-0.29%
-4.46%
-19.09%
-13.01%
21.00%
58.65%
118.92%

Company Description

Cabot Corporation operates as a specialty chemicals and performance materials company.It operates through three segments: Reinforcement Materials, Performance Chemicals, and Purification Solutions.The company offers reinforcing carbons used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites.


It also provides specialty carbons used in inks, coatings, plastics, adhesives, toners, batteries, and displays applications; masterbatch and conductive compound products for use in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; inkjet colorants used in the inkjet printing applications; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; fumed alumina used in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries; and aerogel, a hydrophobic, silica-based particle for use in various thermal insulation and specialty chemical applications.In addition, the company offers activated carbon products used for the purification of water, air, food and beverages, pharmaceuticals, and other liquids and gases; and activated carbon solutions for activated carbon injection in coal-fired utilities, mobile water filter units, and carbon reactivation services.The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

Market Data

Last Price 87.24
Change Percentage -0.29%
Open 88.05
Previous Close 87.49
Market Cap ( Millions) 4730
Volume 366238
Year High 117.46
Year Low 70.63
M A 50 98.14
M A 200 100.57

Financial Ratios

FCF Yield 9.53%
Dividend Yield 1.94%
ROE 27.80%
Debt / Equity 80.00%
Net Debt / EBIDTA 120.82%
Price To Book 3.45
Price Earnings Ratio 12.94
Price To FCF 10.49
Price To sales 1.18
EV / EBITDA 7.44

News

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Reinforcement Materials

Expected Growth : 3.5 %

What the company do ?

Reinforcement Materials from Cabot Corporation are high-performance additives that enhance the strength, durability, and thermal conductivity of composites, adhesives, and coatings.

Why we expect these perspectives ?

Cabot Corporation's Reinforcement Materials segment growth of 3.5% is driven by increasing demand for energy-efficient tires, growth in the global automotive market, and rising adoption of electric vehicles. Additionally, the segment benefits from Cabot's strong market position, innovative product offerings, and strategic partnerships with leading tire manufacturers.

Segment n°2 -> Performance Chemicals

Expected Growth : 3.8 %

What the company do ?

Performance Chemicals from Cabot Corporation are specialty additives that enhance the performance of various products, such as coatings, inks, and adhesives, by improving their durability, flow, and stability.

Why we expect these perspectives ?

Cabot Corporation's Performance Chemicals segment growth of 3.8% is driven by increasing demand for specialty additives in the automotive and construction industries, as well as growing adoption of sustainable and energy-efficient solutions. Additionally, strategic investments in research and development, and expansion into emerging markets, have contributed to the segment's growth.

Segment n°3 -> Unallocated and Other

Expected Growth : 2.5 %

What the company do ?

Unallocated and Other from Cabot Corporation refers to the costs and expenses not attributed to specific business segments, including corporate overhead, R&D, and other miscellaneous items.

Why we expect these perspectives ?

Cabot Corporation's Unallocated and Other segment growth of 2.5% is driven by increased demand for specialty chemicals and additives in the automotive and construction industries, as well as cost savings initiatives and strategic pricing actions.

Cabot Corporation Products

Product Range What is it ?
Reinforcement Materials Carbon black, silica, and other reinforcing materials used in tires, rubber, and plastics
Performance Materials Specialty carbons, fumed silica, and alumina used in coatings, inks, and plastics
Purification Solutions Activated carbon, zeolites, and other materials used for air and water purification
Specialty Carbons High-performance carbons used in energy storage, electronics, and other applications
Metal Oxides Alumina, silica, and other metal oxides used in ceramics, catalysts, and other applications

Cabot Corporation's Porter Forces

The threat of substitutes for Cabot Corporation is medium due to the availability of alternative products from competitors, but the company's strong brand reputation and product quality help to mitigate this threat.

The bargaining power of customers is low for Cabot Corporation due to the company's strong relationships with its customers and its ability to provide customized solutions that meet their specific needs.

The bargaining power of suppliers is medium for Cabot Corporation due to the company's dependence on a few key suppliers for certain raw materials, but the company's strong relationships with its suppliers help to mitigate this risk.

The threat of new entrants is low for Cabot Corporation due to the high barriers to entry in the specialty chemicals industry, including the need for significant capital investment and technical expertise.

The intensity of rivalry is high for Cabot Corporation due to the competitive nature of the specialty chemicals industry, with many established players competing for market share.

Capital Structure

Value
Debt Weight 50.24%
Debt Cost 6.64%
Equity Weight 49.76%
Equity Cost 10.27%
WACC 8.45%
Leverage 100.95%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
NEU NewMarket Corporation, through its subsidiaries, engages in the petroleum additives business. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road …
OLN Olin Corporation manufactures and distributes chemical products in the United States, Europe, and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali …
IOSP Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties …
RPM RPM International Inc. manufactures, markets, and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and institutional roofing systems; sealants, air barriers, tapes, and …
BCPC Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets in the United States …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
87.24$
Current Price
87.24$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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