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Cabot Corporation CBT

Cabot Corporation scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$74.91Oct 9, 2026
Business qualityWeak
Next earningsNov 2, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Cabot Corporation does

    Cabot makes specialty chemicals like carbon black and performance materials, selling to tire, industrial, and infrastructure customers globally. The business relies on domestic demand and trade protection advantages to defend its manufacturing footprint against foreign imports.

  2. What it does best

    Cabot dominates the carbon black market through global scale, posting an operating margin of 14.2% that crushes Dow's 3.7% and Olin's negative margins. This manufacturing density prevents rivals from undercutting its supply chain.

  3. The main risk

    Revenue contraction is a clear threat, with top-line growth dropping 7.0% to $3.6B as industrial demand softens. If volume keeps shrinking, fixed-cost absorption worsens and compresses operating margins.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Gross margin sits at 23.2% while return on equity is 12.1%. Profitability lags the broader sector with operating margin ranking below median, meaning scale does not currently expand earnings power.

MoatFair

Cabot commands switching costs among tire and industrial manufacturers who rely on its precise carbon formulations. Its operating margin sits in the top quartile at the 63rd percentile, creating a sticky customer base.

GrowthSlow

Revenue is fading, dropping from $4.0B in 2024 to $3.6B in the latest period. Growth metrics sit in the bottom decile of its sector at the 10th percentile, showing a contraction across recent annual comparisons.

Financial healthFair

Debt-to-equity sits at 0.7x with interest coverage of 7.0x, leaving debt service manageable. Free cash flow stands at $281M after $216M in capex, reflecting softer generation as the balance sheet holds $872M in net debt.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $19.6M outside pre-planned sales.

Our sealed record on CBT

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is CBT a good business?

Cabot Corporation scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.

Are insiders buying CBT?

In the last 90 days of SEC Form 4 filings: 1 sold $19.6M outside pre-planned sales.

When does CBT report earnings?

Nov 2, 2026, after the close.

For members

See CBT today

  • Today's verdict on CBT, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Cabot Corporation (CBT)”, https://cluenex.com/stocks/cbt/, data as of Oct 10, 2026.