CABOT CORP (CBT) Fundamental Analysis & Valuation
NYSE:CBT • US1270551013
70.02 USD
-4 (-5.4%)
At close: Mar 6, 2026
71.41 USD
+1.39 (+1.99%)
After Hours: 3/6/2026, 8:04:45 PM
This CBT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, CBT scores 7 out of 10 in our fundamental rating. CBT was compared to 83 industry peers in the Chemicals industry. CBT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CBT is valued quite cheap, but it does not seem to be growing. With these ratings, CBT could be worth investigating further for value investing!.
1. CBT Profitability Analysis
1.1 Basic Checks
- CBT had positive earnings in the past year.
- CBT had a positive operating cash flow in the past year.
- CBT had positive earnings in each of the past 5 years.
- CBT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 8.14%, CBT belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
- CBT has a better Return On Equity (19.43%) than 91.57% of its industry peers.
- CBT's Return On Invested Capital of 14.83% is amongst the best of the industry. CBT outperforms 97.59% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CBT is significantly above the industry average of 6.36%.
- The last Return On Invested Capital (14.83%) for CBT is above the 3 year average (14.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.14% | ||
| ROE | 19.43% | ||
| ROIC | 14.83% |
ROA(3y)10.23%
ROA(5y)8.8%
ROE(3y)27.28%
ROE(5y)26.17%
ROIC(3y)14.41%
ROIC(5y)14.64%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.48%, CBT belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
- CBT's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 16.50%, CBT belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
- CBT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 25.40%, CBT is in line with its industry, outperforming 46.99% of the companies in the same industry.
- CBT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.5% | ||
| PM (TTM) | 8.48% | ||
| GM | 25.4% |
OM growth 3Y8.11%
OM growth 5Y14.72%
PM growth 3Y22.58%
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y5.51%
2. CBT Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CBT is creating some value.
- The number of shares outstanding for CBT has been reduced compared to 1 year ago.
- Compared to 5 years ago, CBT has less shares outstanding
- Compared to 1 year ago, CBT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.42 indicates that CBT is not in any danger for bankruptcy at the moment.
- CBT has a better Altman-Z score (3.42) than 84.34% of its industry peers.
- CBT has a debt to FCF ratio of 2.81. This is a good value and a sign of high solvency as CBT would need 2.81 years to pay back of all of its debts.
- CBT has a Debt to FCF ratio of 2.81. This is amongst the best in the industry. CBT outperforms 89.16% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that CBT is somewhat dependend on debt financing.
- CBT's Debt to Equity ratio of 0.55 is fine compared to the rest of the industry. CBT outperforms 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.12
WACC13.19%
2.3 Liquidity
- A Current Ratio of 1.67 indicates that CBT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.67, CBT is doing worse than 65.06% of the companies in the same industry.
- A Quick Ratio of 1.09 indicates that CBT should not have too much problems paying its short term obligations.
- CBT has a Quick ratio of 1.09. This is comparable to the rest of the industry: CBT outperforms 42.17% of its industry peers.
- CBT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.09 |
3. CBT Growth Analysis
3.1 Past
- CBT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
- The Earnings Per Share has been growing by 28.53% on average over the past years. This is a very strong growth
- The Revenue has decreased by -9.62% in the past year.
- Measured over the past years, CBT shows a small growth in Revenue. The Revenue has been growing by 7.27% on average per year.
EPS 1Y (TTM)-3.17%
EPS 3Y5.06%
EPS 5Y28.53%
EPS Q2Q%-13.07%
Revenue 1Y (TTM)-9.62%
Revenue growth 3Y-4.93%
Revenue growth 5Y7.27%
Sales Q2Q%-11.1%
3.2 Future
- The Earnings Per Share is expected to grow by 4.89% on average over the next years.
- CBT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
EPS Next Y-10.14%
EPS Next 2Y-0.26%
EPS Next 3Y2.54%
EPS Next 5Y4.89%
Revenue Next Year-5.41%
Revenue Next 2Y-1.55%
Revenue Next 3Y0.05%
Revenue Next 5Y1.96%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. CBT Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.96, the valuation of CBT can be described as reasonable.
- 93.98% of the companies in the same industry are more expensive than CBT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, CBT is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.69 indicates a reasonable valuation of CBT.
- Based on the Price/Forward Earnings ratio, CBT is valued cheaply inside the industry as 87.95% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.57. CBT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CBT is valued cheaper than 87.95% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CBT is valued cheaper than 90.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
- The excellent profitability rating of CBT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-0.26%
EPS Next 3Y2.54%
5. CBT Dividend Analysis
5.1 Amount
- CBT has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
- CBT's Dividend Yield is a higher than the industry average which is at 2.19.
- Compared to an average S&P500 Dividend Yield of 1.82, CBT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
- The dividend of CBT has a limited annual growth rate of 4.94%.
- CBT has paid a dividend for at least 10 years, which is a reliable track record.
- CBT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.94%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
- 31.37% of the earnings are spent on dividend by CBT. This is a low number and sustainable payout ratio.
- CBT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.37%
EPS Next 2Y-0.26%
EPS Next 3Y2.54%
CBT Fundamentals: All Metrics, Ratios and Statistics
70.02
-4 (-5.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners99.5%
Inst Owner Change0.3%
Ins Owners1.26%
Ins Owner Change5.46%
Market Cap3.66B
Revenue(TTM)3.61B
Net Income(TTM)306.00M
Analysts73.33
Price Target78.03 (11.44%)
Short Float %5.09%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend1.79
Dividend Growth(5Y)4.94%
DP31.37%
Div Incr Years13
Div Non Decr Years34
Ex-Date02-27 2026-02-27 (0.45)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.8%
Min EPS beat(2)0.03%
Max EPS beat(2)7.57%
EPS beat(4)4
Avg EPS beat(4)3.06%
Min EPS beat(4)0.03%
Max EPS beat(4)7.57%
EPS beat(8)7
Avg EPS beat(8)3.45%
EPS beat(12)10
Avg EPS beat(12)2.77%
EPS beat(16)14
Avg EPS beat(16)4.17%
Revenue beat(2)0
Avg Revenue beat(2)-6.3%
Min Revenue beat(2)-7.35%
Max Revenue beat(2)-5.24%
Revenue beat(4)0
Avg Revenue beat(4)-6.6%
Min Revenue beat(4)-9.48%
Max Revenue beat(4)-4.31%
Revenue beat(8)1
Avg Revenue beat(8)-4.54%
Revenue beat(12)1
Avg Revenue beat(12)-5.03%
Revenue beat(16)5
Avg Revenue beat(16)-1.91%
PT rev (1m)8.05%
PT rev (3m)8.9%
EPS NQ rev (1m)-9.83%
EPS NQ rev (3m)-12.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.39%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-8.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 9.69 | ||
| P/S | 1.01 | ||
| P/FCF | 9.12 | ||
| P/OCF | 5.48 | ||
| P/B | 2.32 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)7.03
EY10.04%
EPS(NY)7.22
Fwd EY10.31%
FCF(TTM)7.68
FCFY10.97%
OCF(TTM)12.77
OCFY18.24%
SpS69.07
BVpS30.16
TBVpS26.52
PEG (NY)N/A
PEG (5Y)0.35
Graham Number69.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.14% | ||
| ROE | 19.43% | ||
| ROCE | 20.64% | ||
| ROIC | 14.83% | ||
| ROICexc | 16.11% | ||
| ROICexgc | 17.35% | ||
| OM | 16.5% | ||
| PM (TTM) | 8.48% | ||
| GM | 25.4% | ||
| FCFM | 11.12% |
ROA(3y)10.23%
ROA(5y)8.8%
ROE(3y)27.28%
ROE(5y)26.17%
ROIC(3y)14.41%
ROIC(5y)14.64%
ROICexc(3y)15.7%
ROICexc(5y)15.9%
ROICexgc(3y)16.88%
ROICexgc(5y)17.3%
ROCE(3y)20.49%
ROCE(5y)21.33%
ROICexgc growth 3Y1.98%
ROICexgc growth 5Y16.93%
ROICexc growth 3Y2.08%
ROICexc growth 5Y17.96%
OM growth 3Y8.11%
OM growth 5Y14.72%
PM growth 3Y22.58%
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y5.51%
F-Score6
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.81 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 168.35% | ||
| Cap/Sales | 7.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.58% | ||
| Profit Quality | 131.05% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.42 |
F-Score6
WACC13.19%
ROIC/WACC1.12
Cap/Depr(3y)168.99%
Cap/Depr(5y)154.67%
Cap/Sales(3y)6.54%
Cap/Sales(5y)6.04%
Profit Quality(3y)106.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.17%
EPS 3Y5.06%
EPS 5Y28.53%
EPS Q2Q%-13.07%
EPS Next Y-10.14%
EPS Next 2Y-0.26%
EPS Next 3Y2.54%
EPS Next 5Y4.89%
Revenue 1Y (TTM)-9.62%
Revenue growth 3Y-4.93%
Revenue growth 5Y7.27%
Sales Q2Q%-11.1%
Revenue Next Year-5.41%
Revenue Next 2Y-1.55%
Revenue Next 3Y0.05%
Revenue Next 5Y1.96%
EBIT growth 1Y-6%
EBIT growth 3Y2.78%
EBIT growth 5Y23.06%
EBIT Next Year8.49%
EBIT Next 3Y6.5%
EBIT Next 5YN/A
FCF growth 1Y4.16%
FCF growth 3YN/A
FCF growth 5Y17.18%
OCF growth 1Y2.93%
OCF growth 3Y88.05%
OCF growth 5Y12.02%
CABOT CORP / CBT FAQ
What is the ChartMill fundamental rating of CABOT CORP (CBT) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CBT.
What is the valuation status of CABOT CORP (CBT) stock?
ChartMill assigns a valuation rating of 8 / 10 to CABOT CORP (CBT). This can be considered as Undervalued.
Can you provide the profitability details for CABOT CORP?
CABOT CORP (CBT) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for CBT stock?
The Price/Earnings (PE) ratio for CABOT CORP (CBT) is 9.96 and the Price/Book (PB) ratio is 2.32.
How financially healthy is CABOT CORP?
The financial health rating of CABOT CORP (CBT) is 8 / 10.