Orica Limited (ORI) AI Stock Analysis

• Market Cap: $9.97B
• Dividend Yield: 2.53%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 104.0
• Beta (1Y): 0.83
• Revenue Growth: 4.50%
• EPS Growth: -81.89%
• Country: AU
• Employees: 14,000
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 0.52
• Shares Outstanding: 475,987,030
• 10 Day Avg. Volume: 2,131,744
• 30 Day Avg. Volume: 1,402,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: 10.23
• 1Y Price Target: $23.58
• Price Target Upside: 12.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: AU$22.50 ▲(7.30% Upside)

Orica Limited's overall stock score is primarily driven by its strong financial performance, which is offset by technical indicators suggesting potential short-term weakness and a high P/E ratio indicating overvaluation. The company's robust profitability and revenue growth are significant strengths, but the valuation concerns and bearish technical signals warrant caution.

Orica Limited Business Overview & Revenue Model

Company Description

Orica Limited manufactures, distributes, and sells commercial blasting systems, mining and tunnelling support systems, and various chemical products and services in Australia, Peru, the United States, and internationally. The company provides 4D bulk explosives systems, packaged explosives, initiating systems, boosters, and seismic explosive ranges; technical services and solutions; and supplementary services. It also offers automation solutions, including Avatel, a machine equipped with underground development charging system; and secondary breakage and hang up blasting, a tele-remote blasting solution. In addition, the company provides mining chemical products, such as cyanide sparges, emulsifiers, and sodium cyanide, as well as PRO services; digitally enabled benchmarks and insights at various stages of the blasting process; and nitrogen fertilizers, which includes urea ammonium nitrate and ammonia. Further, it offers resources to explore the use of chemical energy in blasting, blasting fundamentals, and properties of explosives and blasting principles; training courses; and geotechnical deformation and convergence monitoring solutions. The company serves surface coal, surface metal, iron ore, quarrying, underground mining and construction, construction, civil infrastructure, oil and gas, and agriculture markets. Orica Limited was founded in 1874 and is headquartered in East Melbourne, Australia.

How the Company Makes Money

Orica Limited makes money primarily through the sale of its commercial explosives and blasting systems. The company's revenue streams are largely derived from the mining and infrastructure sectors, where its products are used to extract minerals and facilitate construction projects. Orica provides value-added services such as blast design and optimization, which help improve the efficiency and safety of its customers' operations. Additionally, Orica's partnerships and long-term contracts with leading mining companies ensure a steady flow of income. The company also invests in research and development to innovate its product offerings and maintain a competitive edge in the market.

Orica Limited Financial Statement Overview

Summary

Orica Limited demonstrates strong financial performance with solid profitability metrics and revenue growth. The balance sheet is stable with moderate leverage, although attention to debt management is advised. Cash flows are robust, but the decline in free cash flow growth requires monitoring to maintain liquidity.

Income Statement

Orica Limited has shown strong financial performance with a notable gross profit margin of 53.1% and a significant improvement in net profit margin to 6.8% for 2024. The EBIT and EBITDA margins are also robust at 9.6% and 17.7%, respectively. The revenue growth rate for 2024 was 8.4%, indicating a healthy upward trend in revenue generation. Overall, the company's profitability metrics are solid, with improving margins and growth.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.57, indicating moderate leverage. The return on equity stands at 11.8%, showcasing efficient management of equity capital. The equity ratio is at 46.5%, suggesting a balanced capital structure. Although the company has managed its liabilities well, the growing total debt and reduced cash reserves over time may pose challenges if not managed prudently.

Cash Flow

Orica Limited's cash flow statement indicates strong cash generation capabilities with an operating cash flow to net income ratio of 1.54, highlighting efficient conversion of income into cash. The free cash flow to net income ratio is 0.67, showing positive but moderate free cash flow generation. However, the free cash flow growth rate has declined by 23.6% compared to the previous year, which may require attention to maintain liquidity and investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.66B	7.69B	7.95B	7.10B	5.21B	5.14B
Gross Profit	3.11B	4.08B	3.72B	3.23B	2.76B	2.29B
EBITDA	1.03B	1.36B	906.10M	751.00M	276.80M	836.50M
Net Income	524.60M	524.60M	295.70M	60.10M	-173.80M	82.30M
Balance Sheet
Total Assets	9.60B	9.60B	8.88B	8.47B	7.46B	8.41B
Cash, Cash Equivalents and Short-Term Investments	580.70M	580.70M	1.15B	1.26B	551.00M	920.50M
Total Debt	2.52B	2.52B	2.37B	2.41B	2.32B	3.04B
Total Liabilities	5.05B	5.05B	4.83B	4.74B	4.67B	5.47B
Stockholders Equity	4.46B	4.46B	3.99B	3.69B	2.73B	2.89B
Cash Flow
Free Cash Flow	372.20M	351.10M	459.60M	13.00M	295.70M	-246.70M
Operating Cash Flow	807.50M	807.50M	898.70M	362.30M	618.90M	144.70M
Investing Cash Flow	-1.71B	-1.71B	-664.70M	-229.20M	-195.90M	-527.70M
Financing Cash Flow	377.40M	377.40M	-350.90M	515.50M	-748.60M	935.90M

Orica Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ORI, the sentiment is Neutral. The current price of 20.97 is below the 20-day moving average (MA) of 21.52, below the 50-day MA of 21.22, and above the 200-day MA of 18.27, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ORI.

Orica Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORI	66 Neutral	$9.97B	103.97	2.30%	2.53%	4.50%	-81.89%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%
ICPVF	―	$3.51B	―	-3.14%	3.04%	―	―

Orica Limited Corporate Events

Orica Limited Updates on Share Buy-Back Progress

Orica Limited has announced an update on its ongoing share buy-back program, revealing that a total of 13,666,430 ordinary fully paid securities have been repurchased, with 493,111 bought back on the previous day. This buy-back initiative is part of Orica’s strategy to optimize its capital structure and return value to shareholders, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$24.04 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Buy-Back Program

Orica Limited has announced an update regarding its ongoing on-market buy-back program, detailing the acquisition of 476,086 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 12,697,233. This buy-back initiative reflects Orica’s strategic efforts to optimize its capital structure and potentially enhance shareholder value, indicating a proactive approach to managing its financial resources and market positioning.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$24.76 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Market Buy-Back Program

Orica Limited has announced an update on its ongoing on-market buy-back program, revealing that a total of 12,250,792 ordinary fully paid securities have been bought back prior to the previous day, with an additional 446,441 securities acquired on the previous day. This buy-back initiative is part of Orica’s strategy to optimize its capital structure and deliver value to its shareholders, reflecting confidence in the company’s financial health and future prospects.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$24.76 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Share Buy-Back Program

Orica Limited has announced an update regarding its ongoing share buy-back program, with a total of 877,302 ordinary fully paid securities bought back on the previous day, adding to the cumulative total of 11,373,490 securities repurchased. This strategic move is part of Orica’s efforts to optimize its capital structure and potentially enhance shareholder value, reflecting confidence in the company’s financial health and future prospects.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$20.65 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Share Buy-Back Progress

Orica Limited has announced an update regarding its ongoing share buy-back program, with a total of 11,266,599 securities bought back before the previous day and an additional 106,891 securities acquired on the previous day. This buy-back initiative is part of Orica’s strategy to enhance shareholder value and optimize its capital structure, reflecting the company’s confidence in its financial position and future prospects.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$22.50 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.