Lumida
/CBT
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Cabot Corp

Cabot Corp

CBT
$79.68USD↑+1.13%+0.89 today

MARKET CAP

4.1B

P/E (TTM)

15.0x

FWD P/E

—

DAY RANGE

$79 – $80

52W RANGE

$58
$95

AI Summary

Stalk
Sell NowMedium

CBT is entrenched in a downtrend with sequential lower highs and lower lows, trading below declining 9/20/50 EMAs that act as dynamic resistance. Recent support failure on elevated volume affirms supply dominance, and despite extreme oversold readings, there are no exhaustion signals visible. Medium-term bearish bias is intact, and execution should occur now on any rally into the EMA resistance zone. A clear reclaim and hold above the 20-day EMA would invalidate this posture.

  • ↑Performance Chemicals segment EBIT grew by $11M year-over-year
  • ↑Q3 net sales rose to $982M, 3.4% above expectations
  • ↓Net income fell 94% YoY to $6M, EPS $0.12
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Cabot Corporation (NYSE: CBT) is a leading producer of specialty chemicals and performance materials, with a significant presence in the reinforcement materials and performance chemicals industries. The company operates across various sectors, including battery materials, where it is expanding its operations to support the growth of electric vehicles and other advanced applications. Cabot's stronghold in performance chemicals positions it favorably within the materials sector as a key player in innovations that drive sustainability and technological advancements.

Bull says

  • ↑Performance Chemicals segment EBIT grew by $11M year-over-year
  • ↑Q3 net sales rose to $982M, 3.4% above expectations
  • ↑Adjusted EPS guidance narrowed to $6.15–$6.45 amid analyst upgrades
  • ↑Issued $350M in senior unsecured notes to improve liquidity
  • ↑Book-to-price of 1.21 and 0.48% dividend yield highlight value
  • ↑Battery materials push aligns with rising EV demand

Bear says

  • ↓Net income fell 94% YoY to $6M, EPS $0.12
  • ↓Negative profitability factor signals margin pressure
  • ↓Negative growth factor indicates weak revenue momentum
  • ↓Reinforcement Materials EBIT slid by $31M to $97M
  • ↓High short interest and negative institutional sentiment
  • ↓Leadership transition may increase near-term volatility

Investment themes with CBT

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2024 · Mgmt. Guidance

Updated 02-06-2025neutral

Transcript signals

Bull points

  • I am pleased with our first quarter results, which were aligned with our expectations and reflected strong year-over-year growth.
  • We delivered adjusted earnings per share of $1.56, which is up 59% as compared to the same period in the prior year, setting us off to a strong start to fiscal year 2024.
  • EBIT in Reinforcement Materials was up 37% year-over-year, demonstrating the structural improvements, we have made in recent years to the business and a structurally tight supply/demand balance in the mature regions.

Bear points

  • While we do not expect the same impact to our sales volumes from destocking in fiscal 2024, we have not yet seen signs that some of our key end markets such as building and construction, infrastructure, and consumer durables are moving back to prior levels.
  • We would expect EBITDA to grow in fiscal year '24 based on continued year-over-year volume growth and a better product mix in China as we optimize our participation and drive a higher penetration of our performance grades.
  • During the quarter, we experienced a foreign currency loss due to a government-imposed devaluation in Argentina. On December 13, the Argentinian government devalued the currency from ARS365 per dollar to more than ARS800, resulting in a foreign currency loss of $33 million on that day.
Read full transcript analysis ›