NYSE:CBT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

2.4%

NYSE:CBT

2.1%

US Chemicals

2.9%

US Market


1 Year Return

-41.3%

NYSE:CBT

-15.1%

US Chemicals

0.2%

US Market

CBT underperformed the Chemicals industry which returned -16.1% over the past year.

CBT underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

CBTIndustryMarket
7 Day2.4%2.1%2.9%
30 Day-13.5%-4.8%-2.3%
90 Day-6.1%-0.4%3.1%
1 Year-39.7%-41.3%-1.7%-15.1%2.4%0.2%
3 Year-16.5%-21.8%34.8%10.0%41.7%32.4%
5 Year-20.4%-28.7%31.1%2.4%55.1%37.9%

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

10.63x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cabot's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cabot's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Cabot is good value based on expected growth next year.


Price Based on Value of Assets

Cabot is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

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

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cabot's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Cabot's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

Cabot's revenue growth is positive but not above the United States of America market average.

Cabot's earnings growth is expected to exceed the United States of America market average.

Cabot's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cabot is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Cabot performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Cabot has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Cabot used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Cabot has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cabot's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Cabot's level of debt (90.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (54% vs 90.2% today).

Debt is well covered by operating cash flow (29%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

3.61%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Cabot's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Cabot's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

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

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Sean Keohane (52yo)

3.4yrs

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

Sean's remuneration is higher than average for companies of similar size in United States of America.

Sean's compensation has increased in line with Cabot recently becoming profitable.


Management Age and Tenure

2.7yrs

Average Tenure

50.5yo

Average Age

The tenure for the Cabot management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

63.5yo

Average Age

The tenure for the Cabot board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Patrick Prevost (64yo)

    Advisor & Director

    • Tenure: 11.6yrs
    • Compensation: US$194.45k
  • Martin O'Neill

    Senior VP of Safety

    • Tenure: 2.1yrs
  • Sean Keohane (52yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$6.78m
  • Steven Delahunt

    VP of Investor Relations & Treasurer

    • Tenure: 3.1yrs
  • Erica McLaughlin (43yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.24m
  • Jeff Zhu

    Senior VP & President of Asia Pacific Region

    • Tenure: 7.3yrs
  • Bart Kalkstein (49yo)

    Senior VP

    • Tenure: 3.3yrs
    • Compensation: US$1.71m
  • Art Wood

    Senior VP & Chief Human Resources Officer

    • Tenure: 2.3yrs
  • Patricia Hubbard

    Senior VP & CTO

    • Tenure: 1.5yrs
  • Karen Kalita

    Senior VP & General Counsel

    • Tenure: 0.6yrs

Board Members

  • John O'Brien (75yo)

    Independent Non-Executive Director

    • Tenure: 29.6yrs
    • Compensation: US$249.56k
  • Mark Wrighton (69yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: US$208.37k
  • Matthias Wolfgruber (65yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$209.17k
  • Patrick Prevost (64yo)

    Advisor & Director

    • Tenure: 11.6yrs
    • Compensation: US$194.45k
  • Juan Enriquez (59yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$209.88k
  • Sean Keohane (52yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$6.78m
  • Cynthia Arnold (62yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$178.51k
  • Bill Kirby (68yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$218.37k
  • Sue Rataj (62yo)

    Non-Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: US$267.09k
  • Mike Morrow (63yo)

    Independent Director

    • Tenure: 1.9yrs
    • 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$2.233b
  • Shares outstanding: 57.78m
  • 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 Analysis2019/08/21 23:33
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.