📊 CBT Key Takeaways
Investment Thesis
Cabot Corp demonstrates solid financial health with strong liquidity (1.67x current ratio) and manageable leverage (0.54x D/E), but faces near-term headwinds from revenue decline (-7% YoY) and compressed EPS growth despite stable net income. The company's modest profitability margins (8.6% net, 15.2% operating) and weak returns on capital (ROA 1.9%, ROE 4.6%) suggest limited growth prospects without operational improvements.
CBT Strengths
- Strong liquidity position with 1.67x current ratio and $230M cash reserves
- Healthy interest coverage of 7.2x indicates low default risk and debt servicing capacity
- Conservative leverage at 0.54x debt-to-equity with long-term debt manageable relative to asset base
- Positive free cash flow generation of $57M despite capex investments
CBT Risks
- Revenue contraction of 7% YoY signals declining demand or market share loss in chemical products sector
- Diluted EPS down 10.4% YoY despite flat net income suggests share dilution and operational pressure
- Weak capital efficiency with ROE at 4.6% and ROA at 1.9% indicates poor returns on shareholder and asset deployment
- Modest free cash flow margin of 6.7% leaves limited cushion for unexpected challenges or growth investments
Key Metrics to Watch
- Revenue trajectory and organic growth rate recovery
- Operating margin sustainability and gross margin trends
- Free cash flow consistency and conversion rate from operating income
- Return on equity improvement and capital allocation efficiency
- Debt reduction pace relative to cash flow generation
CBT Financial Metrics
💡 AI Analyst Insight
CABOT CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CBT Profitability Ratios
CBT vs Default Sector
How CABOT CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CBT Balance Sheet & Liquidity
CBT 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 Growth Metrics (YoY)
CBT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q3 2023 | $968.0M | $82.0M | $1.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CBT Capital Allocation
CBT SEC Filings
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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CBT's key strengths?
Strong liquidity position with 1.67x current ratio and $230M cash reserves. Healthy interest coverage of 7.2x indicates low default risk and debt servicing capacity.
What are the risks of investing in CBT?
Revenue contraction of 7% YoY signals declining demand or market share loss in chemical products sector. Diluted EPS down 10.4% YoY despite flat net income suggests share dilution and operational pressure.
What is CBT's revenue and growth?
CABOT CORP reported revenue of $849.0M.
Does CBT pay dividends?
CABOT CORP pays dividends, with $24.0M 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 $1.37.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.