OM Holdings Ltd. (OMH) AI Stock Analysis

• Market Cap: AU$202.55M
• Dividend Yield: 1.54%
• Average Volume (3M): 91.41K
• Price to Earnings (P/E): 55.2
• Beta (1Y): 0.31
• Revenue Growth: 14.64%
• EPS Growth: -213.25%
• Country: AU
• Employees: 1,105
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.02
• Shares Outstanding: 766,256,800
• 10 Day Avg. Volume: 69,321
• 30 Day Avg. Volume: 91,405
• PEG Ratio: -0.91
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -3.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): <0.01
• Revenue Forecast (FY): AU$793.84M

• Rating: 41 Neutral
• Price Target: AU$0.25 ▼(-4.62% Downside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is weighed down primarily by deteriorating fundamentals (sharp 2025 revenue decline, margin compression, and negative operating/free cash flow). Technicals are also weak with price below key moving averages and negative MACD, despite oversold oscillators. Valuation adds pressure due to a high P/E with only a modest dividend yield.

Positive Factors

Vertical integration across mining, processing and trading

OMH's integrated model (mining → processing → trading) creates structural competitive advantage: it captures margin across the value chain, provides supply control and logistical know-how, and cushions revenue volatility from raw-price swings over the medium term.

Manageable balance sheet leverage

Debt roughly half of equity implies financial flexibility versus more highly leveraged peers. This structural leverage level reduces near-term refinancing pressure, supports working-capital funding during cyclicality, and leaves room for operational fixes without immediate solvency stress.

Prior ability to generate positive cash flow

Historical positive operating and free cash flow in 2022–2024 shows the business can generate cash when market and operational conditions improve. That operational cash-generation capability is a durable asset for navigating cycles and supporting reinvestment when volumes/prices recover.

Negative Factors

Sharp revenue decline

A ~64% revenue drop materially reduces scale economics and undermines fixed-cost absorption in smelting and mining assets. Persistently lower volumes or contract rollovers at reduced prices would structurally compress margins and weaken long-term competitiveness if not reversed.

Negative operating and free cash flow

Negative OCF and FCF in 2025 increase funding and liquidity risk, forcing reliance on external financing or asset sales. Structurally, weak cash conversion limits capacity to fund maintenance capex for smelters and mines, raising the risk of production disruption and higher long-term costs.

Compressed margins and weak returns

Very thin net margins and near-zero ROE indicate the business currently struggles to earn acceptable returns on capital. Structurally weak profitability reduces reinvestment capacity, limits dividend sustainability, and heightens sensitivity to cost inflation (energy, reductants, freight) over the medium term.

OM Holdings Ltd. Business Overview & Revenue Model

Company Description

OM Holdings Limited, an investment holding company, engages in mining, smelting, trading, and marketing manganese ores and ferroalloys. The company operates through Mining, Smelting, and Marketing and Trading segments. The company owns and operates Bootu Creek manganese ore mine located in the Northern territory of Australia. It also produces manganese ferroalloys, ferrosilicon, and manganese sinter ore; and trades in manganese ore, manganese ferroalloys, ferrosilicon, sinter ore, chrome ore, and iron ore. It has operations in the Asia Pacific, Europe, the Middle East, Africa, and internationally. OM Holdings Limited was founded in 1993 and is headquartered in Singapore.

How the Company Makes Money

OM Holdings Ltd. generates revenue through the sale of its core products, including manganese ore and silicon metal, which are sold to customers in the steel and ferroalloy sectors. The company benefits from fluctuating commodity prices, which can impact earnings based on global demand and supply dynamics. Key revenue streams include direct sales to manufacturers and trading companies, as well as long-term contracts with major clients. Additionally, OMH may engage in strategic partnerships with other mining and smelting companies to enhance operational efficiencies and expand market reach, contributing to its overall financial performance.

OM Holdings Ltd. Financial Statement Overview

Summary

Financial performance is weak: 2025 revenue fell ~64% YoY, margins compressed sharply, and net margin was very thin (~0.4%). The balance sheet leverage is manageable (debt-to-equity ~0.52–0.54), but negative operating and free cash flow in 2025 is a key risk and drives the low score.

Income Statement

Profitability and growth have weakened materially. Revenue fell sharply in 2025 (down ~64% year over year) after a mixed growth pattern over 2020–2024, and margins compressed significantly versus the strong 2021–2022 period. Net profit was still positive in 2025, but at a very thin level (~0.4% net margin), indicating limited earnings resilience if pricing, volumes, or costs move against the company.

Balance Sheet

Leverage looks manageable with debt around half of equity in 2024–2025 (debt-to-equity ~0.52–0.54), an improvement from higher leverage earlier in the period (notably 2020). Equity remains substantial relative to the asset base, which supports financial flexibility. The key weakness is low recent returns on equity (about ~0.6% in 2025 and ~2.1% in 2024), reflecting that the balance sheet is not currently generating strong profitability.

Cash Flow

Cash generation has become a clear concern. Operating cash flow swung to negative in 2025 and free cash flow was also negative, reversing the healthier cash profile seen in 2024 and especially 2022. The large year-over-year deterioration in free cash flow in 2025 suggests elevated working-capital needs and/or heavier cash investment, which increases funding risk if weak earnings persist.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	986.80M	1.06B	887.71M	1.26B	1.04B
Gross Profit	86.42M	182.78M	112.99M	301.19M	243.57M
EBITDA	69.77M	94.23M	95.25M	219.66M	128.22M
Net Income	3.64M	14.11M	18.14M	97.86M	81.91M
Balance Sheet
Total Assets	1.25B	1.52B	1.38B	1.30B	1.30B
Cash, Cash Equivalents and Short-Term Investments	35.80M	109.71M	102.27M	91.63M	97.73M
Total Debt	325.08M	364.14M	397.34M	379.34M	416.73M
Total Liabilities	611.38M	841.91M	526.32M	714.28M	678.35M
Stockholders Equity	629.32M	673.08M	602.85M	581.85M	505.27M
Cash Flow
Free Cash Flow	-62.47M	70.02M	-17.57M	146.30M	63.60M
Operating Cash Flow	-54.05M	85.41M	14.49M	271.73M	72.61M
Investing Cash Flow	7.44M	-15.41M	-16.28M	-215.07M	9.54M
Financing Cash Flow	-25.88M	-70.91M	13.27M	-77.84M	-34.70M

OM Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OMH, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:OMH.

OM Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RHI	63 Neutral	AU$318.71M	20.11	6.50%	2.13%	―	-94.07%
GRR	62 Neutral	AU$231.47M	7.08	4.28%	―	-13.54%	-56.86%
FEX	62 Neutral	€275.64M	9.29	3.14%	2.17%	21.95%	-84.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AIS	61 Neutral	AU$628.51M	3.21	15.33%	―	6.70%	―
OMH	41 Neutral	AU$202.55M	55.21	-3.24%	1.54%	14.64%	-213.25%

OM Holdings Ltd. Corporate Events

OM Holdings Stays Profitable and Tightens Balance Sheet in Tough FY2025

OM Holdings reported FY2025 revenue of US$636.3 million, down 3% year on year, as weaker ferrosilicon and manganese alloy prices compressed gross margins to 9.8% and reduced EBITDA to US$50.7 million. Despite tougher pricing and softer steel demand, the group stayed profitable with net profit after tax of US$1.1 million, aided by higher sales volumes, lower unit costs, and disciplined operations.

The company strengthened its balance sheet by trimming total borrowings to US$213.1 million and improving its borrowings-to-equity ratio to 0.50 times after refinancing OM Sarawak project loans and a revolving credit facility on better terms. It also completed the divestment of its 26% stake in Ntsimbintle Mining for about US$120 million, further bolstering financial flexibility as it positions for a recovery in ferroalloy markets.

The most recent analyst rating on (AU:OMH) stock is a Hold with a A$0.32 price target. To see the full list of analyst forecasts on OM Holdings Ltd. stock, see the AU:OMH Stock Forecast page.

OM Holdings Profits Slump as Margins Compress Despite Higher Volumes

OM Holdings has reported a sharp earnings slowdown for the year to 31 December 2025, as weaker average selling prices squeezed margins despite higher sales volumes. Revenue dipped 3% to US$636.3 million while gross margin fell from 17.3% to 9.8%, driving profit after tax attributable to shareholders down 75% to US$2.3 million and EBITDA down to US$50.7 million from US$76.0 million.

The group’s balance sheet remained relatively stable, with borrowings trimmed to US$213.1 million and gearing marginally lower at 0.50 times, though cash balances dropped significantly to US$23.9 million and operations consumed US$17.8 million of cash. Net asset backing per share edged up to 55.25 US cents, suggesting underlying asset strength even as weaker pricing and profitability weigh on short‑term returns for investors and other stakeholders.

The most recent analyst rating on (AU:OMH) stock is a Hold with a A$0.32 price target. To see the full list of analyst forecasts on OM Holdings Ltd. stock, see the AU:OMH Stock Forecast page.

OM Holdings Restarts Qinzhou Manganese Smelter After Prolonged Shutdown

OM Materials (Qinzhou) Co., Ltd., a joint venture in which OM Holdings now holds a 40% stake alongside majority partner Shaanxi Sinian Metal & Mining, has successfully recommissioned its Qinzhou smelter and sinter plant after a production shutdown that began in December 2021 due to elevated power tariffs in China. The Qinzhou facility, comprising two closed-furnace lines with an annual design capacity of 80,000–95,000 tonnes of manganese alloys and 300,000 tonnes of sinter ore, will restart in phases, marking a significant milestone for OM Holdings as it restores key production capacity and seeks to optimise operations with its new partner to enhance returns from its strategic participation in the project.

The most recent analyst rating on (AU:OMH) stock is a Hold with a A$0.36 price target. To see the full list of analyst forecasts on OM Holdings Ltd. stock, see the AU:OMH Stock Forecast page.

OM Holdings’ ZAR 1.86bn Ntsimbintle Stake Sale Turns Unconditional

OM Holdings Limited has confirmed that the sale of its 26% interest in Ntsimbintle Mining Proprietary Limited to Exxaro Resources for ZAR 1.86 billion (about US$101.4 million) is now unconditional, with all suspensive conditions under the binding agreement fulfilled or waived and completion expected by 27 February 2026. Management says the transaction marks a key milestone in the group’s growth strategy, with the proceeds set to bolster OMH’s balance sheet, support capital structure optimisation, and create scope to return value to shareholders, potentially reshaping its financial flexibility and positioning within the global manganese and ferroalloys market.

The most recent analyst rating on (AU:OMH) stock is a Hold with a A$0.36 price target. To see the full list of analyst forecasts on OM Holdings Ltd. stock, see the AU:OMH Stock Forecast page.

OM Holdings’ ZAR 1.86bn Ntsimbintle Stake Sale Turns Unconditional

OM Holdings Limited has confirmed that the previously announced sale of its subsidiary OMH (Mauritius) Corp’s 26% stake in South Africa’s Ntsimbintle Mining Proprietary Limited, for ZAR 1.86 billion (around US$101.4 million), has now become unconditional after all suspensive conditions were either satisfied or waived. The completion, expected on or before 27 February 2026, follows the successful conclusion of a commercial marketing agreement for Tshipi manganese ore, signalling a key step in restructuring OM Holdings’ exposure to manganese mining assets while securing ongoing participation in the marketing of Tshipi’s production, with potential implications for the group’s capital allocation and commercial positioning in the global manganese ore trade.

The most recent analyst rating on (AU:OMH) stock is a Hold with a A$0.36 price target. To see the full list of analyst forecasts on OM Holdings Ltd. stock, see the AU:OMH Stock Forecast page.

OM Holdings Advances Sale of Tshipi Manganese Mine Stake

OM Holdings Limited has announced significant progress in selling its 26% interest in Ntsimbintle Mining Proprietary Limited to Exxaro Resources Limited, with key regulatory and shareholder approvals secured. This transaction, valued at approximately US$101.4 million, involves one of the largest manganese mines in South Africa, Tshipi Borwa Mine. The completion of the sale, expected in early 2026, marks a strategic shift for OM Holdings, potentially unlocking value from its long-term investment and impacting its future operations.

The most recent analyst rating on (AU:OMH) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OM Holdings Ltd. stock, see the AU:OMH Stock Forecast page.

OM Holdings Updates on Sale of Ntsimbintle Mining Stake

OM Holdings Limited has announced an update on the sale of its 26% interest in Ntsimbintle Mining Proprietary Limited for approximately US$101.4 million. The transaction has met several key conditions, including approvals from South African authorities and Ntsimbintle Holdings’ shareholders. The completion of the sale is expected in early 2026, pending the fulfillment of remaining conditions.

The most recent analyst rating on (AU:OMH) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OM Holdings Ltd. stock, see the AU:OMH Stock Forecast page.