Orica Limited
Orica Limited Fundamental Analysis
Orica Limited (OCLDF) shows weak financial fundamentals with a PE ratio of 101.07, profit margin of 1.99%, and ROE of 2.95%. The company generates $5.2B in annual revenue with weak year-over-year growth of -3.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OCLDF's fundamental strength across five key dimensions:
Efficiency Score
WeakOCLDF struggles to generate sufficient returns from assets.
Valuation Score
ModerateOCLDF shows balanced valuation metrics.
Growth Score
ModerateOCLDF shows steady but slowing expansion.
Financial Health Score
WeakOCLDF carries high financial risk with limited liquidity.
Profitability Score
ModerateOCLDF maintains healthy but balanced margins.
Key Financial Metrics
Is OCLDF Expensive or Cheap?
P/E Ratio
OCLDF trades at 101.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OCLDF's PEG of 1.09 indicates fair valuation.
Price to Book
The market values Orica Limited at 3.93 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.38 times EBITDA. This signals the market has high growth expectations.
How Well Does OCLDF Make Money?
Net Profit Margin
For every $100 in sales, Orica Limited keeps $1.99 as profit after all expenses.
Operating Margin
Core operations generate 10.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.95 in profit for every $100 of shareholder equity.
ROA
Orica Limited generates $1.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Orica Limited produces operating cash flow of $909.38M, showing steady but balanced cash generation.
Free Cash Flow
Orica Limited generates strong free cash flow of $539.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.16 in free cash annually.
FCF Yield
OCLDF converts 5.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
101.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How OCLDF Stacks Against Its Sector Peers
| Metric | OCLDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 101.07 | 24.91 | Worse (Expensive) |
| ROE | 2.95% | 840.00% | Weak |
| Net Margin | 1.99% | -105381.00% (disorted) | Weak |
| Debt/Equity | 1.09 | 0.55 | Weak (High Leverage) |
| Current Ratio | 0.80 | 4.94 | Weak Liquidity |
| ROA | 1.60% | -4176.00% (disorted) | Weak |
OCLDF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Orica Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.61%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
71.65%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-13.24%
Industry Style: Cyclical, Commodity, Value
Declining