OM Holdings Ltd. (OMH) AI Stock Analysis

• Market Cap: AU$206.37M
• Dividend Yield: 1.48%
• Average Volume (3M): 134.47K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.35
• 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: 138,867
• 30 Day Avg. Volume: 134,469
• PEG Ratio: -0.42
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 3.87
• 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: AU$0.50
• Price Target Upside: 85.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: AU$0.50 ▲(85.19% Upside)

OM Holdings Ltd. has a stable financial position with strong revenue growth and improved cash flow, but faces challenges in profitability and efficiency. The technical indicators suggest a bearish trend, and the valuation metrics highlight concerns about profitability and investor appeal.

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 its comprehensive operations in the manganese and ferroalloy industry. The company extracts manganese ore from its mining operations and processes it into various ferroalloy products, such as ferromanganese and silicomanganese, at its smelting facilities. The primary revenue streams come from selling these ferroalloys to steel manufacturers, which use them to enhance the strength and durability of steel. Additionally, OMH engages in the trading of manganese ore and ferroalloys, leveraging its global network to facilitate sales across international markets. The company's earnings are influenced by factors such as global steel production demands, manganese prices, and strategic partnerships with industrial clients and suppliers.

OM Holdings Ltd. Financial Statement Overview

Summary

OM Holdings Ltd. shows strong revenue growth and improved cash flow, indicating operational success. However, declining margins and return metrics highlight challenges in profitability and efficiency. The balance sheet is stable with manageable debt levels, but asset utilization and return generation need improvement.

Income Statement

OM Holdings Ltd. has shown a strong revenue growth rate with a notable increase from 2023 to 2024. Gross Profit Margin improved slightly, indicating better cost management. However, the Net Profit Margin remains relatively low due to high operating expenses, and EBIT and EBITDA margins have decreased from prior years, suggesting efficiency challenges.

Balance Sheet

The company maintains a moderate Debt-to-Equity ratio, reflecting a balanced funding structure. Return on Equity has decreased, indicating potential concerns in generating returns from equity. The Equity Ratio shows a stable capital structure with a consistent equity base relative to assets, supporting financial stability.

Cash Flow

OM Holdings Ltd. has achieved significant improvement in Free Cash Flow, turning from negative to positive, indicating better cash management and investment returns. The Operating Cash Flow to Net Income Ratio is strong, showing efficient cash generation from operations, although past fluctuations suggest potential volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	654.27M	589.24M	856.55M	754.49M	784.63M
Gross Profit	136.41M	112.99M	223.08M	199.00M	71.15M
EBITDA	76.06M	95.25M	151.37M	128.22M	63.30M
Net Income	15.03M	18.14M	67.84M	81.91M	5.35M
Balance Sheet
Total Assets	1.52B	940.94M	892.86M	1.30B	1.13B
Cash, Cash Equivalents and Short-Term Investments	109.71M	60.49M	62.87M	97.73M	48.09M
Total Debt	364.14M	270.81M	260.25M	416.73M	416.71M
Total Liabilities	841.91M	526.32M	482.84M	678.35M	654.48M
Stockholders Equity	673.08M	602.85M	399.17M	505.27M	399.64M
Cash Flow
Free Cash Flow	73.00M	-12.46M	146.30M	63.60M	30.38M
Operating Cash Flow	85.41M	9.87M	185.70M	72.61M	47.24M
Investing Cash Flow	-7.57M	-4.52M	-146.97M	9.54M	-11.30M
Financing Cash Flow	-76.30M	-18.11M	-53.19M	-34.70M	-36.09M

OM Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.27 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 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
GRR	83 Outperform	271.97M	5.93	5.52%	10.64%	-13.54%	-56.86%
FEX	72 Outperform	361.07M	65.54	―	2.06%	21.95%	-84.84%
RHI	66 Neutral	214.19M	23.46	―	2.84%	―	-94.07%
OMH	58 Neutral	AU$206.37M	14.59	-3.24%	1.48%	14.64%	-213.25%
AIS	55 Neutral	461.43M	10.17	―	―	6.70%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

OM Holdings Ltd. Corporate Events

OM Holdings Announces Director’s Share Acquisition

OM Holdings Limited has announced a change in the director’s interest, specifically involving Mr. Low Ngee Tong, who acquired 60,000 ordinary shares indirectly through on-market trades. This adjustment brings his total holdings to 58,801,231 shares held indirectly, and 10,200,000 shares held directly. This change reflects a strategic move in the company’s leadership structure, potentially impacting investor confidence and market perception.

OM Holdings Director Increases Shareholding

OM Holdings Limited has announced a change in the director’s interest in securities, specifically involving Low Ngee Tong. The director acquired 80,000 ordinary shares indirectly through an on-market trade, bringing his total indirect holdings to 58,741,231 shares. This transaction reflects the director’s strategic investment decisions within the company, potentially impacting shareholder perceptions and market confidence.

OM Holdings Reclassified on ASX, Shifts Focus to Smelting and Marketing

OM Holdings Limited has announced a change in its classification on the Australian Securities Exchange (ASX) from a ‘mining producing entity’ to reflect its evolved business focus on smelting, marketing, and exploration activities. This reclassification means the company will no longer submit quarterly production and market update reports, but will instead provide preliminary final and half-yearly reports. The company remains committed to transparent communication with stakeholders and will continue to provide updates on its operations.

Bryah Resources and OM Holdings Advance Manganese Project Amid Rising Demand

Bryah Resources Limited, in partnership with OM (Manganese) Ltd, has commenced a flora survey on its manganese mining licenses in the Bryah Basin, Western Australia. This move comes as manganese market demand and prices are on the rise, positioning the joint venture to advance its project towards production. OM (Manganese) Ltd, a subsidiary of OM Holdings Limited, has completed a $1.8 million earn-in to own 60% of the project, and will fund the ongoing study, highlighting the strategic importance of this venture in the strengthening manganese market.