Cabot Story

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CBT -- USA Stock  

USD 49.23  0.57  1.14%

Cabot is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 1st of February 2021. Because some of us are getting excited about basic materials space, it makes sense to review Cabot in greater detail. We will analyze why Cabot investors may still consider a stake in the business given the newest economic outlook.
Published over three weeks ago
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Should you trade your Cabot (NYSE:CBT) positions based on the newest analyst consensus?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cabot has an asset utilization ratio of 85.74 percent. This implies that the company is making $0.86 for each dollar of assets. An increasing asset utilization means that Cabot is more efficient with each dollar of assets it utilizes for everyday operations.
What is the right price you would pay to acquire a share of Cabot Corp? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

What is happening with Cabot Corp this year

Annual and quarterly reports issued by Cabot Corp are formal financial statements that are published yearly and quarterly and sent to Cabot stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Cabot Corp often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Cabot utilizes its cash?

To perform a cash flow analysis of Cabot Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cabot Corp is receiving and how much cash it distributes out in a given period. The Cabot Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cabot Corp Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Cabot Corp reported Net Cash Flow from Operations of 433.55 Million in 2020

Detailed Perspective On Cabot Corp

Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding Cabot's future annual earnings. Given the historical accuracy of 90.51%, the future earnings per share of the company is estimated to be 3.3625 with the lowest and highest values of 3.1 and 3.65, respectively. Please note that this consensus of annual earnings estimates for Cabot is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Cabot a risky opportunity?

Let's check the volatility. Cabot is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Cabot (NYSE:CBT) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Cabot stock makes you a part-owner of that company.

Cabot Current Consensus

Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Cabot. The Cabot consensus assessment is calculated by taking the average estimates from all of the analysts covering Cabot

Strong Buy
Strong Buy233.33
Strong Sell00.0

Will Cabot private investors exit after the drop?

The semi deviation is down to 2.11 as of today. Cabot currently demonstrates below-verage downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.12. However, we do advice investors to further question Cabot expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Cabot

Whereas some other entities within the specialty chemicals industry are still a little expensive, even after the recent corrections, Cabot may offer a potential longer-term growth to private investors. To conclude, as of the 31st of January 2021, we believe that at this point, Cabot is overvalued with below average odds of distress within the next 2 years. Our latest recommendation on the firm is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Cabot Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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