Cabot Corporation — Specialty Chemicals. Scored on the same transparent model behind the daily rankings.
★
CBT
Cabot Corporation · Specialty Chemicals
FCF$432mC
Rev-8.5%D
D/E0.78C
P/E15.0xB+
PEG1.00B+
59.8Score
$80.68$4.2B
1Y Target$91.40Analyst consensus · 5 analysts
5Y Target$115.39Compound horizon
10Y Target$147.99Long-dated conviction
FCF$432mTTMC
FCF $432m — modest; watch for margin expansion
Rev-8.5%TTM YoYD
Revenue -8.5% — meaningful contraction
D/E0.78C
D/E 0.78 — more levered than most Basic Materials peers (≈90th pctile)
P/E15.0xB+
P/E 15.0 — below the Basic Materials median (≈40th pctile)
PEG1.00B+
PEG 1.00 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 59.8
Quality0.77
Growth0.50
Value0.56
Why this score
Buying back stock
Durable high returns
Revenue shrinking
Entry · Margin of safety
52-week rangeMid-range
15% off the 12-month high
vs DCF fair value52% belowest. fair value ~$169
What the price assumes: free cash flow compounding at ~-10% a year for the next decade — vs the ~11% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability23% · Bgross profit ÷ total assets (Novy-Marx)
ROIC15.5% · A-return on invested capital — not score-weighted
Why now
Specialty Chemicals · market cap $4.2b. 15% off the 52-week high of $94.53. Revenue -9% — in contraction; any catalyst that reverses this triggers re-rating. 5 sell-side analysts rate this a Buy with a mean 1-yr target of $91.40 (implying +13% upside).
Moat
ROE 18% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 152% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Revenue contracting -9% — the operational turn is not yet visible in the top line.
Horizon
1-3 yr $91.40 (5-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $115.39 at ~7% CAGR — dividend + buyback compounding. 10 yr $147.99 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
CBT vs the Top Picks average
Pillar
CBT
Book avg
Diff
Quality
0.77
0.83
-0.06
Growth
0.50
0.91
-0.41
Value
0.56
0.75
-0.19
Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · CBT
Trend
-1.6 over 34 daily scores
From 61.4 (Jun 22) → 59.8 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · CBT
$
%
%
Shares to buy
24
Position size
$1,936
3.9% of portfolio
Stop price
$60.51
25% below $80.68
$ at risk if stopped
$484.08
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Cabot Corporation (CBT): score, valuation & FAQ
Cabot Corporation (CBT) is a Specialty Chemicals company that scores 59.8 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (B+) and PEG (B+), while Rev (D) rate weaker. On valuation, CBT sits about 52% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -10% annual free-cash-flow growth over the next decade.
Is CBT a good stock to buy?
Bull Rankings scores CBT 59.8 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (B+) and PEG (B+). A score is a quantitative screen of Cabot Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does CBT score 59.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). CBT earns its highest marks on P/E (B+) and PEG (B+), and is held back by Rev (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is CBT overvalued or undervalued?
Based on $80.68, CBT sits about 52% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -10% annual free-cash-flow growth over the next decade. It trades at a 15.0x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in CBT?
Revenue contracting -9% — the operational turn is not yet visible in the top line.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.