OC Oerlikon Corporation AG (OERL) AI Stock Analysis

• Market Cap: CHF1.21B
• Dividend Yield: 5.37%
• Average Volume (3M): 329.06K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.43
• Revenue Growth: -11.92%
• EPS Growth: 100.79%
• Country: CH
• Employees: 12,064
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 339,758,600
• 10 Day Avg. Volume: 351,704
• 30 Day Avg. Volume: 329,057
• PEG Ratio: -0.48
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.90
• 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: CHF4.10
• Price Target Upside: 9.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: CHF4.00 ▲(7.24%Upside)

OC Oerlikon Corporation AG scores 68. The company's strong cash flow and improving profitability are significant positives, offsetting concerns about declining revenue and operational efficiency. The stock's valuation is attractive, but technical indicators show weak momentum.

OC Oerlikon Corporation AG Business Overview & Revenue Model

Company Description

OC Oerlikon Corporation AG provides advanced materials, surface technologies, processing equipment, and services worldwide. The company operates through two segments, Surface Solutions and Polymer Processing Solutions. The Surface Solutions segment supplies advanced materials and surface technologies for components and tools used in range of industrial applications. The Polymer Processing Solutions segment offers solutions and systems used to manufacture manmade fibers that enable customers to produce synthetic fibers under the Oerlikon Barmag, Oerlikon Neumag, Oerlikon HRSflow, and Oerlikon Nonwoven bands. It also provides friction and wear, corrosion, electrical and thermal effects, electromagnetic effects, dimensional control, and other functional solutions; thermal spray equipment; system platforms; thermal spray coating services; laser cladding; brazing, pack diffusion, conductive fillers, metal or ceramic injection molding, additive manufacturing, laser cladding, plasma transferred arc, and weld hardfacing; and consulting, engineering, life cycle management, and smart plant solutions. The company serves clients in aerospace, automotive, energy, tooling, general, additive manufacturing, manmade fibers, and medical industries. OC Oerlikon Corporation AG was founded in 1907 and is headquartered in Pfäffikon, Switzerland.

How the Company Makes Money

OC Oerlikon Corporation AG generates revenue through the development, production, and sale of advanced materials and surface technologies across various industries. In the Surface Solutions segment, the company provides coating services and equipment that enhance the durability and performance of components, which are critical in high-performance environments such as automotive and aerospace. The Manmade Fibers segment generates revenue by supplying equipment and systems for the production of synthetic fibers, which are used in textiles, nonwovens, and other industrial applications. Oerlikon also engages in strategic partnerships and collaborations to expand its technological capabilities and market reach, contributing to its earnings through diversified and innovative solutions.

OC Oerlikon Corporation AG Financial Statement Overview

Summary

OC Oerlikon Corporation AG shows a mixed financial performance. Declining revenues are a concern, but profitability margins are improving. The balance sheet reveals moderate leverage with a decent equity base. Cash flows are robust, demonstrating good cash management. Overall, while there are areas of concern such as declining sales and operational efficiency, the company has strengths in cash flow generation and profitability improvements.

Income Statement

The company has experienced a decrease in total revenue over the last year, from $2.693 billion to $2.372 billion. Gross profit margin stands at 27.28%, which is stable but not exceptional. The net profit margin improved to 2.78% from 1.22% in the previous year, indicating better cost management. However, the EBIT and EBITDA margins show volatility, with EBIT at 0% due to zero EBIT in the latest year, which is a concern for operational efficiency. Overall, revenue trends show a decline, but profitability measures are improving slightly.

Balance Sheet

The company maintains a debt-to-equity ratio of 1.35, indicating moderate leverage. The return on equity has improved to 5.90%, showing better utilization of equity. Equity ratio is at 27.93%, suggesting a reasonable level of equity financing compared to total assets. The company's leverage is manageable, but the reliance on debt should be monitored.

Cash Flow

Operating cash flow increased significantly from $181 million to $272 million, reflecting strong cash generation capabilities. Free cash flow also improved substantially, indicating better cash management. The operating cash flow to net income ratio is 4.12, showing strong conversion of income to cash. The free cash flow to net income ratio is 2.26, indicating efficient cash flow management relative to net income growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.37B	2.69B	2.91B	2.65B	2.26B
Gross Profit	647.00M	651.00M	731.00M	640.00M	463.00M
EBITDA	369.00M	334.00M	393.00M	451.00M	279.00M
Net Income	66.00M	33.00M	89.00M	164.00M	35.00M
Balance Sheet
Total Assets	4.00B	4.10B	4.09B	4.52B	3.49B
Cash, Cash Equivalents and Short-Term Investments	412.00M	541.00M	480.00M	627.00M	433.00M
Total Debt	1.51B	1.69B	947.00M	961.00M	371.00M
Total Liabilities	2.87B	3.06B	2.77B	3.05B	2.13B
Stockholders Equity	1.12B	1.01B	1.27B	1.42B	1.32B
Cash Flow
Free Cash Flow	149.00M	67.00M	90.00M	184.00M	184.00M
Operating Cash Flow	272.00M	181.00M	221.00M	315.00M	301.00M
Investing Cash Flow	-86.00M	-504.00M	-163.00M	-419.00M	-113.00M
Financing Cash Flow	-324.00M	425.00M	-165.00M	281.00M	-418.00M

OC Oerlikon Corporation AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:OERL, the sentiment is Positive. The current price of 3.73 is above the 20-day moving average (MA) of 3.68, above the 50-day MA of 3.69, and above the 200-day MA of 3.65, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 86.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:OERL.

OC Oerlikon Corporation AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIKN	73 Outperform	CHF275.10M	10.03	12.97%	2.43%	1.03%	-3.17%
OERL	68 Neutral	CHF1.21B	18.36		5.37%	-11.92%	100.79%
SUN	66 Neutral	CHF4.82B	18.43	22.45%	2.45%	7.58%	14.41%
Sector *	61 Neutral	C$6.56B	9.41	3.50%	2.82%	6.99%	-11.09%
RIEN	52 Neutral	CHF309.07M	29.69		2.89%	-39.44%	-85.89%
GF	52 Neutral	CHF5.14B	24.00		1.76%	-3.33%	-8.90%
FTON	51 Neutral	CHF176.08M	―	-9.50%	2.85%	-15.11%	-421.52%

OC Oerlikon Corporation AG Corporate Events

Oerlikon Reports Stable Q1 2025 Amid Market Challenges and Strategic Adjustments

OC Oerlikon Corporation AG reported stable order intake in the first quarter of 2025 despite challenging market conditions, with revenue slightly lower than the previous year. The company is implementing its Pureplay strategy by selling Barmag to Rieter, which is now classified as discontinued operations. Oerlikon has updated its 2025 outlook to reflect the Pureplay scope, acknowledging macroeconomic uncertainties from potential trade conflicts. The company remains focused on innovation and cost efficiency, with resilience supported by strong performance in aerospace, HRSflow, and toolmaking sectors.

Oerlikon Sells Barmag to Rieter to Focus on Surface Technologies

Oerlikon has announced the sale of its Barmag textile machinery business for synthetic fibers to Rieter, marking a significant step in its strategy to become a pureplay surface technology company. The transaction, valued at up to CHF 950 million, will allow Oerlikon to focus on its core competencies and drive growth in surface technologies, while optimizing value for stakeholders and enhancing Rieter’s presence in the synthetic fibers sector.