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Oil-Dri Corporation Of America (ODC)
NYSE:ODC
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Oil-Dri Of America
(NYSE:ODC)
80Outperform
Oil-Dri Of America (ODC) vs. S&P 500 (SPY)
Market Cap
$617.98M
Dividend Yield1.33%
Average Volume (3M)45.58K
Price to Earnings (P/E)14.9
Beta (1Y)0.68
Revenue Growth8.24%
EPS Growth4.69%
CountryUS
Employees949
SectorBasic Materials
Sector Strength59
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.08
Shares Outstanding10,320,217
10 Day Avg. Volume58,160
30 Day Avg. Volume45,582
Financial Highlights & Ratios
PEG Ratio3.17
Price to Book (P/B)N/A
Price to Sales (P/S)1.44
Price to Cash Flow (P/CF)7.80
P/FCF Ratio7.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Oil-Dri Of America Business Overview & Revenue Model
Company DescriptionOil-Dri Corporation of America, together with its subsidiaries, develops, manufactures, and markets sorbent products in the United States and internationally. It operates in two segments, Retail and Wholesale Products Group; and Business to Business Products Group. The company provides agricultural and horticultural products, including mineral-based absorbent products that serve as chemical carriers, drying agents, and growing media under the Agsorb, Verge, and Flo-Fre brand names. It also offers animal health and nutrition products for the livestock industry under the Amlan, Calibrin, Varium, Neoprime, MD-09, and Pel-Unite and Pel-Unite Plus brand names; and bleaching clay and purification aid products for bleaching, purification, and filtration applications under the Pure-Flo, Perform, Select, and Ultra-Clear brand names. In addition, the company provides cat litter products, such as scoopable and non-clumping litters under the Cat's Pride and Jonny Cat brand names; industrial and automotive sorbent products from clay, polypropylene, and recycled materials that absorb oil, acid, paint, ink, water, and other liquids under the Oil-Dri brand name; and sports products for use on baseball, softball, football, and soccer fields under the Pro's Choice brand name. Its customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, and sports field product and sports turf material users; processors and refiners of edible oils, petroleum-based oils, and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Oil-Dri Corporation of America was founded in 1941 and is based in Chicago, Illinois.
How the Company Makes MoneyOil-Dri of America primarily generates revenue through the sale of its sorbent products across multiple market segments. The pet care segment, particularly through the sale of cat litter products, represents a significant portion of the company's revenue. Additionally, Oil-Dri earns income from its industrial and environmental products, which include absorbents used for oil and chemical spills, as well as fluid purification products used in the agricultural sector. The company's revenue model also benefits from its established distribution network and partnerships with major retailers and industrial clients, enhancing its market reach and sales potential.
Oil-Dri Of America Financial Statement Overview
Summary
Oil-Dri Of America presents a strong financial profile with impressive profitability and growth metrics. The company has managed to improve its margins and maintain a solid balance sheet position, albeit with some reporting limitations in the latest period. Cash flows are robust, supporting its operational and investment activities effectively. The overall financial health of the company is commendable, positioning it well for future growth and stability.Income Statement
Oil-Dri Of America has demonstrated strong revenue growth over the years, with a notable increase in both gross and net profit margins. The TTM figures show a gross profit margin of approximately 29.7% and a net profit margin of about 9.8%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are solid, reflecting robust operational performance. The company's steady revenue growth rate signifies a positive trajectory.88
Very Positive
Balance Sheet
The balance sheet shows a strong equity position, with a debt-free status in the TTM period, enhancing financial stability. Historically, the debt-to-equity ratio was manageable, and the return on equity has improved significantly, reaching around 21.6% in the TTM. However, the equity ratio is not calculable in the latest period due to missing stockholders' equity data, which could suggest potential reporting issues.75
Positive
Cash Flow
The cash flow statement reflects healthy operational cash generation with a positive free cash flow, despite some fluctuations in capital expenditures. The operating cash flow to net income ratio is strong, and the free cash flow to net income ratio indicates efficient cash management. The year-over-year free cash flow growth rate is substantial, showcasing effective capital utilization.82
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 465.34M | 437.59M | 413.02M | 348.59M | 304.98M | 283.23M | Gross Profit |
| 138.39M | 125.09M | 103.23M | 62.52M | 65.24M | 75.82M | EBIT |
| 62.00M | 51.65M | 41.04M | 12.58M | 13.04M | 24.83M | EBITDA |
| 82.27M | 70.74M | 51.67M | 20.41M | 28.27M | 37.46M | Net Income Common Stockholders |
| 45.60M | 39.43M | 29.55M | 5.67M | 11.11M | 18.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 19.95M | 23.48M | 31.75M | 16.30M | 24.59M | 40.89M | Total Assets |
| 151.34M | 354.61M | 286.24M | 249.61M | 227.57M | 235.88M | Total Debt |
| 16.80M | 70.72M | 42.51M | 32.80M | 8.88M | 9.85M | Net Debt |
| 701.00K | 47.24M | 10.76M | 16.50M | -15.71M | -31.04M | Total Liabilities |
| 59.19M | 144.02M | 109.16M | 99.26M | 68.33M | 87.92M | Stockholders Equity |
| 92.15M | 210.59M | 177.08M | 150.35M | 159.23M | 147.96M |
| Cash Flow | Free Cash Flow | ||||
| 10.13M | 28.31M | 25.40M | -12.99M | -5.20M | 27.72M | Operating Cash Flow |
| 44.39M | 60.31M | 49.76M | 9.84M | 13.64M | 42.46M | Investing Cash Flow |
| -78.49M | -76.12M | -24.57M | -22.81M | -18.83M | -14.68M | Financing Cash Flow |
| -1.57M | 8.33M | -9.52M | 4.70M | -11.32M | -8.75M |
Oil-Dri Of America Technical Analysis
Neutral
45.70
Price Trends
44.38
Positive
41.52
Positive
37.07
Positive
Market Momentum
0.56
Positive
49.37
Neutral
29.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODC, the sentiment is Neutral. The current price of 45.7 is below the 20-day moving average (MA) of 46.74, above the 50-day MA of 44.38, and above the 200-day MA of 37.07, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 29.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ODC.
Oil-Dri Of America Risk Analysis
Oil-Dri Of America disclosed 33 risk factors in its most recent earnings report. Oil-Dri Of America reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oil-Dri Of America Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $617.98M | 14.86 | 20.07% | 1.33% | 8.24% | 4.69% | |
75 Outperform | $10.05B | 11.34 | 16.11% | 3.74% | 1.91% | 2.94% | |
68 Neutral | $2.22B | 19.29 | 8.49% | 1.50% | -5.82% | 3.75% | |
65 Neutral | $1.25B | 25.19 | 4.22% | 2.73% | -6.26% | 24.94% | |
61 Neutral | $2.97B | 27.59 | 6.35% | 1.62% | 0.99% | -27.62% | |
57 Neutral | $2.78B | 21.03 | 0.18% | 2.75% | -4.35% | -115.63% | |
47 Neutral | $2.66B | -3.14 | -22.17% | 3.33% | 3.73% | -29.29% |
* Basic Materials Sector Average
Performance Comparison
ODC
Oil-Dri Of America
45.70
9.80
27.30%
ASH
Ashland
59.01
-36.24
-38.05%
EMN
Eastman Chemical
87.05
-9.92
-10.23%
FUL
H.B. Fuller Company
54.77
-23.21
-29.76%
KWR
Quaker Chemical
125.50
-75.00
-37.41%
SCL
Stepan Company
55.33
-31.28
-36.12%
Oil-Dri Of America Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 0.24% | Next Earnings Date: Jun 5, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, including significant profit growth, sales increases in key product areas, and successful debt reduction. These positive outcomes were somewhat offset by challenges such as a higher effective tax rate and potential tariff impacts. Overall, the company is optimistic about its future growth and operational efficiency.Highlights
Significant Profit Growth
Despite a 30% decrease in tonnage compared to 2006, Oil-Dri achieved $75 million in gross profit this quarter, a 7.5 times increase over the $9.8 million in gross profit from 2006.
Double-Digit Sales Growth
Oil-Dri experienced double-digit sales growth in its Fluids Purification and Animal Health product groups, contributing to an 11% increase in gross margin year-over-year.
Successful Debt Reduction
The company paid off the remaining $5 million of short-term debt on its revolving credit facility, leaving it undrawn and available for growth opportunities.
Recognition for Leadership
Susan Kreh, CFO, was named CFO of the Year for mid-sized public companies in Chicago, highlighting the effective financial management of the company.
Lowlights
Higher Effective Tax Rate
The effective tax rate increased to 21% in the second quarter of fiscal 2025 from 16% in the second quarter of fiscal 2024, due to the growth of crystal cat litter products which do not qualify for a depletion deduction.
Potential Tariff Challenges
The company is monitoring potential tariff impacts, particularly related to operations and sales within the United States, although direct exposure is believed to be limited.
Company Guidance
During the Q2 Fiscal 2025 earnings call, Oil-Dri provided optimistic guidance, highlighting several key financial metrics and strategic initiatives. The company saw a significant increase in gross profit, achieving $75 million, which is 7.5 times more than the $9.8 million made in the comparable quarter in 2006, despite a 30% reduction in tonnage. Oil-Dri's sales doubled to $51 million compared to the previous high in 2006. The growth was driven by double-digit sales increases in strategic areas such as Fluids Purification and Animal Health products, as well as the successful integration of crystal cat litter products. Gross margin growth improved by 11% year-over-year, although the effective tax rate increased to 21% from 16% due to the lack of depletion deductions for high-value products. The company generated $22 million in EBITDA, which facilitated debt repayment and investments in strategic manufacturing initiatives. Additionally, Oil-Dri maintained strong operational efficiency and service levels, allowing it to mitigate potential tariff impacts effectively. The company continues to focus on capital allocation priorities, including potential M&A opportunities, manufacturing infrastructure investment, and maintaining dividends.Oil-Dri Of America Corporate Events
Executive/Board Changes
Oil-Dri of America Appoints New Vice President
Positive
Mar 17, 2025
On March 17, 2025, Oil-Dri Corporation of America announced the appointment of Jonathan Blake as Vice President, Corporate Controller, and principal accounting officer. Blake, who brings over 25 years of experience in accounting and finance, will lead the company’s accounting and tax functions, reporting directly to CFO Susan M. Kreh. His expertise is expected to support Oil-Dri’s growth and enhance its financial reporting operations, as the company continues to drive efficiencies across its business.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.