A Business at a Glance
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CABOT CORP
CBT
$4.9B
Mkt Cap
$90.15
+1.17%
CABOT CORP (CBT) has a current P/E ratio of 15.8, compared to its historical median P/E of 13.6. The stock is currently considered Fair based on its historical valuation range.
CABOT CORP (CBT) has a 5-year average return on invested capital (ROIC) of 18.8%. This indicates strong capital allocation and a potential competitive advantage.
CABOT CORP (CBT) has a market capitalization of $4.6B. It is classified as a mid-cap stock.
Yes, CABOT CORP (CBT) pays a dividend with a trailing twelve-month yield of 2.09%. The company also returns capital through share buybacks, with a buyback yield of 3.87%.
Based on historical P/E analysis, CABOT CORP (CBT) appears fair. The current P/E of 15.8 is 16% above its historical median of 13.6. The estimated fair value CAGR (P/E method) is 45.3%.
CABOT CORP (CBT) operates in the Miscellaneous Chemical Products industry, within the Materials sector.
CABOT CORP (CBT) reported annual revenue of $3.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Cabot is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts, with manufacturing facilities and operations in the United States and over 20 other countries. The company operates two reportable segments: Reinforcement Materials and Performance Chemicals. Reinforcement Materials manufactures reinforcing carbons (carbon black products) used primarily in tires and industrial products such as hoses, belts, and molded goods to enhance physical properties including durability, rolling resistance, and conductivity; the segment also produces engineered elastomer composites (E2C) that improve abrasion resistance and reduce fatigue, and launched the EVOLVE Sustainable Solutions platform targeting renewable, recovered, and reduced-emission products. Performance Chemicals produces specialty compounds, conductive additives, carbon nanotubes, fumed metal oxides, inkjet colorants, and aerogel, with a strategic focus on battery materials (conductive additives and formulations for lithium-ion batteries serving electric vehicles and energy storage systems) and specialty carbons for applications including power distribution cables, semiconductors, and infrastructure. The company's competitive advantages rest on four core competencies: making and handling very fine particles, modifying particle surfaces to alter functionality, designing particles to impart specific properties, and combining particles with other ingredients to deliver formulated intermediates or composites. Demand for Reinforcement Materials is driven by tire and automotive production volumes, vehicle electrification trends, and regulatory requirements, while Performance Chemicals demand is supported by battery market growth, infrastructure development, digitalization, and consumer applications. The company generates revenue through a mix of contract and spot pricing arrangements across its global customer base, which includes tire manufacturers, automotive suppliers, battery producers, and industrial end-users.
【Battery materials scaling momentum】 Management expects the battery materials product line to continue delivering strong growth driven by electric vehicle adoption and rapid expansion of battery energy storage systems, with the lithium-ion battery market projected to grow at a compound annual growth rate of approximately 20% through 2030 and battery energy storage systems expected to grow at 26% through 2030. The company anticipates that pricing actions will offset higher input costs across both segments, maintaining stable margins despite elevated energy prices and macroeconomic uncertainty. In Reinforcement Materials, management expects improving EBIT in the third and fourth quarters of fiscal 2026 from new capacity in Indonesia and Mexico, along with cost reduction benefits, though demand remains subject to various scenarios depending on customer order patterns and potential supply chain disruptions. Performance Chemicals is expected to deliver GDP-plus growth over time through its diverse portfolio, with particular strength in battery materials, infrastructure applications, and semiconductor-related end markets, while the company maintains a disciplined capital allocation approach focused on high-confidence strategic growth areas and continued shareholder returns through dividends and share repurchases.
| Metric | Target | Period |
|---|---|---|
| Adjusted earnings per share | $6.00–$6.50 | FY2026 |
| Capital expenditures | $200 million–$230 million | FY2026 |
| Operating tax rate | 27%–29% | FY2026 |
| Battery Materials EBITDA | approximately $40 million | FY2026 |
| Cost reduction program savings | $30 million | FY2026 |
| Capacity rationalization annual cost benefit | approximately $22 million | Calendar 2027 (run rate) |
Adjusted earnings per share (FY2026): “we are reaffirming our Adjusted earnings per share guidance for the full year to be in the range of $6.00 to $6.50 per share”
Capital expenditures (FY2026): “we have reduced our capital expenditures to a range of $200 million-$230 million for the full year”
Operating tax rate (FY2026): “we continue to anticipate our operating tax rate for fiscal 2026 to be in the range of 27%-29%”
Battery Materials EBITDA (FY2026): “we expect to generate approximately $40 million of EBITDA in fiscal year 2026”
Cost reduction program savings (FY2026): “we've been executing programs targeting $30 million in savings during fiscal 2026, including procurement savings, headcount reductions in Reinforcement Materials and associated supporting functions, and accelerated deployment of process technology to improve yield and manufacturing efficiencies”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.6B | 3.7B | 4.0B | 3.9B | 4.3B | 3.4B |
| Net Income | 281M | 326M | 374M | 437M | 206M | 247M |
| EPS | $5.35 | $6.02 | $6.72 | $7.73 | $3.62 | $4.34 |
| Free Cash Flow | 432M | 391M | 451M | 351M | -111M | 62M |
| ROIC | 12.9% | 17.1% | 20.9% | 23.7% | 14.6% | 17.6% |
| Gross Margin | 24.8% | 25.3% | 24.0% | 21.3% | 20.5% | 23.4% |
| Debt/Equity | 0.83 | 0.73 | 0.80 | 1.01 | 1.61 | 1.23 |
| Dividends/Share | $1.88 | $1.76 | $1.66 | $1.54 | $1.48 | $1.40 |
| Operating Income | 562M | 621M | 614M | 526M | 389M | 454M |
| Operating Margin | 15.7% | 16.7% | 15.4% | 13.4% | 9.0% | 13.3% |
| ROE | 17.9% | 21.9% | 27.8% | 40.4% | 22.3% | 30.2% |
| Shares Outstanding | 52M | 54M | 56M | 57M | 57M | 57M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.6B | 2.9B | 2.4B | 2.7B | 3.2B | 3.3B | 2.6B | 3.4B | 4.3B | 3.9B | 4.0B | 3.7B | 3.6B |
| Gross Margin | 19.8% | 20.4% | 23.8% | 24.2% | 23.8% | 20.5% | 19.1% | 23.4% | 20.5% | 21.3% | 24.0% | 25.3% | 24.8% |
| R&D | 60M | 58M | 53M | 57M | 66M | 60M | 57M | 56M | 55M | 57M | 63M | 59M | 57M |
| SG&A | 326M | 282M | 275M | 262M | 308M | 290M | 292M | 289M | 258M | 253M | 283M | 260M | 266M |
| EBIT | 335M | -317M | 247M | 338M | 144M | 306M | 21M | 454M | 389M | 526M | 614M | 621M | 562M |
| Op. Margin | 9.2% | -11.0% | 10.2% | 12.4% | 4.4% | 9.2% | 0.8% | 13.3% | 9.0% | 13.4% | 15.4% | 16.7% | 15.7% |
| Net Income | 197M | -334M | 146M | 246M | -114M | 155M | -238M | 247M | 206M | 437M | 374M | 326M | 281M |
| Net Margin | 5.4% | -11.6% | 6.1% | 9.1% | -3.5% | 4.6% | -9.1% | 7.2% | 4.8% | 11.1% | 9.4% | 8.8% | 7.9% |
| Non-Recurring | 37M | 373M | 52M | 25M | 132M | 45M | 19M | 11M | 234M | 4.0M | 13M | 11M | 11M |
| Returns on Capital | |||||||||||||
| ROIC | 7.7% | -13.0% | 9.9% | 14.5% | 4.5% | 11.6% | 1.2% | 17.6% | 14.6% | 23.7% | 20.9% | 17.1% | 12.9% |
| ROE | 10.1% | -21.0% | 11.6% | 17.7% | -8.6% | 14.4% | -28.2% | 30.2% | 22.3% | 40.4% | 27.8% | 21.9% | 17.9% |
| ROA | 4.7% | -9.3% | 4.8% | 7.7% | -3.5% | 5.0% | -8.2% | 8.1% | 6.0% | 12.3% | 10.2% | 8.6% | 7.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 315M | 499M | 392M | 348M | 298M | 363M | 377M | 257M | 100M | 595M | 692M | 665M | 671M |
| Free Cash Flow | 144M | 358M | 280M | 201M | 69M | 139M | 177M | 62M | -111M | 351M | 451M | 391M | 432M |
| Owner Earnings | 100M | 304M | 214M | 177M | 127M | 204M | 210M | 76M | -69M | 431M | 516M | 487M | 485M |
| CapEx | 171M | 141M | 112M | 147M | 229M | 224M | 200M | 195M | 211M | 244M | 241M | 274M | 239M |
| Maint. CapEx | 201M | 183M | 161M | 155M | 149M | 148M | 158M | 160M | 146M | 144M | 151M | 154M | 169M |
| Growth CapEx | 0 | 0 | 0 | 0 | 80M | 76M | 42M | 35M | 65M | 100M | 90M | 120M | 70M |
| D&A | 201M | 183M | 161M | 155M | 149M | 148M | 158M | 160M | 146M | 144M | 151M | 154M | 169M |
| CapEx/OCF | 54.3% | 28.3% | 28.6% | 42.2% | 76.8% | 61.7% | 53.1% | 75.9% | 211.0% | 41.0% | 34.8% | 41.2% | 35.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 54M | 56M | 65M | 77M | 80M | 80M | 80M | 80M | 84M | 88M | 93M | 96M | 97M |
| Dividend Yield | 2.1% | 2.8% | 2.9% | 2.8% | 2.6% | 3.5% | 4.2% | 3.1% | 2.5% | 2.3% | 2.0% | 2.1% | 2.1% |
| Share Buybacks | 18M | 101M | 45M | 61M | 142M | 173M | 44M | 3.0M | 53M | 98M | 172M | 168M | 180M |
| Buyback Yield | 0.7% | 6.6% | 1.7% | 2.1% | 4.5% | 7.6% | 2.4% | 0.1% | 1.5% | 2.6% | 2.8% | 4.0% | 3.9% |
| Stock-Based Comp | 14M | 12M | 17M | 16M | 22M | 11M | 9.0M | 21M | 23M | 20M | 25M | 24M | 17M |
| Debt Repayment | 23M | 57M | 301M | 2.0M | 251M | 75M | 410M | 222M | 372M | 90M | 30M | 7.0M | 7.0M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.0B | 916M | 720M | 641M | 828M | 895M | 964M | 994M | 1.2B | 1.0B | 917M | 872M | 1.0B |
| Cash & Equiv. | 67M | 77M | 200M | 280M | 175M | 169M | 151M | 168M | 206M | 238M | 223M | 258M | 252M |
| Long-Term Debt | 1.0B | 970M | 914M | 661M | 719M | 1.0B | 1.1B | 717M | 1.1B | 1.1B | 1.1B | 856M | 863M |
| Debt/Equity | 0.55 | 0.80 | 0.72 | 0.61 | 0.87 | 1.07 | 1.61 | 1.23 | 1.61 | 1.01 | 0.80 | 0.73 | 0.83 |
| Interest Coverage | 6.1 | -6.0 | 4.6 | 6.4 | 2.7 | 5.2 | 0.4 | 9.3 | 6.9 | 5.8 | 7.6 | 8.2 | 7.5 |
| Equity | 1.9B | 1.2B | 1.3B | 1.5B | 1.2B | 998M | 691M | 947M | 898M | 1.3B | 1.4B | 1.6B | 1.6B |
| Total Assets | 4.1B | 3.1B | 3.1B | 3.3B | 3.2B | 3.0B | 2.8B | 3.3B | 3.5B | 3.6B | 3.7B | 3.8B | 3.9B |
| Total Liabilities | 2.1B | 1.8B | 1.8B | 1.8B | 2.1B | 2.0B | 2.1B | 2.4B | 2.6B | 2.3B | 2.3B | 2.3B | -51M |
| Intangibles | 347M | 153M | 140M | 137M | 98M | 96M | 103M | 100M | 63M | 60M | 53M | 55M | 53M |
| Retained Earnings | 1.9B | 1.5B | 1.5B | 1.7B | 1.4B | 1.3B | 989M | 1.2B | 1.3B | 1.6B | 1.7B | 1.8B | 1.8B |
| Working Capital | 734M | 607M | 650M | 557M | 434M | 611M | 449M | 278M | 715M | 804M | 833M | 582M | 479M |
| Current Assets | 1.4B | 1.0B | 1.0B | 1.3B | 1.4B | 1.2B | 978M | 1.4B | 1.8B | 1.6B | 1.6B | 1.5B | 1.5B |
| Current Liabilities | 630M | 441M | 397M | 742M | 952M | 599M | 529M | 1.1B | 1.1B | 822M | 772M | 957M | 1.1B |
| Per Share Data | |||||||||||||
| EPS | 3.03 | -5.27 | 2.32 | 3.91 | -1.85 | 2.63 | -4.21 | 4.34 | 3.62 | 7.73 | 6.72 | 6.02 | 5.35 |
| Owner EPS | 1.54 | 4.80 | 3.40 | 2.81 | 2.06 | 3.46 | 3.71 | 1.34 | -1.21 | 7.62 | 9.27 | 8.99 | 9.40 |
| Book Value | 29.87 | 19.47 | 20.24 | 23.91 | 18.73 | 16.93 | 12.22 | 16.64 | 15.78 | 22.36 | 25.60 | 28.62 | 30.40 |
| Cash Flow/Share | 4.84 | 7.87 | 6.23 | 5.53 | 4.84 | 6.16 | 6.67 | 4.52 | 1.76 | 10.52 | 12.43 | 12.28 | 8.72 |
| Dividends/Share | 0.84 | 0.88 | 1.04 | 1.23 | 1.29 | 1.36 | 1.40 | 1.40 | 1.48 | 1.54 | 1.66 | 1.76 | 1.88 |
| Shares Out. | 65.0M | 63.4M | 62.9M | 62.9M | 61.6M | 58.9M | 56.5M | 56.9M | 56.9M | 56.5M | 55.7M | 54.2M | 51.6M |
| Valuation | |||||||||||||
| P/E Ratio | 13.0 | N/A | 18.0 | 11.7 | N/A | 14.5 | N/A | 10.6 | 16.9 | 8.5 | 15.9 | 12.7 | 16.8 |
| P/FCF | 17.8 | 4.3 | 9.5 | 14.3 | 46.4 | 16.2 | 10.3 | 42.4 | N/A | 10.6 | 13.2 | 10.6 | 10.8 |
| EV/EBIT | 10.5 | N/A | 12.8 | 9.4 | 26.6 | 9.8 | 125.5 | 7.7 | 11.7 | 8.7 | 11.0 | 7.7 | 10.1 |
| Price/Book | 1.3 | 1.2 | 2.1 | 1.9 | 2.8 | 2.3 | 2.6 | 2.8 | 3.9 | 3.0 | 4.3 | 2.7 | 3.0 |
| Price/Sales | 0.7 | 0.7 | 0.9 | 1.0 | 1.0 | 0.7 | 0.7 | 0.8 | 0.8 | 1.0 | 1.2 | 1.3 | 1.3 |
| FCF Yield | 5.6% | 23.3% | 10.5% | 6.9% | 2.2% | 6.1% | 9.7% | 2.3% | -3.2% | 9.3% | 7.4% | 9.3% | 9.3% |
| Market Cap | 2.6B | 1.5B | 2.7B | 2.9B | 3.2B | 2.3B | 1.8B | 2.7B | 3.5B | 3.8B | 6.1B | 4.2B | 4.6B |
| Avg. Price | 40.04 | 31.95 | 35.03 | 43.43 | 50.54 | 38.41 | 33.86 | 45.57 | 59.71 | 66.98 | 84.49 | 84.94 | 90.15 |
| Year-End Price | 39.39 | 24.22 | 42.36 | 45.74 | 51.98 | 38.17 | 32.23 | 46.16 | 61.02 | 65.83 | 107.17 | 76.23 | 90.15 |
CABOT CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
CABOT CORP trades at 15.8x trailing earnings, compared to its 15-year median P/E of 13.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 11.7x vs a median of 13.2x. The company's 5-year average ROIC is 18.8% with a gross margin of 22.9%. Total shareholder yield (dividends + buybacks) is 6.0%. At current prices, the estimated annualized return to fair value is +26.4%.
CABOT CORP (CBT) has a net profit margin of 8.8%. This is a modest margin.
CABOT CORP (CBT) generated $391 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CABOT CORP (CBT) has a debt-to-equity ratio of 0.73. This indicates moderate leverage.
CABOT CORP (CBT) reported earnings per share (EPS) of $6.02 in its most recent fiscal year.
CABOT CORP (CBT) has a return on equity (ROE) of 21.9%. This indicates the company generates strong returns for shareholders.
CABOT CORP (CBT) has a 5-year average gross margin of 22.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for CABOT CORP (CBT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CABOT CORP (CBT) has a book value per share of $28.62, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the battery materials product line to continue delivering strong growth driven by electric vehicle adoption and rapid expansion of battery energy storage systems, with the lithium-ion battery market projected to grow at a compound annual growth rate of approximately 20% through 2030 and battery energy storage systems expected to grow at 26% through 2030. The company anticipates that pricing actions will offset higher input costs across both segments, maintaining stable margins despite elevated energy prices and macroeconomic uncertainty. In Reinforcement Materials, management expects improving EBIT in the third and fourth quarters of fiscal 2026 from new capacity in Indonesia and Mexico, along with cost reduction benefits, though demand remains subject to various scenarios depending on customer order patterns and potential supply chain disruptions. Performance Chemicals is expected to deliver GDP-plus growth over time through its diverse portfolio, with particular strength in battery materials, infrastructure applications, and semiconductor-related end markets, while the company maintains a disciplined capital allocation approach focused on high-confidence strategic growth areas and continued shareholder returns through dividends and share repurchases.
Based on recent SEC filings and earnings calls, CABOT CORP (CBT) has provided the following forward guidance: Adjusted earnings per share: $6.00–$6.50 (FY2026); Capital expenditures: $200 million–$230 million (FY2026); Operating tax rate: 27%–29% (FY2026); Battery Materials EBITDA: approximately $40 million (FY2026); Cost reduction program savings: $30 million (FY2026), plus 1 additional metric.
Capacity rationalization annual cost benefit (Calendar 2027 (run rate)): “The actions in total represent approximately 120,000 metric tons of capacity, targeting an annual run rate cost benefit of approximately $22 million with full delivery of cost-saving benefits targeted by the middle of calendar 2027”