Is CBT a high-quality business?

AlphaMadera's AlphaQuality grade scores Cabot Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CBT compares to a Buffett-style quality bar.

What is Cabot Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CBT based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CBT a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CBT - Cabot Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $82.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B- 67.8 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

B+ 77.2

5yr Avg ROIC 12.5% 72/100
Operating Margin Trend +1.32 pp/yr 90/100

Capital Efficiency

Weight: 15%

A 89.1

5yr Avg ROE 20.8% 93/100
5yr Share-Count CAGR -1.2% 81/100

Growth Quality

Weight: 25%

C 54.1

5yr Revenue CAGR 2.2% 38/100
5yr EPS CAGR 8.5% 72/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

C 53.5

5yr FCF Margin 6.0% 54/100
5yr FCF/NI Conversion 0.57x 53/100

Balance Sheet

Weight: 10%

A- 81.7

Net Debt / EBITDA 1.21x 82/100
Interest Coverage (EBIT/Int) 8.42x 79/100
Altman Z-Score 3.31 85/100

Stability

Weight: 5%

C 53.4

EPS Volatility (σ/μ) 0.42 41/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 1 new buy; 3 trimmed.

Holders: 4 +1
Avg Δ position: -37.2%
New buys: 1
Full exits: 0

Laffont new
Greenblatt decreased -54%
Cooperman decreased -42%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.