CBT Stock Overview
Cabot Corporation operates as a specialty chemicals and performance materials company.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$67.76|
|52 Week High||US$74.87|
|52 Week Low||US$47.59|
|1 Month Change||0.97%|
|3 Month Change||-2.81%|
|1 Year Change||8.80%|
|3 Year Change||58.32%|
|5 Year Change||31.73%|
|Change since IPO||637.52%|
Recent News & Updates
Cabot Corporation: Excellent Performance, Good Future
Cabot Corporation has outperformed comparative indexes since I wrote about the company last - some time ago. I still have a small portion of my investment. As a commodity chemicals business, Cabot is potentially slated to outperform in this environment, even with pressure from certain industries. I expect Cabot to outperform based on current macro expectations - and because of this, I'm revisiting my thesis here.
|CBT||US Chemicals||US Market|
Return vs Industry: CBT exceeded the US Chemicals industry which returned -6.2% over the past year.
Return vs Market: CBT exceeded the US Market which returned -10.4% over the past year.
|CBT Average Weekly Movement||4.1%|
|Chemicals Industry Average Movement||7.1%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.7%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: CBT is less volatile than 75% 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
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
|CBT fundamental statistics|
Is CBT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CBT income statement (TTM)|
|Cost of Revenue||US$3.05b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||2.30|
|Net Profit Margin||3.35%|
How did CBT perform over the long term?See historical performance and comparison
2.2%Current Dividend Yield
Is Cabot undervalued compared to its fair value and its price relative to the market?
Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CBT ($67.76) is trading below our estimate of fair value ($113.75)
Significantly Below Fair Value: CBT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CBT is poor value based on its PE Ratio (29.5x) compared to the US Chemicals industry average (17x).
PE vs Market: CBT is poor value based on its PE Ratio (29.5x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: CBT is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: CBT is overvalued based on its PB Ratio (4.2x) compared to the US Chemicals industry average (2.1x).
How is Cabot forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CBT's forecast earnings growth (43.6% per year) is above the savings rate (1.9%).
Earnings vs Market: CBT's earnings (43.6% per year) are forecast to grow faster than the US market (12.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CBT's revenue (3% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: CBT's revenue (3% 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 high in 3 years time (38.8%)
How has Cabot performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CBT has a large one-off loss of $189.0M impacting its March 31 2022 financial results.
Growing Profit Margin: CBT became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CBT's earnings have declined by 13.7% 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 (34.5%).
Return on Equity
High ROE: CBT's Return on Equity (15.5%) is considered low.
How is Cabot's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CBT's short term assets ($1.8B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: CBT's short term assets ($1.8B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: CBT's net debt to equity ratio (105.3%) is considered high.
Reducing Debt: CBT's debt to equity ratio has increased from 68.4% to 125.4% over the past 5 years.
Debt Coverage: CBT's debt is not well covered by operating cash flow (9.9%).
Interest Coverage: CBT's interest payments on its debt are well covered by EBIT (14.3x coverage).
What is Cabot current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CBT's dividend (2.18%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: CBT's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: CBT's dividends per share have been stable in the past 10 years.
Growing Dividend: CBT's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (62.8%), CBT's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: CBT is paying a dividend but the company has no free cash flows.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sean Keohane (54 yo)
Mr. Sean D. Keohane serves as Independent Director of The Chemours Company since May 3, 2018. He has been the Chief Executive Officer and President of Cabot Corporation since March 11, 2016. He was a membe...
CEO Compensation Analysis
Compensation vs Market: Sean's total compensation ($USD8.24M) is about average for companies of similar size in the US market ($USD6.90M).
Compensation vs Earnings: Sean's compensation has been consistent with company performance over the past year.
Experienced Management: CBT's management team is seasoned and experienced (5.1 years average tenure).
Experienced Board: CBT's board of directors are considered experienced (5.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cabot Corporation's employee growth, exchange listings and data sources
- Name: Cabot Corporation
- Ticker: CBT
- Exchange: NYSE
- Founded: 1882
- Industry: Commodity Chemicals
- Sector: Materials
- Implied Market Cap: US$3.834b
- Shares outstanding: 56.59m
- Website: https://www.cabotcorp.com
Number of Employees
- Cabot Corporation
- Two Seaport Lane
- Suite 1400
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/15 00:00|
|End of Day Share Price||2022/05/13 00:00|
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.