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CabotFRA:CBT +0.84%80 3-Year ROIIC % is 2.44 as of Sep. 2025, which is 86% below its 10-year median of 17.42. GuruFocus rates FRA:CBT with a GF Score™ of 80/100 and a GF Value™ of €65.99 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,523 Chemicals companies, Cabot ranks better than 55.02% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Cabot's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 2.44%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Cabot's 3-Year ROIIC % or its related term are showing as below:
FRA:CBT's 3-Year ROIIC % is ranked better than 55.02% of 1523
companies
in the Chemicals industry
Industry Median: 0.02
vs FRA:CBT: 2.44
Cabot (FRA:CBT) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Cabot 3-Year ROIIC % Related Terms
Cabot 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Cabot's 3-Year ROIIC % 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.
FRA:CBT vs SXT, BCPC, PRM: 3-Year ROIIC % Comparison
For the Specialty Chemicals subindustry, Cabot's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cabot's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Cabot's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Cabot (FRA:CBT) has a 3-Year ROIIC % of 2.44 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cabot and its competitors. This is 86% below median its historical median of 17.42. According to the industry distribution chart, Cabot ranks #685 out of 1523 companies in the Chemicals industry, placing it in the top 45%.
Is Cabot's 3-Year ROIIC % too high?
Cabot's current 3-Year ROIIC % of 2.44 is 86% below median its 10-year median of 17.42. The Chemicals industry median 3-Year ROIIC % is 0.02. Cabot's value of 2.44 is 12100% above this industry median. Based on the distribution chart, Cabot ranks #685 out of 1523 companies in the Chemicals industry, which is above the industry midpoint. Overall, Cabot has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cabot's 3-Year ROIIC % compare to SXT and BCPC?
According to the Chemicals industry distribution chart, Cabot ranks #685 out of 1523 companies for 3-Year ROIIC %. This puts Cabot in the upper half of its industry. The industry median 3-Year ROIIC % is 0.02. Cabot's value of 2.44 is 12100% above this benchmark. While the company's 10-year median is 17.42 vs. the industry median of 0.02, Cabot has consistently been above 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 3-Year ROIIC % for a Chemicals company?
The median 3-Year ROIIC % among Chemicals companies is 0.02, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cabot's current 3-Year ROIIC % of 2.44 is 12100% above 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cabot and its competitors. For the Chemicals industry, the median 3-Year ROIIC % is 0.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cabot's current 3-Year ROIIC % is 2.44, which is 86% below median its own 10-year median of 17.42. 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 €78.30 — trading 18.7% above its estimated fair value. The current 3-Year ROIIC % is 2.44, which is 86% below median its 10-year median of 17.42 and 12100% above the Chemicals industry median of 0.02. Cabot's overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Cabot (FRA:CBT), the current 3-Year ROIIC % is 2.44 as of Sep. 2025. 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 €78.30 is trading 18.7% above its estimated GF Value™ of €65.99.
GuruFocus considers Cabot to be Modestly Overvalued.
Key valuation signals for FRA:CBT:
3-Year ROIIC %: 2.44 (86% below median its 10-year median of 17.42)
GF Value™: €65.99 vs. price of €78.30 (18.7% above fair value)
Industry Position: 12100% above the Chemicals median (#685 of 1523)
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.
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