Cabot Corporation Plummets in After-Hours Trading Following Business Update
June 18, 2023
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Cabot Corporation ($NYSE:CBT) has experienced a significant drop in after-hours trading following the release of their business update. The company is a leading producer of specialty chemicals and materials used in a variety of consumer and industrial applications. They provide solutions that serve the needs of many industries such as automotive, aerospace, energy, and medical. The plunge in after-hours trading comes after the company released their business update outlining their financial performance for the quarter and year-to-date. The update highlighted a decrease in year-over-year profits and lower-than-anticipated revenue growth.
This news sent investors scrambling to sell off their shares of the company, resulting in the decrease in market value following the announcement. Cabot Corporation’s decreased value is likely to have an impact on the stock’s long-term performance. Though the company is still performing well overall, the short-term effects of this sudden drop cannot be overlooked. It remains to be seen how the company will react to this sudden drop in its share price and whether or not they can recover in the coming quarters.
Price History
On Thursday, CABOT CORPORATION experienced a small increase of 0.9% in their share price, opening at $73.4 and closing at $74.6. Investors responded to the update by selling off their stocks, driving the price of CABOT CORPORATION down significantly. The sudden drop in stock price was unexpected and could spell trouble for the company if it continues. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cabot Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 4.26k | 315 | 7.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cabot Corporation. More…
| Operations | Investing | Financing |
| 353 | -197 | -150 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cabot Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.52k | 2.29k | 19.57 |
Key Ratios Snapshot
Some of the financial key ratios for Cabot Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.1% | 29.6% | 13.0% |
| FCF Margin | ROE | ROA |
| 3.0% | 32.8% | 9.8% |
Analysis
At GoodWhale, we have conducted an analysis of CABOT CORPORATION‘s fundamentals. Our Star Chart shows that CABOT CORPORATION is strong in dividend and profitability, and medium in asset and growth. We classify CABOT CORPORATION as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given its fundamentals, CABOT CORPORATION is an attractive option for investors who are looking for a dividend-paying stock with a strong history of profitability. Furthermore, with a high health score of 8/10 with regard to its cashflows and debt, CABOT CORPORATION is capable of paying off its debt and funding future operations. More…
Peers
This includes Zeon Corp, DIC Corp, and Kureha Corp, all of which have their own unique strengths and capabilities that pose a direct challenge to Cabot Corp’s leadership position. All four companies are striving to stay ahead of the curve and secure a competitive advantage in the market.
– Zeon Corp ($TSE:4205)
Zeon Corp is a diversified chemical company specializing in chemicals, plastics and synthetic rubbers. It has a market capitalization of 267.99B as of 2022, making it one of the largest chemical companies in the world. It also has an impressive Return on Equity (ROE) of 8.33%, which is higher than the average for the industry. This suggests that the company is efficiently using its resources to generate profits, and is an attractive investment for shareholders. The company has a broad portfolio of products and services, ranging from industrial materials to consumer products, and is well-positioned to benefit from the growth in the chemical industry.
– DIC Corp ($TSE:4631)
DIC Corp is a Japanese chemical company specializing in the production of chemicals, plastics, pigments, and printing inks. As of 2022, the company had a market cap of 231.43B and a Return on Equity (ROE) of 6.52%. DIC Corp’s market cap is indicative of its strong financial performance, as it has been able to generate high returns for its shareholders over the past few years. The company’s ROE is also a measure of its profitability, which suggests that DIC Corp is able to generate profits from the investments it makes. The company has been able to consistently grow its revenue and profits over the years, further demonstrating its strong fundamentals.
– Kureha Corp ($TSE:4023)
Kureha Corp is a diversified chemical company based in Japan. It produces a variety of products including plastics, rubber, and specialty chemicals. With a market cap of 173.31B as of 2022, Kureha Corp is a well-established company that is financially sound. Its Return on Equity (ROE) of 7.94% indicates that the company is able to generate a return on its investments that is higher than the average of the industry. This demonstrates Kureha Corp’s financial strength and shows that the company is well-positioned to continue to succeed in the future.
Summary
Cabot Corporation has experienced a significant decline in its stock price in after-hours trading following a business update. Analysts suggest this drop could be attributed to the company’s lackluster financial performance in the last quarter with lower-than-expected earnings. Investors have expressed concern over the company’s slow progress in restructuring and cost-cutting initiatives, resulting in decreased profits and a less than favorable outlook for the future.
Additionally, the company’s debt levels remain relatively high, raising further doubts about its ability to remain solvent. Given the current market conditions, Cabot Corporation is not a recommended investment at this time.
