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/CBT
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Cabot Corp

Cabot Corp

CBT
$90.39USD↓-1.08%-0.99 today

MARKET CAP

4.7B

P/E (TTM)

13.4x

FWD P/E

13.5x

DAY RANGE

$90 – $92

52W RANGE

$58
$95

AI Summary

Stalk
Buy NowHigh

CBT is in a robust Stage 2 uptrend with clear sequential higher highs and higher lows underpinned by rising EMAs, supportive volume, and relative strength leadership. The medium-term bias remains bullish, and short-term conditions are favorable with price tightly tracking rising 9/21 EMAs without overextended stress. A buy now is warranted on continuation participation at the breakout area, with execution aligned to the advancing trend and awaiting acceptance beyond recent highs.

  • ↑High earnings yield and 1.11x book-to-price support valuation upside.
  • ↑Q2 adjusted EPS $1.90, up 7% YoY, shows operational resilience.
  • ↓Adjusted Q2 EPS $1.61, down 15% YoY, reflecting segment weakness.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Cabot Corporation (NYSE: CBT) is a global leader in the specialty chemicals and performance materials sector, primarily focusing on advanced materials, including carbon blacks and battery additives. The company is strategically positioned to leverage high-growth opportunities in emerging markets like electric vehicles (EVs) and energy storage solutions while managing cyclical downturns in traditional markets such as tire production. As a reputable player in the chemicals space, Cabot emphasizes innovation, sustainability, and operational excellence to strengthen its competitive position.

Bull says

  • ↑High earnings yield and 1.11x book-to-price support valuation upside.
  • ↑Q2 adjusted EPS $1.90, up 7% YoY, shows operational resilience.
  • ↑Battery materials revenue +43% YoY; positioning for EV demand surges.
  • ↑Operating cash flow $77M; $73M returned via dividends and buybacks.
  • ↑Liquidity $1.3B and net debt/EBITDA 1.4x ensure financial flexibility.
  • ↑Positive analyst revisions and strong momentum factors underpin share momentum.

Bear says

  • ↓Adjusted Q2 EPS $1.61, down 15% YoY, reflecting segment weakness.
  • ↓Reinforcement materials EBIT declined 29% YoY amid pricing pressure and competition.
  • ↓Negative profitability and growth factor scores indicate revenue and margin headwinds.
  • ↓Geopolitical tensions (Iran conflict) may disrupt supply chains and raise costs.
  • ↓High P/E and low institutional ownership signal overvaluation risk.
  • ↓Competition from low-cost Asian imports pressures margins and market share.

Investment themes with CBT

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q2 2026 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • Cash flow from operations was $77 million in the quarter, and discretionary free cash flow was $63 million in the quarter. The cash balance at the end of the quarter was $252 million, and our liquidity position remains strong at approximately $1.3 billion.
  • we have taken proactive pricing actions in performance chemicals, including a price increase of up to 20% in our specialty carbons and specialty compounds product lines implemented in March to offset rising input costs.
  • we remain dynamic in our pricing actions to ensure we maintain our margins.

Bear points

  • Adjusted earnings per share for the second quarter of fiscal 2026 was $1.61 compared to $1.90 in the second quarter of fiscal 2025, a decrease of 15% year-over-year. This decline was driven primarily by lower results in our reinforcement materials segment, partially offset by growth in our performance chemicals segment.
  • During the second quarter EBIT for reinforcement materials was 93 million, which was a decrease of 29% as compared to the same period in the prior year. The decrease was driven primarily by lower gross profit per ton from the outcomes of our calendar year 2026 customer agreements and increased competitive intensity in Asia.
  • the Iran conflict introduced a new dimension of geopolitical uncertainty during the quarter
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