NYSE:CBT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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


Market Performance


7 Day Return

-3.1%

CBT

-1.6%

US Chemicals

-1.1%

US Market


1 Year Return

-13.2%

CBT

5.6%

US Chemicals

15.6%

US Market

Return vs Industry: CBT underperformed the US Chemicals industry which returned 9% over the past year.

Return vs Market: CBT underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CBTIndustryMarket
7 Day-3.1%-1.6%-1.1%
30 Day12.5%3.3%4.2%
90 Day5.2%4.1%6.3%
1 Year-10.2%-13.2%8.1%5.6%18.2%15.6%
3 Year-28.2%-34.2%12.6%-8.4%39.6%30.4%
5 Year26.2%10.5%57.1%20.8%79.5%59.2%

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

Valuation

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

34.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBT ($39.62) is trading above our estimate of fair value ($22.21)

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 (34.7x) compared to the US Chemicals industry average (27.1x).

PE vs Market: CBT is poor value based on its PE Ratio (34.7x) compared to the US market (19.1x).


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 (2.4x) 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 5 analysts?

51.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBT's forecast earnings growth (51.2% per year) is above the savings rate (2.2%).

Earnings vs Market: CBT's earnings (51.2% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: CBT's revenue (4.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CBT's revenue (4.9% 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 (17.6%).


Next Steps

Past Performance

How has Cabot performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBT has a large one-off loss of $78.0M impacting its June 30 2020 financial results.

Growing Profit Margin: CBT's current net profit margins (2.3%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: CBT has become profitable over the past 5 years, growing earnings by 37.5% per year.

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 (-70%) over the past year, making it difficult to compare to the Chemicals industry average (-18.6%).


Return on Equity

High ROE: CBT's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Cabot's financial position?


Financial Position Analysis

Short Term Liabilities: CBT's short term assets ($983.0M) exceed its short term liabilities ($494.0M).

Long Term Liabilities: CBT's short term assets ($983.0M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: CBT's debt to equity ratio (110.5%) is considered high.

Reducing Debt: CBT's debt to equity ratio has increased from 84% to 110.5% over the past 5 years.

Debt Coverage: CBT's debt is well covered by operating cash flow (41.2%).

Interest Coverage: CBT's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBT's dividend (3.53%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: CBT's dividend (3.53%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 high payout ratio (122.6%), CBT's dividend payments are not 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 (39.2% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Sean Keohane (53 yo)

4.58yrs

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 ($USD6.68M) is above average for companies of similar size in the US market ($USD4.43M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sean Keohane
President4.58yrsUS$6.68m0.17%
$ 3.8m
Erica McLaughlin
Senior VP & CFO2.42yrsUS$1.57m0.014%
$ 308.3k
Karen Kalita
Senior VP & General Counsel1.75yrsUS$1.32m0.0052%
$ 115.2k
Hobart Kalkstein
Senior VP4.5yrsUS$1.58m0.080%
$ 1.8m
Lisa Dumont
Controller & Principal Accounting Officer0.75yrno data0.011%
$ 245.8k
Patricia Hubbard
Senior VP & CTO2.67yrsno datano data
Steven Delahunt
VP of Investor Relations & Treasurer4.25yrsno datano data
Vanessa Craigie
Corporate Communications Directorno datano datano data
Arthur Wood
Senior VP & Chief Human Resources Officer3.5yrsno datano data
Martin O'Neill
Senior VP of Safety3.25yrsno datano data
Jeff Zhu
Senior VP8.5yrsno data0.10%
$ 2.3m
Aled Rees
Senior VP & President of Formulated Solutions and President of The EMEA Region2yrsno datano data

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: CBT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Keohane
President4.58yrsUS$6.68m0.17%
$ 3.8m
Douglas Del Grosso
Director0.50yrno datano data
Mark Wrighton
Independent Director23.75yrsUS$215.50k0.083%
$ 1.9m
Matthias Wolfgruber
Independent Director6.08yrsUS$219.96kno data
Juan Enriquez
Independent Director15.58yrsUS$212.04k0.0037%
$ 83.2k
Cynthia Arnold
Independent Director2.75yrsUS$207.99k0.012%
$ 273.4k
William Kirby
Independent Director8.25yrsUS$217.21kno data
Sue Rataj
Independent Non-Executive Chairman2.58yrsUS$320.49k0.033%
$ 746.0k
Frank Wilson
Independent Director2.08yrsUS$210.25kno data
Christine Yan
Independent Director1.42yrsUS$114.63kno data
Michael Morrow
Independent Director3.08yrsUS$229.28k0.0035%
$ 79.2k

3.1yrs

Average Tenure

63yo

Average Age

Experienced Board: CBT's board of directors are considered experienced (3.1 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 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$2.237b
  • Shares outstanding: 56.46m
  • Website: https://www.cabotcorp.com

Number of Employees


Location

  • Cabot Corporation
  • Two Seaport Lane
  • Suite 1300
  • Boston
  • Massachusetts
  • 02210-2019
  • United States

Listings

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 23:41
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.