NYSE:CBT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and good value.


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

-4.3%

CBT

-0.4%

US Chemicals

0.7%

US Market


1 Year Return

-2.6%

CBT

-2.6%

US Chemicals

13.7%

US Market

Return vs Industry: CBT matched the US Chemicals industry which returned -2.6% over the past year.

Return vs Market: CBT underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

CBTIndustryMarket
7 Day-4.3%-0.4%0.7%
30 Day9.8%6.0%4.7%
90 Day23.8%8.6%6.1%
1 Year0.5%-2.6%12.4%-2.6%16.2%13.7%
3 Year-0.08%-7.3%43.5%16.6%48.8%39.2%
5 Year15.8%2.7%43.5%11.3%62.5%44.5%

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?

7.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBT ($48.05) is trading below our estimate of fair value ($51.7)

Significantly Below Fair Value: CBT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CBT is good value based on its PE Ratio (18x) compared to the Chemicals industry average (20.2x).

PE vs Market: CBT is good value based on its PE Ratio (18x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CBT is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CBT is overvalued based on its PB Ratio (2.7x) 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 6 analysts?

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBT's forecast earnings growth (19.9% per year) is above the savings rate (2.7%).

Earnings vs Market: CBT's earnings (19.9% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: CBT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBT's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CBT's revenue (2.9% 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 high in 3 years time (23.1%)


Next Steps

Past Performance

How has Cabot performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBT has large one-off items impacting its financial results.

Growing Profit Margin: CBT's current net profit margins (4.7%) are higher than last year (-3.5%).


Past Earnings Growth Analysis

Earnings Trend: CBT's earnings have grown by 18.7% 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 (-20.3%).


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) exceeds 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 (33.9%).

Interest Coverage: CBT's interest payments on its debt are well covered by EBIT (7.7x 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

Dividend

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

2.91%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.6%industryaverage2.1%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: CBT's dividend (2.91%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: CBT's dividend (2.91%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 (50.9%), 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

Management

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

2.6yrs

Average management tenure


CEO

Sean Keohane (52yo)

3.7yrs

Tenure

US$6,775,442

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 ($USD6.78M) is above average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

2.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: CBT's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CBT's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Patrick Prevost (64yo)

    Advisor & Director

    • Tenure: 11.8yrs
    • Compensation: US$194.45k
  • Martin O'Neill

    Senior VP of Safety

    • Tenure: 2.3yrs
  • Sean Keohane (52yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$6.78m
  • Steven Delahunt

    VP of Investor Relations & Treasurer

    • Tenure: 3.3yrs
  • Erica McLaughlin (42yo)

    Senior VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$1.24m
  • Bart Kalkstein (49yo)

    Senior VP

    • Tenure: 3.6yrs
    • Compensation: US$1.71m
  • Art Wood

    Senior VP & Chief Human Resources Officer

    • Tenure: 2.6yrs
  • Patricia Hubbard

    Senior VP & CTO

    • Tenure: 1.8yrs
  • Karen Kalita

    Senior VP & General Counsel

    • Tenure: 0.8yrs
  • Vanessa Craigie

    Corporate Communications Director

    • Tenure: 0yrs

Board Members

  • John O'Brien (75yo)

    Independent Non-Executive Director

    • Tenure: 29.8yrs
    • Compensation: US$249.56k
  • Mark Wrighton (69yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$208.37k
  • Matthias Wolfgruber (65yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$209.17k
  • Patrick Prevost (64yo)

    Advisor & Director

    • Tenure: 11.8yrs
    • Compensation: US$194.45k
  • Juan Enriquez (59yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$209.88k
  • Sean Keohane (52yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$6.78m
  • Cynthia Arnold (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$178.51k
  • Bill Kirby (68yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$218.37k
  • Sue Rataj (62yo)

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: US$267.09k
  • Mike Morrow (63yo)

    Independent Director

    • Tenure: 2.2yrs
    • 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$2.743b
  • Shares outstanding: 57.08m
  • Website: https://www.cabotcorp.com

Number of Employees


Location

  • Cabot Corporation
  • Two Seaport Lane
  • Suite 1300
  • Boston
  • Massachusetts
  • 2210
  • 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 Analysis2019/11/17 23:33
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.