📊 CBT Key Takeaways
Is Cabot Corp. (CBT) a Good Investment?
Cabot Corp demonstrates financial stability with positive operating cash flow and manageable debt, but faces headwinds from 7% revenue decline and weak returns on invested capital (ROE 9%, ROA 3.6%). The company's ability to grow net income despite declining revenue suggests cost discipline, yet margin improvements are insufficient to offset shareholder dilution reflected in 10.4% EPS decline.
Cabot shows solid underlying profitability with healthy gross, operating, and net margins, supported by positive free cash flow and manageable leverage. However, the 7.0% revenue decline, modest ROE/ROA, and weaker diluted EPS indicate that earnings quality is not strong enough to fully offset slowing top-line momentum. The fundamentals support financial stability, but growth quality looks mixed rather than clearly accelerating.
Cabot Corp. Key Strengths (CBT)
- Strong operating cash flow of $203M with healthy 7.2x interest coverage ratio indicating low financial distress risk
- Moderate leverage with 0.55x debt-to-equity ratio and adequate current ratio of 1.45x suggests financial stability
- Net margin of 8% and operating margin of 14.7% demonstrate sustainable profitability in chemicals sector despite revenue pressure
- Solid profitability profile with 24.9% gross margin, 15.2% operating margin, and 8.6% net margin
- Healthy balance sheet and liquidity, with a 1.67x current ratio and moderate 0.54x debt-to-equity
- Positive free cash flow generation of $57.00M and interest coverage of 7.2x support financial flexibility
CBT Stock Risks: Cabot Corp. Investment Risks
- Revenue declining 7% YoY indicates loss of market share or demand headwinds in chemical products sector
- Historically low returns on capital (ROE 9%, ROA 3.6%) suggest inefficient capital allocation relative to equity base
- Quick ratio of 0.96x below 1.0 combined with $863M long-term debt creates potential liquidity constraints during downturns
- Revenue declined 7.0% year over year, signaling demand or pricing pressure
- Diluted EPS fell 10.4% despite slightly higher net income, pointing to weaker per-share earnings quality
- Low ROE of 4.6% and ROA of 1.9% suggest limited efficiency in converting capital into returns
Key Metrics to Watch
- Revenue stabilization and return to growth trajectory
- Return on equity improvement toward 12-15% range to demonstrate effective capital deployment
- Free cash flow margin expansion from current 5.1% to increase shareholder value creation
- Revenue growth and segment volume recovery
- Free cash flow conversion and return on equity improvement
Cabot Corp. (CBT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Cabot Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CBT Profit Margin, ROE & Profitability Analysis
CBT vs Materials Sector: How Cabot Corp. Compares
How Cabot Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cabot Corp. Stock Overvalued? CBT Valuation Analysis 2026
Based on fundamental analysis, Cabot Corp. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cabot Corp. Balance Sheet: CBT Debt, Cash & Liquidity
CBT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cabot Corp.'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.73 reflects profitable operations.
CBT Revenue Growth, EPS Growth & YoY Performance
CBT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $904.0M | $68.0M | $1.27 |
| Q1 2026 | $849.0M | $73.0M | $1.37 |
| Q3 2025 | $923.0M | $101.0M | $1.86 |
| Q2 2025 | $936.0M | $84.0M | $1.49 |
| Q1 2025 | $955.0M | $50.0M | $0.88 |
| Q3 2024 | $968.0M | $82.0M | $1.43 |
| Q2 2024 | $1.0B | $75.0M | $1.29 |
| Q1 2024 | $958.0M | $50.0M | $0.88 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cabot Corp. Dividends, Buybacks & Capital Allocation
CBT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cabot Corp. (CIK: 0000016040)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CBT
What is the AI rating for CBT?
Cabot Corp. (CBT) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CBT's key strengths?
Claude: Strong operating cash flow of $203M with healthy 7.2x interest coverage ratio indicating low financial distress risk. Moderate leverage with 0.55x debt-to-equity ratio and adequate current ratio of 1.45x suggests financial stability. ChatGPT: Solid profitability profile with 24.9% gross margin, 15.2% operating margin, and 8.6% net margin. Healthy balance sheet and liquidity, with a 1.67x current ratio and moderate 0.54x debt-to-equity.
What are the risks of investing in CBT?
Claude: Revenue declining 7% YoY indicates loss of market share or demand headwinds in chemical products sector. Historically low returns on capital (ROE 9%, ROA 3.6%) suggest inefficient capital allocation relative to equity base. ChatGPT: Revenue declined 7.0% year over year, signaling demand or pricing pressure. Diluted EPS fell 10.4% despite slightly higher net income, pointing to weaker per-share earnings quality.
What is CBT's revenue and growth?
Cabot Corp. reported revenue of $1.8B.
Does CBT pay dividends?
Cabot Corp. pays dividends, with $48.0M distributed to shareholders in the trailing twelve months.
Where can I find CBT SEC filings?
Official SEC filings for Cabot Corp. (CIK: 0000016040) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CBT's EPS?
Cabot Corp. has a diluted EPS of $2.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CBT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Cabot Corp. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CBT stock overvalued or undervalued?
Valuation metrics for CBT: ROE of 9.0% (sector avg: 14%), net margin of 8.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is CBT's AI grade for 2026?
Our dual AI analysis gives Cabot Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CBT's free cash flow?
Cabot Corp.'s operating cash flow is $203.0M, with capital expenditures of $114.0M. FCF margin is 5.1%.
How does CBT compare to other Materials stocks?
Vs Materials sector averages: Net margin 8.0% (avg: 10%), ROE 9.0% (avg: 14%), current ratio 1.45 (avg: 1.6).