Cabot Corporation

Valuation Analysis

About the Company

Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through two segments, Reinforcement Materials and Performance Chemicals. The company offers reinforcing carbons that are 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 engineered elastomer composites solutions. It also provides specialty carbons for use in inks, coatings, plastics, adhesives, toners, batteries, and displays; conductive additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceutical

Cabot Corporation Stock at a Glance

Cabot Corporation (CBT) is currently trading at $87.65 with a market capitalization of $4.5B. The trailing P/E ratio stands at 16.54x, with a forward P/E of 12.52x. The 52-week range spans from $58.33 to $89.46; the current price is 2% below the yearly high. Year-over-year revenue growth stands at -3.4%. The net profit margin stands at 7.97%.

💰 Dividend

Cabot Corporation pays an annual dividend of $1.82 per share, representing a yield of 2.08%. The payout ratio stands at 33.96%.

📊 Analyst Rating

6 analysts rate Cabot Corporation (CBT) on consensus: Buy. The average price target is $85.67, implying -2.26% from the current price. Analyst price targets range from $70.00 to $98.00.

Cabot Corporation: The Investment Case in Detail

Cabot Corporation (CBT) operates in the Basic Materials — specifically Specialty Chemicals — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -3.4% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valuation in Context

The PEG ratio at 1 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 7.57x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 12.52x is meaningfully below the trailing 16.54x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 94.2% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (9.55%).

Trading Data

💵 Dividend Info

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