ScoreWhy is Cabot Corp. ?
1
Negative results in Jun 25
- ROCE(HY) Lowest at 29.03%
- NET SALES(Q) Lowest at USD 923 MM
2
With ROCE of 25.57%, it has a attractive valuation with a 2.05 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -34.72%, its profits have fallen by -4.1%
3
Below par performance in long term as well as near term
- Along with generating -34.72% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Cabot Corp. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cabot Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cabot Corp.
21.11%
-0.96
31.56%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.50%
EBIT Growth (5y)
20.50%
EBIT to Interest (avg)
7.20
Debt to EBITDA (avg)
1.66
Net Debt to Equity (avg)
0.75
Sales to Capital Employed (avg)
1.48
Tax Ratio
20.41%
Dividend Payout Ratio
29.26%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
22.98%
ROE (avg)
27.99%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
2.46
EV to EBIT
7.93
EV to EBITDA
6.29
EV to Capital Employed
1.93
EV to Sales
1.32
PEG Ratio
NA
Dividend Yield
2.51%
ROCE (Latest)
24.36%
ROE (Latest)
22.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 671 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 35.06%
CASH AND EQV(HY)
Highest at USD 482 MM
DIVIDEND PER SHARE(HY)
Highest at USD 5.12
-8What is not working for the Company
NET PROFIT(9M)
At USD 190.87 MM has Grown at -40.17%
ROCE(HY)
Lowest at 18.76%
RAW MATERIAL COST(Y)
Grown by 7.07% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.04 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.12 times
Here's what is working for Cabot Corp.
Operating Cash Flow
Highest at USD 671 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Cash and Eqv
Highest at USD 482 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at USD 5.12
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 35.06%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 49 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Cabot Corp.
Net Profit
At USD 190.87 MM has Grown at -40.17%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Inventory Turnover Ratio
Lowest at 5.04 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.12 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 7.07% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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