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Oil-Dri Corporation Of America (ODC)
NYSE:ODC
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Oil-Dri Of America
(NYSE:ODC)
Rating:82Outperform
Price Target:
$67.00
â–²(11.06%Upside)
Oil-Dri Of America (ODC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$819.40M
Dividend Yield1.03%
Average Volume (3M)64.21K
Price to Earnings (P/E)17.5
Beta (1Y)0.44
Revenue Growth9.92%
EPS Growth17.12%
CountryUS
Employees949
SectorBasic Materials
Sector Strength70
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.81
Shares Outstanding10,368,372
10 Day Avg. Volume104,653
30 Day Avg. Volume64,210
Financial Highlights & Ratios
PEG Ratio-2.57
Price to Book (P/B)3.26
Price to Sales (P/S)0.00
P/FCF Ratio18.93
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit6.26
Enterprise Value/Ebitda2.76
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 of America Corporation is a leading manufacturer and supplier of sorbent mineral products, primarily serving the consumer, industrial, automotive, agricultural, and fluid purification markets. Founded in 1941 and headquartered in Chicago, Illinois, the company is renowned for its absorbent products, including cat litter, oil and grease absorbents, and agricultural carriers. It operates through two main segments: Retail and Wholesale Products Group and Business to Business Products Group, offering a diverse range of products that cater to both household and commercial needs.
How the Company Makes MoneyOil-Dri of America Corporation generates revenue through the sale of its sorbent mineral products across various sectors. The Retail and Wholesale Products Group segment contributes significantly to its earnings by providing consumer products like cat litter under multiple brand names, including Cat's Pride and Jonny Cat. This segment leverages partnerships with major retail chains and distributors to ensure product availability to end consumers. The Business to Business Products Group segment focuses on industrial and commercial applications, supplying products used in oil and grease absorption, agricultural carriers, and fluid purification processes. Revenue in this segment is bolstered by partnerships with industrial clients and agricultural businesses that utilize Oil-Dri's specialized sorbents in their operations. The company's ability to innovate and maintain strong relationships with key distributors and retailers is crucial to its financial performance.
Oil-Dri Of America Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q3-2025)
| % Change Since: 18.55%|
Next Earnings Date:Oct 09, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with a record net income, significant dividend increase, and strong performance in various segments despite some challenges such as flat revenues in the Animal Health and Nutrition segment and rising natural gas prices. The successful Ultra Pet acquisition and renewable diesel growth further contributed to a positive outlook.Q3-2025 Updates
Positive Updates
Record Net Income
Oil-Dri achieved a net income of $11.644 million, greater than all but 8 of their past 84 fiscal years. Through 9 months, they are ahead of all previous fiscal years.
Significant Dividend Increase
The Board raised the dividend by 16%, marking the 22nd consecutive year of dividend increases.
Strong Cash Flow
Year-to-date net cash provided by operating activities was $55 million, a 49% increase compared to the first 9 months of fiscal year 2024.
Successful Ultra Pet Acquisition
The acquisition hit its 1-year anniversary, performing well and hitting internal financial benchmarks with strong cost synergies.
Renewable Diesel Growth
Despite a 12% decline in U.S. renewable diesel production, Oil-Dri's relevant segment grew by 13% due to securing new business.
Negative Updates
Flat Animal Health and Nutrition Segment
Revenues for the Animal Health and Nutrition segment were flat year-over-year this quarter, attributed to volatility from tariffs and logistic challenges.
Loss of Private Label Account
Oil-Dri lost a significant private label clay cat litter account, though they expressed confidence in regaining it long-term.
Natural Gas Price Concerns
Concerns about rising natural gas prices due to increased demand for LNG exports and other factors, with limited alternatives available.
Company Guidance
During the Oil-Dri Third Quarter Fiscal 2025 Earnings Discussion, the company's financial performance was highlighted, including a record net income of $11.644 million, surpassing all but eight of the previous 84 fiscal years. The company plans to invest approximately $32 million this year and next in capital, doubling its past five-year spending to $143 million from Fiscal Year 2022 to 2026, compared to $78 million in the prior five-year period. The Board raised the dividend by 16%, the 22nd consecutive increase, reflecting confidence in Oil-Dri's strong financial position. Year-to-date, net cash from operating activities increased 49% to $55 million, supporting strategic capital allocation focused on long-term business sustainability, potential M&A opportunities, and shareholder returns. The effective tax rate for the fiscal year is estimated at 19%, slightly lower than last year's 20.5%, due to a one-time solar investment tax credit.Oil-Dri Of America Financial Statement Overview
Summary
Oil-Dri Of America demonstrates solid financial health with strong revenue growth, improving margins, and effective cash management. The balance sheet is stable, reflecting prudent leverage levels.Income Statement
Oil-Dri Of America has demonstrated strong revenue growth with an increasing trend over several years. The gross profit margin is healthy, indicating effective cost management. Net profit margin and EBIT margin have shown improvement, reflecting enhanced operational efficiency. However, there is room for improvement in EBITDA margin to further strengthen profitability.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a consistent increase in stockholders' equity, reflecting reinvestment in the business. The debt-to-equity ratio is reasonable, suggesting manageable leverage levels. A strong equity ratio indicates financial stability, although a further reduction in total liabilities could enhance financial resilience.78
Positive
Cash Flow
Operating cash flow has increased significantly, supporting the company's liquidity position. Free cash flow growth is strong, indicating efficient capital expenditure management. The operating cash flow to net income ratio suggests robust cash generation in relation to earnings. Continued focus on free cash flow generation will be key to sustaining financial flexibility.82
Very Positive
| Breakdown | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 474.06M | 437.59M | 413.02M | 348.59M | 304.98M | 283.23M |
| Gross Profit | 141.27M | 125.09M | 103.23M | 62.52M | 65.24M | 75.82M |
| EBITDA | 87.35M | 70.74M | 51.67M | 20.41M | 28.27M | 37.46M |
| Net Income | 49.47M | 39.43M | 29.55M | 5.67M | 11.11M | 18.90M |
Balance Sheet | ||||||
| Total Assets | 369.54M | 354.61M | 286.24M | 249.61M | 227.57M | 235.88M |
| Cash, Cash Equivalents and Short-Term Investments | 36.48M | 23.48M | 31.75M | 16.30M | 24.59M | 40.89M |
| Total Debt | 57.21M | 70.72M | 42.51M | 32.80M | 8.88M | 9.85M |
| Total Liabilities | 122.68M | 144.02M | 109.16M | 99.26M | 68.33M | 87.92M |
| Stockholders Equity | 246.86M | 210.59M | 177.08M | 150.35M | 159.23M | 147.96M |
Cash Flow | ||||||
| Free Cash Flow | 45.61M | 28.31M | 25.40M | -12.99M | -5.20M | 27.72M |
| Operating Cash Flow | 78.37M | 60.31M | 49.76M | 9.84M | 13.64M | 42.46M |
| Investing Cash Flow | -77.09M | -76.12M | -24.57M | -22.81M | -18.83M | -14.68M |
| Financing Cash Flow | -11.66M | 8.33M | -9.52M | 4.70M | -11.32M | -8.75M |
Oil-Dri Of America Technical Analysis
Positive
60.33
Price Trends
50.71
Positive
47.65
Positive
42.58
Positive
Market Momentum
2.50
Positive
68.91
Neutral
86.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODC, the sentiment is Positive. The current price of 60.33 is above the 20-day moving average (MA) of 57.57, above the 50-day MA of 50.71, and above the 200-day MA of 42.58, indicating a bullish trend. The MACD of 2.50 indicates Positive momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 86.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $819.40M | 17.52 | 20.93% | 1.03% | 9.92% | 17.12% | |
74 Outperform | $2.20B | 23.57 | 6.78% | 1.57% | -5.72% | -19.82% | |
70 Outperform | $3.36B | 33.80 | 5.62% | 1.49% | -0.09% | -37.60% | |
67 Neutral | $1.34B | 24.16 | 4.65% | 2.62% | -0.16% | 47.70% | |
62 Neutral | $1.88B | 11.37 | -1.45% | 0.75% | -3.82% | -126.04% | |
62 Neutral | $10.29B | 9.96 | -0.15% | 2.86% | 2.14% | -32.15% |
* Basic Materials Sector Average
Performance Comparison
ODC
Oil-Dri Of America
60.33
30.31
100.97%
FUL
H.B. Fuller Company
62.24
-13.99
-18.35%
MTX
Minerals Technologies
59.10
-22.30
-27.40%
KWR
Quaker Chemical
124.26
-42.31
-25.40%
SCL
Stepan Company
59.25
-22.15
-27.21%
Oil-Dri Of America Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Oil-Dri Of America Declares Quarterly Cash Dividends
Positive
Jun 5, 2025
On June 4, 2025, Oil-Dri Corporation of America announced that its Board of Directors declared quarterly cash dividends, payable on August 22, 2025. The company reported record third-quarter results for fiscal year 2025, with an 8% increase in net sales and a 50% rise in net income compared to the previous year. This growth was driven by a favorable product mix, higher volumes, and increased prices, alongside strategic acquisitions and strong demand for agricultural and renewable diesel products. Despite challenges in the clay-based cat litter segment, the company remains focused on the lightweight litter segment, which is experiencing accelerated growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.