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Cabot

NYSE:CBT
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CBT
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Cabot Corporation operates as a specialty chemicals and performance materials company. The last earnings update was 38 days ago. More info.


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CBT Share Price and Events
7 Day Returns
1%
NYSE:CBT
1.1%
US Chemicals
0.5%
US Market
1 Year Returns
-28.8%
NYSE:CBT
-12.4%
US Chemicals
0.8%
US Market
CBT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cabot (CBT) 1% 6.2% 5.5% -28.8% -1.6% -23.7%
US Chemicals 1.1% 1.6% -6.5% -12.4% 18% 6.1%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • CBT underperformed the Chemicals industry which returned -12.4% over the past year.
  • CBT underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
CBT
Industry
5yr Volatility vs Market

CBT Value

 Is Cabot undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cabot to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cabot.

NYSE:CBT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CBT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.874 (1 + (1- 21%) (47.13%))
1.133
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.133 * 5.96%)
9.49%

Discounted Cash Flow Calculation for NYSE:CBT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cabot is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CBT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.49%)
2019 88.33 Analyst x3 80.68
2020 149.67 Analyst x3 124.86
2021 182.50 Analyst x2 139.06
2022 209.27 Est @ 14.67% 145.64
2023 232.47 Est @ 11.09% 147.77
2024 252.41 Est @ 8.58% 146.54
2025 269.63 Est @ 6.82% 142.98
2026 284.72 Est @ 5.6% 137.90
2027 298.21 Est @ 4.74% 131.92
2028 310.54 Est @ 4.13% 125.47
Present value of next 10 years cash flows $1,322.81
NYSE:CBT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $310.54 × (1 + 2.73%) ÷ (9.49% – 2.73%)
$4,722.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,722.29 ÷ (1 + 9.49%)10
$1,908.04
NYSE:CBT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,322.81 + $1,908.04
$3,230.85
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,230.85 / 58.47
$55.26
NYSE:CBT Discount to Share Price
Calculation Result
Value per share (USD) From above. $55.26
Current discount Discount to share price of $45.47
= -1 x ($45.47 - $55.26) / $55.26
17.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cabot is available for.
Intrinsic value
18%
Share price is $45.47 vs Future cash flow value of $55.26
Current Discount Checks
For Cabot to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cabot's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Cabot's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cabot's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cabot's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CBT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.51
NYSE:CBT Share Price ** NYSE (2019-06-14) in USD $45.47
United States of America Chemicals Industry PE Ratio Median Figure of 68 Publicly-Listed Chemicals Companies 17.79x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cabot.

NYSE:CBT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CBT Share Price ÷ EPS (both in USD)

= 45.47 ÷ 4.51

10.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cabot is good value based on earnings compared to the US Chemicals industry average.
  • Cabot is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cabot's expected growth come at a high price?
Raw Data
NYSE:CBT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
7.4%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:CBT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.09x ÷ 7.4%

1.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cabot is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cabot's assets?
Raw Data
NYSE:CBT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.89
NYSE:CBT Share Price * NYSE (2019-06-14) in USD $45.47
United States of America Chemicals Industry PB Ratio Median Figure of 94 Publicly-Listed Chemicals Companies 2.03x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:CBT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CBT Share Price ÷ Book Value per Share (both in USD)

= 45.47 ÷ 18.89

2.41x

* Primary Listing of Cabot.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cabot is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess Cabot's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Cabot has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CBT Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cabot expected to grow at an attractive rate?
  • Cabot's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cabot's earnings growth is positive but not above the United States of America market average.
  • Cabot's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CBT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CBT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 7.4%
NYSE:CBT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.6%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 11.5%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CBT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CBT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 3,652 420 304 4
2020-09-30 3,461 401 274 5
2019-09-30 3,384 347 224 5
NYSE:CBT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,369 268 273
2018-12-31 3,343 214 77
2018-09-30 3,242 298 -114
2018-06-30 3,115 300 -136
2018-03-31 2,966 371 -177
2017-12-31 2,826 286 69
2017-09-30 2,717 348 246
2017-06-30 2,613 288 225
2017-03-31 2,529 262 234
2016-12-31 2,419 416 209
2016-09-30 2,411 392 145
2016-06-30 2,463 516 136

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cabot's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
  • Cabot's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CBT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Cabot Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CBT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 5.50 5.50 5.50 1.00
2020-09-30 4.85 4.85 4.85 1.00
2019-09-30 3.81 3.81 3.81 1.00
NYSE:CBT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.51
2018-12-31 1.26
2018-09-30 -1.85
2018-06-30 -2.20
2018-03-31 -2.85
2017-12-31 1.11
2017-09-30 3.95
2017-06-30 3.61
2017-03-31 3.75
2016-12-31 3.35
2016-09-30 2.32
2016-06-30 2.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cabot is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Cabot's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cabot has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CBT Past Performance

  How has Cabot performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cabot's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cabot's year on year earnings growth rate has been positive over the past 5 years.
  • Cabot has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Cabot has become profitable in the last year making it difficult to compare the US Chemicals industry average.
Earnings and Revenue History
Cabot's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cabot Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CBT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,369.00 273.00 287.00 66.00
2018-12-31 3,343.00 77.00 301.00 67.00
2018-09-30 3,242.00 -114.00 304.00 66.00
2018-06-30 3,115.00 -136.00 291.00 64.00
2018-03-31 2,966.00 -177.00 279.00 61.00
2017-12-31 2,826.00 69.00 266.00 59.00
2017-09-30 2,717.00 246.00 259.00 56.00
2017-06-30 2,613.00 225.00 270.00 53.00
2017-03-31 2,529.00 234.00 269.00 51.00
2016-12-31 2,419.00 209.00 264.00 49.00
2016-09-30 2,411.00 145.00 266.00 48.00
2016-06-30 2,463.00 136.00 251.00 49.00
2016-03-31 2,536.00 -366.00 256.00 52.00
2015-12-31 2,662.00 -388.00 263.00 54.00
2015-09-30 2,871.00 -336.00 271.00 58.00
2015-06-30 3,111.00 -348.00 281.00 58.00
2015-03-31 3,357.00 150.00 290.00 58.00
2014-12-31 3,561.00 160.00 303.00 60.00
2014-09-30 3,647.00 195.00 309.00 60.00
2014-06-30 3,632.00 214.00 304.00 65.00
2014-03-31 3,593.00 219.00 300.00 66.00
2013-12-31 3,534.00 212.00 296.00 65.00
2013-09-30 3,456.00 153.00 290.00 68.00
2013-06-30 3,408.00 142.00 286.00 68.00
2013-03-31 3,353.00 147.00 283.00 69.00
2012-12-31 3,358.00 166.00 273.00 74.00
2012-09-30 3,291.00 181.00 279.00 72.00
2012-06-30 3,285.00 187.00 260.00 71.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Cabot has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Cabot used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • Cabot has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cabot's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cabot has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CBT Health

 How is Cabot's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cabot's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cabot is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cabot's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cabot's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cabot Company Filings, last reported 2 months ago.

NYSE:CBT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,232.00 1,253.00 176.00
2018-12-31 1,276.00 1,191.00 142.00
2018-09-30 1,279.00 1,029.00 175.00
2018-06-30 1,289.00 1,004.00 131.00
2018-03-31 1,343.00 961.00 179.00
2017-12-31 1,472.00 950.00 189.00
2017-09-30 1,625.00 951.00 280.00
2017-06-30 1,477.00 950.00 198.00
2017-03-31 1,398.00 957.00 133.00
2016-12-31 1,277.00 947.00 189.00
2016-09-30 1,372.00 948.00 200.00
2016-06-30 1,383.00 1,004.00 222.00
2016-03-31 1,353.00 1,004.00 178.00
2015-12-31 1,255.00 1,005.00 84.00
2015-09-30 1,338.00 1,020.00 77.00
2015-06-30 1,368.00 1,152.00 84.00
2015-03-31 1,837.00 1,157.00 94.00
2014-12-31 1,976.00 1,183.00 88.00
2014-09-30 2,064.00 1,099.00 67.00
2014-06-30 2,206.00 1,192.00 101.00
2014-03-31 2,149.00 1,448.00 89.00
2013-12-31 2,136.00 1,494.00 105.00
2013-09-30 2,083.00 1,298.00 95.00
2013-06-30 2,001.00 1,452.00 76.00
2013-03-31 1,950.00 1,513.00 86.00
2012-12-31 1,969.00 1,501.00 92.00
2012-09-30 1,939.00 1,419.00 120.00
2012-06-30 1,890.00 699.00 407.00
  • Cabot's level of debt (101.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (67.2% vs 101.7% today).
  • Debt is well covered by operating cash flow (21.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess Cabot's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cabot has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CBT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.08%
Current annual income from Cabot dividends. Estimated to be 3.07% next year.
If you bought $2,000 of Cabot shares you are expected to receive $62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cabot's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Cabot's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CBT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 54 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CBT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 1.43 2.00
2020-09-30 1.40 2.00
2019-09-30 1.37 2.00
NYSE:CBT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 1.400 3.201
2019-01-11 1.320 2.919
2018-11-09 1.320 2.900
2018-07-16 1.320 2.191
2018-05-10 1.320 2.136
2018-01-12 1.260 2.095
2017-11-10 1.260 2.058
2017-07-14 1.260 2.273
2017-05-10 1.260 2.383
2017-01-13 1.200 2.085
2016-11-11 1.200 2.310
2016-07-08 1.200 2.392
2016-05-24 1.200 2.613
2016-01-08 0.880 1.983
2015-11-13 0.880 2.130
2015-07-10 0.880 2.495
2015-05-08 0.880 2.146
2015-01-09 0.880 1.981
2014-11-14 0.880 2.029
2014-07-09 0.880 1.710
2014-05-08 0.880 1.512
2014-01-10 0.800 1.477
2013-11-08 0.800 1.620
2013-07-12 0.800 1.905
2013-05-09 0.800 2.061
2013-01-15 0.800 2.185
2012-11-09 0.800 2.074
2012-07-10 0.800 2.165
2012-05-11 0.800 2.092
2012-01-13 0.720 1.769
2011-11-11 0.720 2.230
2011-07-07 0.720 2.283
2011-05-20 0.720 1.810
2011-01-14 0.720 1.637
2010-11-12 0.720 1.929
2010-07-08 0.720 2.346
2010-05-12 0.720 2.676
2010-05-10 0.720 2.401
2010-04-28 0.720 2.301
2009-11-13 0.720 2.567
2009-07-13 0.720 3.571

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cabot's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Cabot's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cabot afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cabot has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CBT Management

 What is the CEO of Cabot's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sean Keohane
COMPENSATION $6,775,442
AGE 51
TENURE AS CEO 3.3 years
CEO Bio

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 Executive Vice President and President of Reinforcement Materials Segment at Cabot Corporation from November 2014 to March 11, 2016. He served as Senior Vice President and President of Performance Materials Segment of Cabot Corporation from March 2012 to November 2014. He served as General Manager of Performance Segment of Cabot Corporation since May 2008 and Vice President from March 2005 to March 2012. Mr. Keohane served as General Manager of Performance Product Business Group of Cabot Corp. from March 17, 2005 to May 2008. He joined Cabot in 2002 as Global Marketing Director for Cabot's Carbon Black business. Prior to Cabot, he worked for Pratt & Whitney, a division of United Technologies in a variety of leadership positions. He has been Director of Cabot Corporation since March 11, 2016. He has been a Director of American Chemistry Council, a trade association representing the business of chemistry at the global, national and state levels since 2016. Mr. Keohane holds an MBA from Harvard Business School and a BS degree from Providence College.

CEO Compensation
  • Sean's compensation has increased in line with Cabot recently becoming profitable.
  • Sean's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cabot management team in years:

2.5
Average Tenure
49.5
Average Age
  • The tenure for the Cabot management team is about average.
Management Team

Sean Keohane

TITLE
President
COMPENSATION
$7M
AGE
51
TENURE
3.3 yrs

Erica McLaughlin

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
42
TENURE
1.1 yrs

Bart Kalkstein

TITLE
Senior VP
COMPENSATION
$2M
AGE
48
TENURE
3.2 yrs

Patrick Prevost

TITLE
Advisor & Director
COMPENSATION
$194K
AGE
63
TENURE
3.3 yrs

Patricia Hubbard

TITLE
Senior VP & CTO
TENURE
1.3 yrs

Steven Delahunt

TITLE
VP of Investor Relations & Treasurer
TENURE
2.9 yrs

Karen Kalita

TITLE
Senior VP & General Counsel
TENURE
0.4 yrs

Art Wood

TITLE
Senior VP & Chief Human Resources Officer
TENURE
2.2 yrs

Martin O'Neill

TITLE
Senior VP of Safety
TENURE
1.9 yrs

Jeff Zhu

TITLE
Senior VP & President of Asia Pacific Region
TENURE
7.2 yrs
Board of Directors Tenure

Average tenure and age of the Cabot board of directors in years:

5.8
Average Tenure
62.5
Average Age
  • The tenure for the Cabot board of directors is about average.
Board of Directors

Sue Rataj

TITLE
Non-Executive Chairman
COMPENSATION
$267K
AGE
61
TENURE
1.3 yrs

Sean Keohane

TITLE
President
COMPENSATION
$7M
AGE
51
TENURE
3.3 yrs

John O'Brien

TITLE
Independent Non-Executive Director
COMPENSATION
$250K
AGE
74
TENURE
29.4 yrs

Matthias Wolfgruber

TITLE
Independent Director
COMPENSATION
$209K
AGE
64
TENURE
4.8 yrs

Mike Morrow

TITLE
Independent Director
COMPENSATION
$208K
AGE
62
TENURE
1.8 yrs

Mark Wrighton

TITLE
Independent Director
COMPENSATION
$208K
AGE
68
TENURE
22.4 yrs

Juan Enriquez

TITLE
Independent Director
COMPENSATION
$210K
AGE
58
TENURE
14.3 yrs

Patrick Prevost

TITLE
Advisor & Director
COMPENSATION
$194K
AGE
63
TENURE
11.4 yrs

Bill Kirby

TITLE
Independent Director
COMPENSATION
$218K
AGE
67
TENURE
6.9 yrs

Cynthia Arnold

TITLE
Independent Director
COMPENSATION
$179K
AGE
61
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Aug 18 Sell Nicholas Cross Individual 21. Aug 18 21. Aug 18 -6,000 $65.87 $-395,196
22. Aug 18 Sell Patrick Prevost Individual 20. Aug 18 22. Aug 18 -60,000 $65.65 $-3,927,165
X
Management checks
We assess Cabot's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cabot has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CBT News

Simply Wall St News

Some Cabot (NYSE:CBT) Shareholders Are Down 27%

Investors in Cabot Corporation (NYSE:CBT) have tasted that bitter downside in the last year, as the share price dropped 27%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the last year Cabot grew its earnings per share, moving from a loss to a profit.

Simply Wall St -

Is Cabot Corporation (NYSE:CBT) Potentially Undervalued?

Cabot Corporation (NYSE:CBT), which is in the chemicals business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $48.05 and falling to the lows of $39.94. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CBT.

Simply Wall St -

Cabot Corporation (NYSE:CBT): A Fundamentally Attractive Investment

Established dividend payer with adequate balance sheet CBT's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. … NYSE:CBT Historical Debt, May 23rd 2019 Income investors would also be happy to know that CBT is a great dividend company, with a current yield standing at 3.3%. … Take a look at our free research report of analyst consensus for CBT’s outlook.

Simply Wall St -

Calculating The Fair Value Of Cabot Corporation (NYSE:CBT)

In this article we are going to estimate the intrinsic value of Cabot Corporation (NYSE:CBT) by taking the expected future cash flows and discounting them to their present value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $67.50 $170.00 $182.50 $193.06 $202.46 $211.02 $219.00 $226.58 $233.93 $241.16 Growth Rate Estimate Source Analyst x2 Analyst x3 Analyst x2 Est @ 5.79% Est @ 4.87% Est @ 4.23% Est @ 3.78% Est @ 3.46% Est @ 3.24% Est @ 3.09% Present Value ($, Millions) Discounted @ 9.47% $61.66 $141.86 $139.12 $134.44 $128.79 $122.62 $116.25 $109.87 $103.62 $97.58 Present Value of 10-year Cash Flow (PVCF)= $1.16b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

How Does Investing In Cabot Corporation (NYSE:CBT) Impact The Volatility Of Your Portfolio?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).

Simply Wall St -

Does Cabot Corporation's (NYSE:CBT) 12% Earnings Growth Reflect The Long-Term Trend?

After looking at Cabot Corporation's (NYSE:CBT) latest earnings update (31 December 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … CBT's trailing twelve-month earnings (from 31 December 2018) of US$77m has.

Simply Wall St -

Despite Its High P/E Ratio, Is Cabot Corporation (NYSE:CBT) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use Cabot Corporation's (NYSE:CBT) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Are Cabot Corporation's (NYSE:CBT) Interest Costs Too High?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Cabot Corporation (NYSE:CBT) with a market-capitalization of US$2.5b, rarely draw their attention. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … This article will examine CBT’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth.

Simply Wall St -

Is Cabot Corporation’s (NYSE:CBT) 17% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

If You Had Bought Cabot (NYSE:CBT) Stock A Year Ago, You'd Be Sitting On A 30% Loss, Today

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the last year Cabot grew its earnings per share, moving from a loss to a profit. … Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit.

Simply Wall St -

CBT Company Info

Description

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, 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. Further, it provides cesium formate brines used as a drilling and completion fluid primarily in high pressure and high temperature oil and gas well construction; and fine cesium chemicals used in a range of industries and applications that include catalysts, doping agents, and brazing fluxes. The company 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.

Details
Name: Cabot Corporation
CBT
Exchange: NYSE
Founded: 1882
$2,658,496,490
58,467,044
Website: http://www.cabotcorp.com
Address: Cabot Corporation
Two Seaport Lane,
Suite 1300,
Boston,
Massachusetts, 02210,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CBT Common Stock New York Stock Exchange US USD 23. Aug 1968
DB CBT Common Stock Deutsche Boerse AG DE EUR 23. Aug 1968
Number of employees
Current staff
Staff numbers
4,600
Cabot employees.
Industry
Commodity Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:35
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/31
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.