Cabot Corporation (CBT) exhibits 25.3% gross margins and 22.3% return on invested capital within Materials (Major Chemicals), balanced against a 5.2x enterprise multiple and 4.8% implied options volatility.
Sustained 25.3% gross profitability converts into 16.7% operating margin and 22.3% ROIC, outpacing sector cost of capital.
ROIC: 22.3% // GM: 25.3%YoY revenue trajectory of -7.0% paired with 10.25% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -7.0% // FCF YLD: 10.25%Altman Z-Score of 3.80 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.80 // F-SCORE: 7/9Trading at 11.5x trailing P/E (10.7x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 11.5x // EV/EBITDA: 5.2xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $73.85 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Major Chemicals require continuous execution to defend 8.9% net margins.
NET MARGIN: 8.9% // D/E: 0.54x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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