Oil-Dri Corporation of America
Oil-Dri Corporation of America Fundamental Analysis
Oil-Dri Corporation of America (ODC) shows strong financial fundamentals with a PE ratio of 12.31, profit margin of 10.73%, and ROE of 20.35%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 5.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ODC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentODC demonstrates superior asset utilization.
Valuation Score
ExcellentODC trades at attractive valuation levels.
Growth Score
ExcellentODC delivers strong and consistent growth momentum.
Financial Health Score
ExcellentODC maintains a strong and stable balance sheet.
Profitability Score
ModerateODC maintains healthy but balanced margins.
Key Financial Metrics
Is ODC Expensive or Cheap?
P/E Ratio
ODC trades at 12.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ODC's PEG of -7.01 indicates potential undervaluation.
Price to Book
The market values Oil-Dri Corporation of America at 2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.46 times EBITDA. This signals the market has high growth expectations.
How Well Does ODC Make Money?
Net Profit Margin
For every $100 in sales, Oil-Dri Corporation of America keeps $10.73 as profit after all expenses.
Operating Margin
Core operations generate 13.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.35 in profit for every $100 of shareholder equity.
ROA
Oil-Dri Corporation of America generates $13.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oil-Dri Corporation of America produces operating cash flow of $111.66M, showing steady but balanced cash generation.
Free Cash Flow
Oil-Dri Corporation of America generates strong free cash flow of $71.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.12 in free cash annually.
FCF Yield
ODC converts 5.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How ODC Stacks Against Its Sector Peers
| Metric | ODC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.31 | 27.01 | Better (Cheaper) |
| ROE | 20.35% | 949.00% | Weak |
| Net Margin | 10.73% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 3.34 | 4.42 | Strong Liquidity |
| ROA | 13.47% | -6411.00% (disorted) | Strong |
ODC outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oil-Dri Corporation of America's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.40%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
198.54%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
119.02%
Industry Style: Cyclical, Commodity, Value
High Growth