Cabot Corp (NYSE: CBT)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0000016040
Market Cap 4.67 Bn
P/B 2.54
P/E 12.91
P/S 1.40
ROIC (Qtr) 9.27
Div Yield % 1.68
Rev 1y % (Qtr) -10.19
Total Debt (Qtr) 1.13 Bn
Debt/Equity (Qtr) 0.73

About

Cabot Corporation, a global specialty chemicals and performance materials company, operates under the ticker symbol CBT. The company's main business activities involve the design, manufacture, and sale of reinforcing and specialty carbons, specialty compounds, conductive additives, carbon nanotubes, fumed metal oxides, inkjet colorants, and aerogel. These products are used in a wide range of applications, including tires, industrial products, automotive, construction, infrastructure, inkjet printing, electronics, and consumer products. Cabot's...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 665M provides robust 0.59x coverage of total debt 1.13B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 3.63B provides 3.21x coverage of total debt 1.13B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 665M provides strong 27.71x coverage of stock compensation 24M, indicating sustainable incentive practices.
  • Strong operating cash flow of 665M provides 2.56x coverage of SG&A expenses 260M, showing efficient operational cost management.
  • Retained earnings of 1.83B provide full 2.14x coverage of long-term debt 856M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 665M barely covers its investment activities of (298M), with a coverage ratio of -2.23, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (298M) provide weak support for R&D spending of 59M, which is -5.05x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 665M provides thin coverage of dividend payments of (96M) with a -6.93 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 258M provide limited coverage of acquisition spending of (27M), which is -9.56x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 391M represents just -17x of debt issuance (23M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 218.63 Bn 38.41 6.61 25.93 Bn
2 SHW Sherwin Williams Co 110.34 Bn 170.54 11.54 13.58 Bn
3 ECL Ecolab Inc. 80.35 Bn 80.18 5.93 8.67 Bn
4 APD Air Products & Chemicals, Inc. 56.37 Bn 48.29 5.86 18.31 Bn
5 PPG Ppg Industries Inc 34.00 Bn 31.05 2.58 7.91 Bn
6 LYB LyondellBasell Industries N.V. 17.46 Bn 5.03 0.49 13.22 Bn
7 DD DuPont de Nemours, Inc. 16.63 Bn 3.65 0.32 8.90 Bn
8 ALB Albemarle Corp 14.44 Bn 48.94 6.36 3.63 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.57 1.52
EV to Cash from Ops. EV/CFO 17.36 12.52
EV to Debt EV to Debt 5.28 13.65
EV to EBIT EV/EBIT 12.65 21.45
EV to EBITDA EV/EBITDA 13.21 14.82
EV to Free Cash Flow [EV/FCF] EV/FCF 93.30 29.24
EV to Market Cap EV to Market Cap 1.28 3.84
EV to Revenue EV/Rev 1.78 89.11
Price to Book Value [P/B] P/B 2.54 5.48
Price to Earnings [P/E] P/E 12.91 16.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.45 -5.31
Dividend Payout Ratio % Div Payout % (Qtr) 29.00 -75.74
Dividend per Basic Share Div per Share (Qtr) 1.76 1.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 24.17 23.50
Interest Coverage Int. cover (Qtr) 7.93 -8.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -13.69 -1.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 15.70 72.99
Dividend Growth (1y) % Div 1y % (Qtr) 6.02 -3.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.45 -31.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.31 51.49
EBIT Growth (1y) % EBIT 1y % (Qtr) 5.42 0.57
EBT Growth (1y) % EBT 1y % (Qtr) 7.33 -80.35
EPS Growth (1y) % EPS 1y % (Qtr) -10.60 -90.82
FCF Growth (1y) % FCF 1y % (Qtr) -13.30 -50.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.08 219.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.97 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.10 0.41
Cash Ratio Cash Ratio (Qtr) 0.27 1.28
Current Ratio Curr Ratio (Qtr) 1.61 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.73 0.92
Interest Cover Ratio Int Coverage (Qtr) 7.93 -8.92
Times Interest Earned Times Interest Earned (Qtr) 7.93 -8.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.40 -333.97
EBIT Margin % EBIT Margin % (Qtr) 16.24 -374.34
EBT Margin % EBT Margin % (Qtr) 14.19 -379.75
Gross Margin % Gross Margin % (Qtr) 25.30 29.26
Net Profit Margin % Net Margin % (Qtr) 8.90 -380.67