CabotFRA:CBT +1.69%74 Interest Coverage is 7.17 as of Mar. 2026, which is 4% above its 10-year median of 6.88. GuruFocus rates FRA:CBT with a GF Score™ of 74/100 and a GF Value™ of €65.99 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,234 Chemicals companies, Cabot ranks worse than 57.13% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Cabot's
Operating Income
for the
three
months ended in Mar. 2026 was €112 Mil. Cabot's Interest Expense for the
three
months ended in Mar. 2026 was €-16 Mil.
Cabot's interest coverage for the quarter that ended in Mar. 2026 was 7.17.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cabot's Interest Coverage or its related term are showing as below:
FRA:CBT'
s Interest Coverage Range Over the Past 10 Years
Min: 2.85 Med: 6.88 Max: 10.21
Current: 7.49
FRA:CBT's Interest Coverage is ranked worse than 57.13% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs FRA:CBT: 7.49
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Cabot Interest Coverage Related Terms
Cabot Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cabot's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:CBT vs SXT, BCPC, PRM: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Cabot's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cabot Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cabot's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cabot's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cabot (FRA:CBT) has a Interest Coverage of 7.17 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cabot and its competitors. This is near median its historical median of 6.88. Over the past decade, Cabot's Interest Coverage has ranged from 2.85 to 10.21. According to the industry distribution chart, Cabot ranks #705 out of 1234 companies in the Chemicals industry, placing it in the top 57.1%.
Is Cabot's Interest Coverage too high?
Cabot's current Interest Coverage of 7.17 is near median its 10-year median of 6.88. Over the past 10 years, this metric has ranged from a low of 2.85 to a high of 10.21. The Chemicals industry median Interest Coverage is 10.18. Cabot's value of 7.17 is 29.6% below this industry median. Based on the distribution chart, Cabot ranks #705 out of 1234 companies in the Chemicals industry, which is below the industry midpoint. Overall, Cabot has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cabot's Interest Coverage compare to SXT and BCPC?
According to the Chemicals industry distribution chart, Cabot ranks #705 out of 1234 companies for Interest Coverage. This places Cabot in the lower half of its industry. The industry median Interest Coverage is 10.18. Cabot's value of 7.17 is 29.6% below this benchmark. Historically, Cabot's own Interest Coverage has ranged from 2.85 to 10.21 over the past decade. While the company's 10-year median is 6.88 vs. the industry median of 10.18, Cabot has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cabot's current Interest Coverage of 7.17 is 29.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cabot and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cabot's current Interest Coverage is 7.17, which is near median its own 10-year median of 6.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cabot stock overvalued right now?
Based on GuruFocus' analysis, Cabot (FRA:CBT) is currently considered Modestly Overvalued. The stock's GF Value™ is €65.99, compared to a current price of €81.40 — trading 23.4% above its estimated fair value. The current Interest Coverage is 7.17, which is near median its 10-year median of 6.88 and 29.6% below the Chemicals industry median of 10.18. Cabot's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Cabot (FRA:CBT), the current Interest Coverage is 7.17 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cabot (FRA:CBT) Overvalued in 2026?
Based on GuruFocus' analysis, Cabot stock appears to be overvalued.
The current stock price of €81.40 is trading 23.4% above its estimated GF Value™ of €65.99.
GuruFocus considers Cabot to be Modestly Overvalued.
Key valuation signals for FRA:CBT:
Interest Coverage: 7.17 (near median its 10-year median of 6.88)
GF Value™: €65.99 vs. price of €81.40 (23.4% above fair value)
Industry Position: 29.6% below the Chemicals median (#705 of 1234)
No single metric tells the full story. See the FRA:CBT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cabot Corp manufactures and sells a variety of chemicals, materials, and chemical-based products. The company organizes itself into the following operating segments based on the product type; the Reinforcement Materials segment which generates maximum revenue provides reinforcing carbon products used in tires, and industrial products such as hoses, belts, extruded profiles, and molded goods; and the Performance Chemicals segment aggregates the specialty carbons, specialty compounds, fumed metal oxides, battery materials, inkjet colorants, and aerogel product lines. Geographically, the company derives maximum revenue from its customers in Europe, the Middle East, and Africa and the rest from the Americas and Asia Pacific region.
74GF Score
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