OC Oerlikon Corporation AG (OERL) AI Stock Analysis

• Market Cap: CHF1.16B
• Dividend Yield: 6.26%
• Average Volume (3M): 573.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• 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: -6.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: CHF3.50 ▼(-1.96% 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 generation

Material improvement in operating cash flow and free cash flow shows strong cash conversion and working capital control. This durable cash generation supports reinvestment, service contracts, and debt servicing, increasing financial resilience over the next several quarters.

Improving profitability metrics

Rising net margin and higher ROE indicate better cost management and capital efficiency. Sustained margin improvement would allow the company to absorb cyclical shocks, fund R&D and services, and gradually build shareholder returns if management keeps structural cost discipline.

Diversified industrial business model

A multi-segment portfolio across manmade fibers, surface coatings and materials plus recurring service contracts spreads end-market risk. Structural exposure to aerospace, automotive and sustainable materials supports steady demand and product innovation benefits over a multi-quarter horizon.

Negative Factors

Declining revenue trend

Significant year-over-year revenue decline erodes scale advantages and pressures fixed-cost absorption. If top-line contraction persists, it undermines margin sustainability, reduces free cash flow potential growth, and constrains strategic investments over the medium term.

Moderate leverage

A debt-to-equity ratio above 1 and sub-30% equity ratio indicate material reliance on debt financing. This reduces financial flexibility, increases interest exposure, and may limit capital allocation for capex or M&A in a slowing revenue environment over the next several quarters.

Volatile operating profitability

Stable gross margins but a zero EBIT point to volatile operating leverage and inconsistent cost absorption. Lack of consistent operating profit weakens ability to fund innovations and service growth internally and raises execution risk absent sustained structural improvements.

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

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: 3.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 3.57 is above the 20-day moving average (MA) of 3.30, above the 50-day MA of 3.14, and above the 200-day MA of 3.31, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 74.56 is Negative, neither overbought nor oversold. The STOCH value of 88.18 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	CHF5.39B	19.74	23.37%	2.90%	5.79%	13.20%
KARN	74 Outperform	CHF2.22B	29.96	―	2.17%	11.43%	6.46%
VACN	71 Outperform	CHF13.03B	58.34	32.09%	1.63%	19.22%	11.62%
BUCN	65 Neutral	CHF3.58B	15.88	―	2.99%	-11.64%	-24.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OERL	57 Neutral	CHF1.16B	-1,181.29	―	6.26%	-17.75%	83.94%
GF	54 Neutral	CHF4.30B	15.50	―	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.