Cabot Corp. (CBT)
Valuation Overview•Is Cabot Corp. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 53/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
CBT demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-4.9% 3Y CAGR) paired with robust earnings compounding (18.5% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 13.8%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $982.0M | -7.0% | -4.9% | +7.3% | +2.6% | |
| EBITDA | $148.0M | — | +13.1% | — | — | |
| Net Income | $6.0M | -12.9% | +16.6% | — | — | |
| EPS (Diluted) | $0.12 | -10.4% | +18.5% | — | — | |
| Free Cash Flow | $37.0M | -13.3% | — | +17.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 22.9% | 23.6% | 22.9% | 22.6% |
| Operating Margin | 13.8% | 15.2% | 13.6% | 10.5% |
| Net Margin | 5.2% | 9.9% | 8.4% | 4.9% |
| FCF Margin | 7.7% | 10.3% | 6.0% | 6.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $1.65 | $1.67 | +1.2% | ||
| Q2'26 | $1.47 | $1.61 | +9.5% | ||
| Q1'26 | $1.40 | $1.53 | +9.3% | ||
| Q4'25 | $1.72 | $1.70 | -1.2% | ||
| Q3'25 | $1.80 | $1.90 | +5.6% | ||
| Q2'25 | $1.86 | $1.90 | +2.2% | ||
| Q1'25 | $1.74 | $1.76 | +1.1% | ||
| Q4'24 | $1.82 | $1.80 | -1.1% |
Total return is +6.6% (1Y), lagging the benchmark by -9.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +20.6% | +7.4% | — |
| 1Y | +6.6% | -9.3% | +2.4% |
| 3YCAGR | +8.1% | -14.7% | +7.9% |
| 5YCAGR | +12.6% | 0.0% | +17.1% |
| 10YCAGR | +6.1% | -7.6% | — |
The S&P 500 is at 31.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Cabot Corp. (CBT) valuation, health, and returns.
Cabot Corp. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $82.13)
Cabot Corp. has multiple valuation anchors: DCF Intrinsic Value: $82.13 | Peer Relative Fair Value: $137.96 | Wall Street Analyst Target: $94.00 (implying +18.3% upside). A convergence of these signals offers higher conviction.
Cabot Corp. displays fair financial health with a composite quality score of 53/100, supported by a Altman Z-Score of 3.2 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 17.4%.
Cabot Corp. pays a 2.2% dividend yield, covered by a 29% payout ratio with 14 years of growth, supplemented by a 4.1% buyback yield.
Cabot Corp.'s current growth trajectory is Decelerating. The company achieved -7.0% 1Y revenue growth and -10.4% 1Y EPS growth, compared to its 3Y revenue CAGR of -4.9%.
Wall Street consensus is Buy based on 15 analysts, beating EPS expectations in 83% of recent quarters with a 3-quarter streak. The consensus price target represents a +18.3% change from current levels.
Investment risks for Cabot Corp. include: -24.8% 1-year max drawdown. Volatility risk is characterized by a beta of 0.59x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.