Stock Analysis Report

Executive Summary

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


Trading at 21.4% below its fair value

Earnings are forecast to grow 20.5% per year

Became profitable this year

Pays a high and reliable dividend of 3.05%

Risk Analysis

Has a high level of debt

Snowflake Analysis

Undervalued established dividend payer.

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 has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Chemicals


US Market

1 Year Return




US Chemicals


US Market

Return vs Industry: CBT underperformed the US Chemicals industry which returned 1.6% over the past year.

Return vs Market: CBT underperformed the US Market which returned 24.7% over the past year.

Shareholder returns

7 Day-0.07%3.1%2.0%
30 Day-5.9%1.1%4.3%
90 Day2.4%6.4%12.2%
1 Year-2.9%-6.0%15.1%-0.6%26.1%23.5%
3 Year-10.6%-17.2%36.2%10.7%53.1%43.2%
5 Year22.7%8.6%50.0%17.9%75.5%56.1%

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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CBT ($45.84) is trading below our estimate of fair value ($58.32)

Significantly Below Fair Value: CBT is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CBT is good value based on its PE Ratio (17.4x) compared to the Chemicals industry average (20.8x).

PE vs Market: CBT is good value based on its PE Ratio (17.4x) compared to the US market (18.9x).

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 (2.6x) compared to the US Chemicals industry average (2.2x).

Next Steps

Future Growth

How is Cabot forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBT's forecast earnings growth (20.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CBT's earnings (20.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CBT's revenue (2.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CBT's revenue (2.8% 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 (23.2%)

Next Steps

Past Performance

How has Cabot performed over the past 5 years?


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 grown by 18.6% 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%).

Return on Equity

High ROE: CBT's Return on Equity (16.4%) is considered low.

Return on Assets

Return on Capital Employed

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 ($599.0M).

Long Term Liabilities: CBT's short term assets ($1.2B) do not cover its long term liabilities ($1.3B).

Debt to Equity History and Analysis

Debt Level: CBT's debt to equity ratio (93.8%) is considered high.

Reducing Debt: CBT's debt to equity ratio has increased from 53.3% to 93.8% over the past 5 years.

Debt Coverage: CBT's debt is well covered by operating cash flow (34.1%).

Interest Coverage: CBT's interest payments on its debt are well covered by EBIT (7.2x coverage).

Balance Sheet

Inventory Level: CBT has a high level of physical assets or inventory.

Debt Coverage by Assets: CBT's debt is covered by short term assets (assets are 1.1x debt).

Next Steps


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


Current Dividend Yield

Upcoming Dividend Payment

Purchase Cabot before the 'Buy Limit' to receive their next dividend payment.

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: CBT's dividend (3.05%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CBT's dividend (3.05%) is low compared to the top 25% of dividend payers in the US market (3.66%).

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 reasonable payout ratio (51.5%), CBT's dividend 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 (33.4% payout ratio).

Next Steps


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


Average management tenure


Sean Keohane (52yo)





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 ($USD6.78M) is above average for companies of similar size in the US market ($USD4.99M).

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

Management Age and Tenure


Average Tenure


Average Age

Experienced Management: CBT's management team is considered experienced (3.1 years average tenure).

Board Age and Tenure


Average Tenure


Average Age

Experienced Board: CBT's board of directors are considered experienced (6.4 years average tenure).

Insider Trading

Insider Buying: CBT insiders have only sold shares in the past 3 months.

Recent Insider Transactions

SellUS$193,83816 Dec 19
Hobart Kalkstein
Senior Key Executive
Senior VP
Max PriceUS$48.75

Ownership Breakdown

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

Management Team

  • Patrick Prevost (64yo)

    Advisor & Director

    • Tenure: 12yrs
    • Compensation: US$194.45k
  • Sean Keohane (52yo)


    • Tenure: 3.8yrs
    • Compensation: US$6.78m
  • Steven Delahunt

    VP of Investor Relations & Treasurer

    • Tenure: 3.5yrs
  • Erica McLaughlin (42yo)

    Senior VP & CFO

    • Tenure: 1.7yrs
    • Compensation: US$1.24m
  • Bart Kalkstein (49yo)

    Senior VP

    • Tenure: 3.8yrs
    • Compensation: US$1.71m
  • Art Wood

    Senior VP & Chief Human Resources Officer

    • Tenure: 2.8yrs
  • Patricia Hubbard

    Senior VP & CTO

    • Tenure: 1.9yrs
  • Karen Kalita

    Senior VP & General Counsel

    • Tenure: 1yrs
  • Vanessa Craigie

    Corporate Communications Director

    • Lisa Dumont (45yo)

      Controller & Principal Accounting Officer

      Board Members

      • John O'Brien (75yo)

        Independent Non-Executive Director

        • Tenure: 30yrs
        • Compensation: US$249.56k
      • Mark Wrighton (69yo)

        Independent Director

        • Tenure: 23yrs
        • Compensation: US$208.37k
      • Matthias Wolfgruber (65yo)

        Independent Director

        • Tenure: 5.3yrs
        • Compensation: US$209.17k
      • Patrick Prevost (64yo)

        Advisor & Director

        • Tenure: 12yrs
        • Compensation: US$194.45k
      • Juan Enriquez (59yo)

        Independent Director

        • Tenure: 14.8yrs
        • Compensation: US$209.88k
      • Sean Keohane (52yo)


        • Tenure: 3.8yrs
        • Compensation: US$6.78m
      • Cynthia Arnold (62yo)

        Independent Director

        • Tenure: 2yrs
        • Compensation: US$178.51k
      • Bill Kirby (68yo)

        Independent Director

        • Tenure: 7.5yrs
        • Compensation: US$218.37k
      • Sue Rataj (62yo)

        Non-Executive Chairman

        • Tenure: 1.8yrs
        • Compensation: US$267.09k
      • Mike Morrow (63yo)

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: US$208.01k

      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$2.553b
      • Shares outstanding: 56.98m
      • Website: https://www.cabotcorp.com

      Number of Employees


      • Cabot Corporation
      • Two Seaport Lane
      • Suite 1300
      • Boston
      • Massachusetts
      • 2210
      • United States


      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CBTNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1968
      CBTDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1968


      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

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/18 23:33
      End of Day Share Price2020/01/17 00:00
      Annual Earnings2019/09/30

      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.