| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 78 | 22.4x | 17.8x | Top tier | |
Growth | 14 | -4.7% | 7.1% | Bottom tier | |
Quality | 64 | 10.9% | 4.5% | Around median | |
Safety | 70 | 1.4x | 2.6x | Top tier | |
Capital Return | 63 | 2.30% | 2.12% | Around median | |
Momentum | 60 | 3.6% | 2.9% | Around median | |
Sentiment | 68 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cabot produces specialty carbon and chemical materials serving tires, batteries, electronics, infrastructure, and other industrial applications. Its operations are divided between the Reinforcement Materials segment, which is linked to tires and benefits from assets in Mexico and Indonesia, and the Performance Chemicals segment, which includes battery materials, fumed metal oxides, carbon blacks, and conductive compounds used in wire and cable and semiconductors. In battery materials, the company sells conductive additives including conductive carbon blacks, carbon nanotubes, carbon nanostructures, blends, and dispersions, with production capacity in the United States, Europe, and China.
In Q3 fiscal 2026, revenue was $982 million, gross profit was $184 million, net income was $6 million, and earnings per share under the financial statements was $0.12; equivalent to a gross margin of approximately 18.7% and a net income margin of approximately 0.6%. Compared with Q2 fiscal 2026, revenue increased from $904 million, but gross profit declined from $210 million and net income from $68 million, while adjusted earnings per share in Q3 fiscal 2026 were approximately $1.67, up 4% sequentially.
At the operating earnings mix level, the Reinforcement Materials segment generated earnings before interest and taxes of $97 million and an earnings before interest, taxes, depreciation, and amortization margin of 20%, compared with $128 million in operating earnings in the corresponding period. The Performance Chemicals segment generated earnings before interest and taxes of $68 million, an annual increase of $11 million, or 19%, supported by battery materials and fumed metal oxides, partially offsetting the impact of lower Reinforcement Materials profitability.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $94, within a range of $90 to $100, with the consensus rated “Buy.” The average target is approximately at the upper end of the 52-week range of $58.33–$94.53, while the highest target exceeds that level; no valid price-to-earnings ratio is available in the data, making the profitability valuation more complex in light of the large difference between quarterly net income of $6 million and adjusted earnings per share of $1.67.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Q3 fiscal 2026 revenue was approximately $982 million, gross profit was $184 million, and net income was $6 million. The company generated adjusted earnings per share of $1.67, up 4% sequentially. The primary support came from the Performance Chemicals segment, which increased its earnings before interest and taxes 19% annually to $68 million, while Reinforcement Materials earnings declined to $97 million from $128 million.
Cabot expects the battery materials product line to generate approximately $40 million in earnings before interest, taxes, depreciation, and amortization in fiscal 2026. Its margin for the twelve months ended at the close of Q3 fiscal 2026 was approximately 24%. The company is supporting this business with an investment of approximately $125 million at two existing U.S. sites, with the new capacity expected to enter service in 2028 and support approximately three years of projected growth.
The segment generated earnings before interest and taxes of $97 million in Q3 fiscal 2026, compared with $128 million in the corresponding period. The primary reason was lower gross profit per ton resulting from 2026 tire customer agreements, despite a 5% increase in global volumes. Management expects a modest sequential decline in segment earnings during Q4 fiscal 2026 due to weaker seasonal demand and a less favorable regional mix, particularly in Europe.
Management narrowed its adjusted earnings per share guidance for fiscal 2026 to a range of $6.15–$6.45, from a previous range of $6.00–$6.50. It also narrowed the expected capital expenditure range to $200–$215 million, reducing the upper end by $15 million. This spending includes maintaining the asset base and funding growth initiatives, including battery materials.
Cabot ended Q3 fiscal 2026 with $250 million in cash and cash equivalents and approximately $1.3 billion in available liquidity. Debt was approximately $1.3 billion, while the net debt-to-earnings before interest, taxes, depreciation, and amortization ratio stood at 1.4 times as of June 30, 2026. The company generated $75 million in operating cash flow during the quarter, spent $38 million on capital expenditures, and returned $24 million to shareholders through dividends.
Sean Keohane announced his retirement from his positions as president and chief executive officer on September 30, 2026, after approximately 25 years with Cabot, including ten years leading the company. The board elected Erica McLaughlin to assume the positions of president and chief executive officer effective October 1, 2026, after serving as chief financial officer and president of corporate strategy. Keohane will continue in an advisory capacity through the end of 2026, while the company has begun searching for a new chief financial officer.
