Oddity Tech Ltd. Fundamental Analysis
Oddity Tech Ltd. (ODD) shows moderate financial fundamentals with a PE ratio of 10.89, profit margin of 6.97%, and ROE of 14.45%. The company generates $0.7B in annual revenue with strong year-over-year growth of 25.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ODD's fundamental strength across five key dimensions:
Efficiency Score
WeakODD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentODD trades at attractive valuation levels.
Growth Score
ModerateODD shows steady but slowing expansion.
Financial Health Score
ModerateODD shows balanced financial health with some risks.
Profitability Score
WeakODD struggles to sustain strong margins.
Key Financial Metrics
Is ODD Expensive or Cheap?
P/E Ratio
ODD trades at 10.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ODD's PEG of -0.21 indicates potential undervaluation.
Price to Book
The market values Oddity Tech Ltd. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.08 times EBITDA. This is generally considered low.
How Well Does ODD Make Money?
Net Profit Margin
For every $100 in sales, Oddity Tech Ltd. keeps $6.97 as profit after all expenses.
Operating Margin
Core operations generate 6.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.45 in profit for every $100 of shareholder equity.
ROA
Oddity Tech Ltd. generates $4.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oddity Tech Ltd. generates limited operating cash flow of $-21.24M, signaling weaker underlying cash strength.
Free Cash Flow
Oddity Tech Ltd. generates weak or negative free cash flow of $-25.08M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.44 in free cash annually.
FCF Yield
ODD converts -4.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How ODD Stacks Against Its Sector Peers
| Metric | ODD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.89 | 37.28 | Better (Cheaper) |
| ROE | 14.45% | 973.00% | Weak |
| Net Margin | 6.97% | 5896794845.00% | Weak |
| Debt/Equity | 2.04 | 0.42 | Weak (High Leverage) |
| Current Ratio | 4.06 | 4.95 | Strong Liquidity |
| ROA | 4.91% | -296134.00% (disorted) | Weak |
ODD outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oddity Tech Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
627.12%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
839.22%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
277.98%
Industry Style: Growth, Innovation, High Beta
High Growth