Cabot Corporation (CBT) AI Stock Analysis

Cabot Corporation, headquartered in Boston, Massachusetts, operates as a leading provider of specialty chemicals and performance materials across two primary segments: Reinforcement Materials and Performance Chemicals. The Reinforcement Materials segment produces reinforcing carbons used to enhance the durability of tires and industrial products like hoses and belts. Performance Chemicals supplies specialty carbons for inks, coatings, plastics, and adhesives, as well as conductive carbon additives and fumed alumina for lead acid and lithium-ion battery technologies. Cabot also manufactures fumed silica and aerogels for thermal insulation, distributing products across the Americas, Europe, Middle East, Africa, and Asia Pacific.

Cabot generated a 5-year revenue CAGR of 7.3% from FY2020 to FY2025, though annual revenue contracted 7.0% in FY2025 to $3.71B following $3.99B in FY2024. Despite the revenue decline, gross margin improved to 25.3% and operating margin expanded to 16.7% in FY2025, lifting EPS to $7.26. Across the trailing twelve months, revenue stood at $3.63B with a net profit margin of 5.2% and EPS of $3.57. For the latest quarter ended June 30, 2026, revenue increased 6.4% year-over-year, while quarterly earnings contracted 93.7%.

As of June 30, 2026, Cabot held $250.0M in cash and short-term investments against $1.27B in total debt, resulting in net debt of $1.02B. The company maintained a current ratio of 1.47 and a debt-to-equity ratio of 0.79 on shareholders' equity of $1.60B. In FY2025, operating cash flow was $665.0M, funding $274.0M in capital expenditures to generate $391.0M in free cash flow. Capital allocation that year included $168.0M for share buybacks and $96.0M for dividends paid, contributing to an 8.5% share count reduction over five years.

At a share price of $74.29, Cabot trades at a trailing P/E of 20.8x and a forward P/E of 9.9x, compared to the median of its US-listed Basic Materials peers of 19.7x trailing and 13.4x forward. Its enterprise value to EBITDA sits at 7.6x, below the peer median of 10.5x, while price-to-sales of 1.1x compares to the peer median of 1.8x. Over the past year, Cabot rose 10.1%, trailing the S&P 500 (SPY) gain of 16.8%, and over five years its return of 55.5% lagged SPY's 83.0%.

Cabot pays a quarterly dividend with an annual forward payout of $1.85 per share, yielding 2.48%. The payout ratio stands at 28.4%, supported by 43 consecutive years of dividend payments. Over the past five years, dividend growth averaged 4.9% annualized, with the last ex-dividend date on August 28, 2026.

Wall Street coverage includes 2 Strong Buy, 0 Buy, 3 Hold, and 1 Sell recommendations. The mean price target of $90.33 represents a 21.6% premium over the last close of $74.29. For the fiscal year ending September 30, 2026, analysts estimate revenue of $3.69B and EPS of $6.37, representing a 12.2% EPS decline. For the next fiscal year, 6 analysts project revenue growth of 3.2% to $3.80B and EPS growth of 9.7% to $6.99. Cabot beat EPS estimates in each of the last 4 quarters, with the next earnings release scheduled for November 2, 2026.

This page is an AI-written research summary of Cabot Corporation (CBT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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