OC Oerlikon Corporation AG (OERL) AI Stock Analysis

• Market Cap: CHF912.22M
• Dividend Yield: 6.33%
• Average Volume (3M): 573.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• 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: CHF3.23
• Price Target Upside: 2.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: CHF3.00 ▼(-5.06% Downside)

The overall stock score of 57 reflects a combination of mixed financial performance, bearish technical indicators, and valuation concerns. While the company demonstrates strong cash flow management and improving profitability margins, the declining revenue and negative P/E ratio are significant risks. The technical analysis suggests bearish momentum, further impacting the stock's attractiveness.

Positive Factors

Cash Flow Management

Strong cash generation capabilities highlight effective cash management, ensuring liquidity and financial flexibility for future investments.

Profitability Margins

Improving profitability margins indicate better cost management and operational efficiency, enhancing long-term financial health.

Equity Utilization

Improved return on equity suggests more effective use of shareholder funds, potentially leading to better returns for investors over time.

Negative Factors

Revenue Decline

Declining revenue trends may indicate challenges in market demand or competitive pressures, impacting long-term growth prospects.

Operational Efficiency

Zero EBIT reflects operational inefficiencies, which could hinder profitability and competitiveness if not addressed.

Leverage Concerns

Moderate leverage requires careful management to avoid financial strain, especially in a declining revenue environment.

OC Oerlikon Corporation AG Business Overview & Revenue Model

Company Description

OC Oerlikon Corporation AG is a global technology and engineering company based in Switzerland, specializing in surface solutions, polymer processing, and advanced materials. The company operates through two main segments: Surface Solutions and Manmade Fibers. Oerlikon's core products include coatings and surface technologies that enhance the durability and performance of components across various industries, as well as systems and equipment for the production of manmade fibers used in textiles and other applications.

How the Company Makes Money

OC Oerlikon generates revenue primarily through the sale of its advanced surface solutions and manmade fiber technologies. The Surface Solutions segment offers a range of services including coating solutions, which are applied to components to improve their resistance to wear and corrosion. This segment serves diverse industries such as automotive, aerospace, and industrial manufacturing. The Manmade Fibers segment provides systems and equipment for producing synthetic fibers, catering to the textile industry and related fields. Key revenue streams include direct sales of products, maintenance services, and technology licensing. Additionally, Oerlikon has formed strategic partnerships with major players in various industries, enhancing its market presence and driving revenue growth through collaborative innovations and enhanced customer 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	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: 3.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 3.16 is above the 20-day moving average (MA) of 3.00, above the 50-day MA of 2.87, and below the 200-day MA of 3.39, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 69.13 is Neutral, neither overbought nor oversold. The STOCH value of 86.74 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
KARN	70 Outperform	CHF2.21B	29.80	―	2.17%	11.43%	6.46%
SUN	69 Neutral	$4.45B	16.32	23.37%	3.03%	5.79%	13.20%
VACN	68 Neutral	$9.93B	44.46	32.09%	1.77%	19.22%	11.62%
BUCN	65 Neutral	CHF3.60B	15.95	―	3.07%	-11.64%	-24.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OERL	57 Neutral	CHF912.22M	-904.52	―	6.33%	-17.75%	83.94%
GF	54 Neutral	CHF4.62B	16.65	―	2.55%	-24.42%	32.48%

OC Oerlikon Corporation AG Corporate Events

Oerlikon Successfully Issues CHF 350 Million in Bonds

OC Oerlikon Corporation AG has successfully issued senior unsecured bonds totaling CHF 350 million in two tranches, with maturities in 2027 and 2030. The proceeds from these bonds will be used for general corporate purposes, including repaying outstanding financial liabilities, and have garnered broad investor interest. The bonds will be listed on the SIX Swiss Exchange, with provisional trading expected to start in September 2025.

The most recent analyst rating on (CH:OERL) stock is a Hold with a CHF3.30 price target. To see the full list of analyst forecasts on OC Oerlikon Corporation AG stock, see the CH:OERL Stock Forecast page.

Oerlikon Maintains Stability Amid Market Challenges, Adjusts 2025 Outlook

Oerlikon reported a stable order backlog in the first half of 2025 despite challenging market conditions, with growth in aerospace, defense, and medical technology sectors offsetting weaknesses in automotive and luxury goods. The company has initiated structural cost reduction measures to enhance profitability and adjusted its full-year forecast due to ongoing geopolitical tensions and market uncertainties. Oerlikon expects stable to slightly lower sales and an operating EBITDA margin between 17.5% and 17.0%, while continuing its transformation into a pure-play company and completing the divestment of Barmag.

The most recent analyst rating on (CH:OERL) stock is a Hold with a CHF4.30 price target. To see the full list of analyst forecasts on OC Oerlikon Corporation AG stock, see the CH:OERL Stock Forecast page.