Stock Analysis Report

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Executive Summary

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

Snowflake Analysis

Established 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's share price has been volatile over 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 -4.5% over the past year.

Return vs Market: CBT underperformed the US Market which returned 5.3% over the past year.

Shareholder returns

7 Day1.8%2.2%1.5%
30 Day4.6%7.3%5.9%
90 Day30.0%25.8%17.9%
1 Year-15.4%-18.3%-0.2%-2.5%9.2%6.9%
3 Year-23.4%-29.6%17.3%-4.7%36.4%27.5%
5 Year19.4%4.7%43.1%11.0%64.9%47.0%

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?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: CBT ($37.83) is trading above our estimate of fair value ($22.61)

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 (21x) compared to the US Chemicals industry average (20.6x).

PE vs Market: CBT is poor value based on its PE Ratio (21x) compared to the US market (16.1x).

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 (2.3x) 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 6 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBT's forecast earnings growth (30.4% per year) is above the savings rate (2.2%).

Earnings vs Market: CBT's earnings (30.4% per year) are forecast to grow faster than the US market (22.5% per year).

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

Revenue vs Market: CBT's revenue (4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CBT's revenue (4% 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 (17.4%).

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 a large one-off loss of $76.0M impacting its March 31 2020 financial results.

Growing Profit Margin: CBT's current net profit margins (3.3%) are lower than last year (8.1%).

Past Earnings Growth Analysis

Earnings Trend: CBT's earnings have grown significantly by 32.1% per year over the past 5 years.

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 (-62.2%) over the past year, making it difficult to compare to the Chemicals industry average (-6.9%).

Return on Equity

High ROE: CBT's Return on Equity (12.5%) is considered low.

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 ($563.0M).

Long Term Liabilities: CBT's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).

Debt to Equity History and Analysis

Debt Level: CBT's debt to equity ratio (112.6%) is considered high.

Reducing Debt: CBT's debt to equity ratio has increased from 63.3% to 112.6% over the past 5 years.

Debt Coverage: CBT's debt is well covered by operating cash flow (37.9%).

Interest Coverage: CBT's interest payments on its debt are well covered by EBIT (6.8x coverage).

Balance Sheet

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CBT's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: CBT's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (4.59%).

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: At its current payout ratio (77.9%), CBT's 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 (43.1% payout ratio).

Next Steps


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


Average management tenure


Sean Keohane (53yo)





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 ($USD6.68M) is above average for companies of similar size in the US market ($USD4.72M).

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

Leadership Team

Sean Keohane
President4.33yrsUS$6.68m0.17% $3.7m
Erica McLaughlin
Senior VP & CFO2.17yrsUS$1.57m0.014% $294.3k
Karen Kalita
Senior VP & General Counsel1.5yrsUS$1.32m0.0052% $110.0k
Hobart Kalkstein
Senior VP4.25yrsUS$1.58m0.080% $1.7m
Lisa Dumont
Controller & Principal Accounting Officer0.50yrno data0.011% $234.7k
Patricia Hubbard
Senior VP & CTO2.42yrsno datano data
Steven Delahunt
VP of Investor Relations & Treasurer4yrsno datano data
Vanessa Craigie
Corporate Communications Directorno datano datano data
Arthur Wood
Senior VP & Chief Human Resources Officer3.25yrsno datano data
Martin O'Neill
Senior VP of Safety3yrsno datano data
Jeff Zhu
Senior VP8.25yrsno data0.10% $2.2m
Aled Rees
Senior VP & President of Formulated Solutions and President of The EMEA Region1.75yrsno datano data


Average Tenure


Average Age

Experienced Management: CBT's management team is considered experienced (3 years average tenure).

Board Members

Sean Keohane
President4.33yrsUS$6.68m0.17% $3.7m
Douglas Del Grosso
Director0.25yrno data0.0042% $89.3k
Mark Wrighton
Independent Director23.5yrsUS$215.50k0.083% $1.8m
Matthias Wolfgruber
Independent Director5.83yrsUS$219.96kno data
Juan Enriquez
Independent Director15.33yrsUS$212.04k0.0037% $79.4k
Cynthia Arnold
Independent Director2.5yrsUS$207.99k0.012% $261.2k
William Kirby
Independent Director8yrsUS$217.21kno data
Sue Rataj
Independent Non-Executive Chairman2.33yrsUS$320.49k0.033% $712.2k
Frank Wilson
Independent Director1.83yrsUS$210.25kno data
Christine Yan
Independent Director1.17yrsUS$114.63kno data
Michael Morrow
Independent Director2.83yrsUS$229.28k0.0035% $75.6k


Average Tenure


Average Age

Experienced Board: CBT's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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$2.136b
  • Shares outstanding: 56.45m
  • Website: https://www.cabotcorp.com

Number of Employees


  • Cabot Corporation
  • Two Seaport Lane
  • Suite 1300
  • Boston
  • Massachusetts
  • 02210-2019
  • 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 Analysis2020/07/14 23:54
End of Day Share Price2020/07/14 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.