Cabot Corp (CBT)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-09
$79.35-1.21%
Close 2026-09-09 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-09
Warn: Primary pillar under pressure — Cash flow from operations near $77M per quarter: metric not reported.
Cabot grows battery materials with strong demand. EPS is guided near $6.25 in Q3 2026. The company keeps cash flow strong around $77M per quarter. New credit deal improves financial flexibility.
Cash flow fell from $126M to $77M last quarter. Operating income is down from $162M to $129M. EPS guidance is soft, below last year's $7.33.
Price is about 12% below our fair value near $100. Analysts expect 3% revenue growth, which we agree with.
Breaks if: credit facility reduced below $1 billion
Breaks if: cash flow falls below $70M per quarter
EPS falls below $6.0 next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is positioned as a durable compounder with a focus on growth in the Battery Materials segment. The current thesis state is intact, supported by recent performance and management priorities.
The market currently prices CBT as cheap compared to its peers, reflecting a low expectations gap. The valuation suggests that while there is some fragility due to execution quality, it is not fully priced in.
Fundamentals are likely to show mixed results in the near term. Management's focus on growth in Battery Materials is on track, but cash flow has declined, indicating potential challenges ahead.
The long-term thesis hinges on the ability of CBT to maintain growth in its Battery Materials segment and successfully optimize its manufacturing footprint. Additionally, external factors like inflation and sector performance will play a crucial role.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read. Growth in the Battery Materials segment also strengthens the outlook. However, guidance challenges the thesis. The CEO transition may disrupt operational stability. Concerns arise from the CEO's stock sale.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: operating income falls below $120M per quarter
Over the next 1 to 3 years, CBT's performance will depend on its execution and external market conditions. Not investment advice.