OC Oerlikon Corporation AG (OERL) AI Stock Analysis

• Market Cap: CHF1.24B
• Dividend Yield: 6.26%
• Average Volume (3M): 573.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -17.75%
• EPS Growth: 83.94%
• Country: CH
• Employees: 12,064
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 339,758,600
• 10 Day Avg. Volume: 541,486
• 30 Day Avg. Volume: 573,808
• PEG Ratio: 0.17
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 7.66
• 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: CHF3.33
• Price Target Upside: -12.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: CHF4.00 ▲(4.71% Upside)

The score is driven primarily by mixed financial performance—strong cash flow improvement and better profitability, offset by declining revenue and a concerning zero EBIT level. Technicals are supportive but overheated (high RSI/Stoch), tempering the outlook. Valuation is helped by the high dividend yield, but the negative P/E reduces confidence in earnings-based valuation.

Positive Factors

Strong cash generation

Material improvement in operating and free cash flow provides durable internal funding for capex, R&D, dividends or debt reduction. High OCF-to-net-income (4.12) indicates quality of earnings and long-term ability to self-fund investments and weather cyclical downturns.

Diversified business and recurring services

Multiple product lines and recurring service/maintenance contracts build revenue resilience and customer lock-in. Oerlikon's mix across Industrial Solutions, Manmade Fibers and Surface Solutions plus strategic partnerships and R&D supports steady aftermarket income and structural demand for advanced materials.

Improving profitability metrics

Rising net margin and improved ROE reflect better cost control and capital efficiency despite revenue pressures. Sustained margin improvement increases free cash generation and strengthens the firm's capacity to reinvest and maintain shareholder distributions over the medium term.

Negative Factors

Declining revenue trend

A sizable top-line contraction reduces scale benefits and may signal lost market share or softer end-market demand. If the revenue base does not stabilize, margin recovery and long-term reinvestment capacity could be constrained, making growth targets harder to achieve over coming quarters.

Zero EBIT in latest year

Zero EBIT highlights fragile operational profitability and limited buffer for absorbing costs or investing in growth. Persistent near-zero operating profits would heighten reliance on non-operating items or cash reserves, reducing flexibility to pursue strategic initiatives or withstand cyclical shocks.

Moderate leverage and limited equity cushion

Above-average leverage and a sub-30% equity ratio imply meaningful reliance on debt financing. In a period of revenue weakness, interest and principal obligations could constrain discretionary spending, limit strategic optionality, and increase refinancing risk if liquidity conditions deteriorate.

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 generates revenue through multiple streams, primarily by providing high-value industrial solutions and services. Key revenue streams include the sale of equipment and systems for manmade fiber production, surface coatings, and advanced materials. The company also earns income from service contracts and maintenance agreements, which are crucial for ongoing customer relationships and long-term revenue stability. Strategic partnerships with leading manufacturers and investments in research and development allow OC Oerlikon to continuously innovate and expand its product portfolio, driving profitability. Additionally, global demand for sustainable and high-performance materials enhances its market position and revenue potential.

OC Oerlikon Corporation AG Financial Statement Overview

Summary

Mixed fundamentals: revenue declined (from $2.693B to $2.372B) and EBIT is 0% in the latest year, but net margin improved (2.78% vs 1.22%), leverage is moderate (D/E 1.35, equity ratio 27.93%), and cash generation is strong with higher operating cash flow ($272M vs $181M) and improved free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.99B	2.37B	2.69B	2.91B	2.65B	2.26B
Gross Profit	537.00M	647.00M	651.00M	731.00M	640.00M	463.00M
EBITDA	253.00M	373.00M	334.00M	393.00M	451.00M	279.00M
Net Income	-1.00M	66.00M	33.00M	89.00M	164.00M	35.00M
Balance Sheet
Total Assets	3.68B	4.00B	4.10B	4.09B	4.52B	3.49B
Cash, Cash Equivalents and Short-Term Investments	180.00M	412.00M	541.00M	477.00M	619.00M	433.00M
Total Debt	1.51B	1.51B	1.69B	947.00M	961.00M	371.00M
Total Liabilities	2.76B	2.87B	3.06B	2.77B	3.05B	2.13B
Stockholders Equity	907.00M	1.12B	1.01B	1.27B	1.42B	1.32B
Cash Flow
Free Cash Flow	67.00M	149.00M	98.00M	90.00M	184.00M	184.00M
Operating Cash Flow	133.00M	272.00M	181.00M	221.00M	315.00M	301.00M
Investing Cash Flow	-89.00M	-86.00M	-504.00M	-155.00M	-419.00M	-113.00M
Financing Cash Flow	-61.00M	-324.00M	425.00M	-182.00M	266.00M	-418.00M

OC Oerlikon Corporation AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.82
• 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 3.82 is above the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.36, and above the 200-day MA of 3.32, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 68.69 is Neutral, neither overbought nor oversold. The STOCH value of 90.32 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
SUN	75 Outperform	$5.84B	21.40	23.37%	2.90%	5.79%	13.20%
KARN	74 Outperform	CHF2.06B	27.78	―	2.17%	11.43%	6.46%
VACN	71 Outperform	CHF14.54B	65.09	32.09%	1.63%	19.22%	11.62%
OERL	66 Neutral	CHF1.24B	-1,238.71	―	6.26%	-17.75%	83.94%
BUCN	65 Neutral	CHF3.82B	16.95	―	2.99%	-11.64%	-24.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GF	54 Neutral	CHF4.40B	15.87	―	2.53%	-24.42%	32.48%

OC Oerlikon Corporation AG Corporate Events

Oerlikon Clears Final Hurdle to Sell Barmag, Completing Shift to Pure‑Play Surface Technologies

Oerlikon has obtained all regulatory approvals for the sale of its Barmag business unit to textile machinery maker Rieter, with closing scheduled for early February 2026 at an enterprise value of CHF 850 million, excluding a potential earn‑out of up to CHF 100 million. The divestment marks the final step in Oerlikon’s strategic transformation into a pure‑play surface technology company, with proceeds earmarked for debt reduction and general corporate purposes, and will see Barmag CEO Georg Stausberg leave Oerlikon’s executive committee to join Rieter’s. After completion, Oerlikon will focus exclusively on expanding its surface technologies and advanced materials franchise across key end markets from automotive and aerospace to semiconductors, leveraging its strong brands and technology portfolio to reinforce its position as a global market and technology leader.

The most recent analyst rating on (CH:OERL) stock is a Buy with a CHF3.70 price target. To see the full list of analyst forecasts on OC Oerlikon Corporation AG stock, see the CH:OERL Stock Forecast page.

Oerlikon Reports Strong Q3 Performance and Strategic Leadership Changes

Oerlikon reported a strong performance in Q3 2025, with an 11% increase in order intake and a 2.9% rise in sales, despite challenges in end markets and geopolitical uncertainties. The company successfully placed CHF 350 million in senior bonds, reinforcing financial stability and confidence in its long-term strategy. The appointment of Marco Freidl and Dr. Andreas Weiss to the Executive Committee marks a strategic move towards Oerlikon’s pureplay future, with the divestment of Barmag expected to complete in Q4 2025.

The most recent analyst rating on (CH:OERL) stock is a Hold with a CHF3.00 price target. To see the full list of analyst forecasts on OC Oerlikon Corporation AG stock, see the CH:OERL Stock Forecast page.