: US$2.325b
- Shares outstanding: 56.45m
- Website: https://www.cabotcorp.com
Number of Employees
Location
- Cabot Corporation
- Two Seaport Lane
- Suite 1300
- Boston
- Massachusetts
- 02210-2019
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CBT | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Aug 1968 |
| CBT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1968 |
Biography
Cabot Corporation operates as a specialty chemicals and performance materials company. The company offers rubber grade carbon blacks 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 compounds of carbon black and rubber. It also provides specialty grades of carbon black 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. Cabot Corporation sells its products primarily 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 02:02 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/09/30 |
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.