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Oil-dri Corporation Of America (ODC)
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Oil-Dri Of America (ODC) AI Stock Analysis

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ODC

Oil-Dri Of America

(NYSE:ODC)

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Outperform 79 (OpenAI - 4o)
Rating:79Outperform
Price Target:
$69.00
▲(14.20% Upside)
Oil-Dri Of America's strong financial performance and positive earnings call are the most significant factors contributing to the high score. The company's robust growth, strategic investments, and successful acquisitions position it well for future success. Technical analysis indicates some short-term weakness, but the overall outlook remains positive due to solid fundamentals and reasonable valuation.

Oil-Dri Of America (ODC) vs. SPDR S&P 500 ETF (SPY)

Oil-Dri Of America Business Overview & Revenue Model

Company DescriptionOil-Dri Corporation of America (ODC) is a leading manufacturer of sorbent products, primarily focused on the production of absorbent clay and related products for various industries, including automotive, industrial, agricultural, and consumer markets. The company operates through several segments, including the Retail and Industrial Products segment, which offers products such as cat litter, and the Specialty Products segment, which provides specialized sorbents for oil and gas, food, and other applications. With a commitment to innovation and sustainability, Oil-Dri has established itself as a key player in the absorbent materials market.
How the Company Makes MoneyOil-Dri generates revenue through the sale of its absorbent products across multiple sectors. The company's key revenue streams include retail sales of pet products, such as cat litter, and industrial sales of sorbents used in various applications. Oil-Dri also benefits from partnerships with major retailers and distributors, which help expand its market reach and visibility. Additionally, the company invests in research and development to create new products and improve existing ones, ensuring ongoing demand and customer loyalty. Factors contributing to its earnings include the growing pet ownership trend, increasing environmental awareness leading to demand for sustainable products, and the diversification of its product offerings across different industries.

Oil-Dri Of America Earnings Call Summary

Earnings Call Date:Oct 09, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Dec 15, 2025
Earnings Call Sentiment Positive
Oil-Dri Corporation of America reported strong financial performance with significant revenue, cash flow, and EBITDA growth. The successful Ultra Pet acquisition and a substantial dividend increase further highlighted the positive aspects, despite challenges from planned production outages and competitive promotional spending.
Q4-2025 Updates
Positive Updates
Strong Financial Performance
Oil-Dri reported revenue increases of 10% over the prior year's fourth quarter, driven primarily by volume and a favorable product mix. B2B products saw a robust 24% year-over-year revenue growth.
Significant Cash Flow and EBITDA Growth
Net cash provided by operating activities was $80 million, a 33% increase compared to fiscal year 2024. Full year EBITDA of $90 million was up 29% over the prior year.
Successful Ultra Pet Acquisition
The acquisition of Ultra Pet was deemed successful, providing value-added product expansion and acquiring key talent.
Dividend Increase
A 16% dividend per share increase was announced for fiscal year 2026, demonstrating the company's commitment to providing predictable and sustainable dividends.
Agricultural Sales Surge
Agricultural sales surged by 104% in Q4, attributed to normalized purchasing patterns and a new key customer.
Negative Updates
Planned Production Outages
Several planned outages in production facilities led to incremental contract services and repair expenses, impacting inventories.
Competitive Promotional Spending
Competitors increased their promotional spending, which tempered Oil-Dri's clay-based litter sales during the quarter.
Margin Pressure on Historic Products
There is expected margin pressure on historic products due to pricing adjustments for higher replacement costs.
Company Guidance
During the Oil-Dri Corporation of America's fourth quarter fiscal 2025 call, the company reported a 10% increase in revenue compared to the previous year, primarily driven by a 24% growth in business-to-business product sales. This improvement contributed to a full-year EBITDA of $90 million, marking a 29% increase from the prior fiscal year. The company also highlighted a $33 million investment in capital projects, including cybersecurity upgrades and data analytics, aimed at supporting long-term growth. Additionally, Oil-Dri achieved a net cash provided by operating activities of $80 million, a 33% increase from fiscal 2024, and paid down $11 million in debt. Looking ahead, the company anticipates challenging comparisons for the first half of fiscal 2026 but remains confident in its ability to surpass the previous year's performance, supported by strategic investments, new product launches, and strong customer relationships.

Oil-Dri Of America Financial Statement Overview

Summary
Oil-Dri Of America exhibits strong financial performance across all verticals. The income statement shows impressive growth and profitability, the balance sheet reflects a solid financial structure with reduced leverage, and the cash flow statement indicates robust cash generation. The company is well-positioned for continued success in the Chemicals - Specialty industry.
Income Statement
85
Very Positive
Oil-Dri Of America has demonstrated consistent revenue growth over the years, with a notable increase in gross profit margin from 17.93% in 2022 to 29.47% in 2025. The net profit margin has also improved significantly, reaching 11.12% in 2025. The EBIT and EBITDA margins have shown positive trends, indicating strong operational efficiency. Overall, the income statement reflects robust growth and profitability.
Balance Sheet
78
Positive
The company's debt-to-equity ratio has decreased from 0.34 in 2024 to 0.15 in 2025, indicating improved financial leverage. Return on equity has increased to 20.84% in 2025, showcasing effective use of equity to generate profits. The equity ratio remains stable, suggesting a solid capital structure. Overall, the balance sheet shows a healthy financial position with reduced leverage and strong equity returns.
Cash Flow
82
Very Positive
Oil-Dri Of America has seen a positive trend in free cash flow growth, with a 4.42% increase in 2025. The operating cash flow to net income ratio is strong at 1.16, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 0.59 suggests a healthy conversion of profits into cash. Overall, the cash flow statement reflects strong cash generation and financial flexibility.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue474.06M485.57M437.59M413.02M348.59M304.98M
Gross Profit141.27M143.08M125.09M103.23M62.52M65.24M
EBITDA87.35M90.26M70.74M51.67M20.41M28.27M
Net Income47.08M54.00M37.26M28.03M5.67M10.62M
Balance Sheet
Total Assets369.54M391.68M354.61M286.24M249.61M227.57M
Cash, Cash Equivalents and Short-Term Investments36.48M50.46M24.48M31.75M16.30M24.59M
Total Debt57.21M39.82M70.72M42.51M44.73M18.94M
Total Liabilities122.68M132.62M144.02M109.16M99.26M68.33M
Stockholders Equity246.86M259.06M210.59M177.08M150.72M159.54M
Cash Flow
Free Cash Flow45.61M47.62M28.31M25.40M-12.99M-5.20M
Operating Cash Flow78.37M80.18M60.31M49.76M9.84M13.64M
Investing Cash Flow-77.09M-32.53M-76.12M-24.57M-22.81M-18.83M
Financing Cash Flow-11.66M-21.74M8.33M-9.52M4.70M-11.32M

Oil-Dri Of America Technical Analysis

Technical Analysis Sentiment
Positive
Last Price60.42
Price Trends
50DMA
61.77
Negative
100DMA
59.69
Positive
200DMA
51.93
Positive
Market Momentum
MACD
-0.70
Positive
RSI
47.37
Neutral
STOCH
13.33
Positive
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 60.42 is below the 20-day moving average (MA) of 60.76, below the 50-day MA of 61.77, and above the 200-day MA of 51.93, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$813.86M15.9621.89%1.07%10.97%36.07%
75
Outperform
$1.07B20.969.47%-9.57%-24.85%
67
Neutral
$1.05B18.264.77%3.39%2.64%66.43%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
58
Neutral
$1.85B98.661.55%2.15%-5.45%-87.13%
54
Neutral
$1.86B1,305.510.13%0.73%-3.93%-97.39%
52
Neutral
$934.79M-1.97%4.93%-124.60%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ODC
Oil-Dri Of America
60.42
26.93
80.41%
IOSP
Innospec
75.89
-30.95
-28.97%
MTX
Minerals Technologies
60.51
-16.15
-21.07%
REX
Rex American
31.29
9.21
41.71%
SCL
Stepan Company
45.46
-25.40
-35.85%
ECVT
Ecovyst
8.13
1.79
28.23%

Oil-Dri Of America Corporate Events

Oil-Dri Corporation’s Earnings Call Highlights Growth
Oct 15, 2025

Oil-Dri Corporation of America recently held its earnings call, revealing a strong financial performance characterized by significant revenue, cash flow, and EBITDA growth. The sentiment during the call was overwhelmingly positive, bolstered by the successful acquisition of Ultra Pet and a notable dividend increase. Despite facing challenges such as planned production outages and competitive promotional spending, the company demonstrated resilience and optimism.

Oil-Dri Corporation Reports Record Annual Results
Oct 11, 2025

Oil-Dri Corporation of America is a leading manufacturer and supplier of specialty sorbent products, catering to various markets including pet care, animal health, and fluids purification. The company is known for its vertically integrated operations, which allow it to efficiently manage everything from research and development to sales.

Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Oil-Dri Reports Record Financial Results for 2025
Positive
Oct 9, 2025

On October 8, 2025, Oil-Dri Corporation of America announced its strongest annual financial results in history, with record net sales and income for fiscal year 2025. The company reported a 10% increase in fourth-quarter net sales and a 37% rise in annual net income, driven by strategic investments, increased dividends, and debt reduction. The results highlight Oil-Dri’s robust operational momentum and strategic expansion, including the acquisition of Ultra Pet Company, Inc., which contributed to the company’s growth.

The most recent analyst rating on (ODC) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Oil-Dri Of America stock, see the ODC Stock Forecast page.

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.Date of analysis: Oct 23, 2025