Oil-Dri Of America (ODC) AI Stock Analysis

• Market Cap: $845.70M
• Dividend Yield: 1.41%
• Average Volume (3M): 65.11K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.39
• Revenue Growth: 5.29%
• EPS Growth: 17.29%
• Country: US
• Employees: 949
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.07
• Shares Outstanding: 10,342,807
• 10 Day Avg. Volume: 59,580
• 30 Day Avg. Volume: 65,108
• PEG Ratio: 0.39
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 15.26
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 6.23
• Enterprise Value/Ebitda: 9.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $69.00 ▲(25.61% Upside)

Overall score is driven primarily by strong underlying financial performance (profitability and low leverage), supported by reasonable valuation and a positive dividend increase. The main offset is mixed-to-weak technical positioning with negative MACD and price below key longer-term moving averages.

Positive Factors

Strong profitability and margins

Consistent gross margin around 29% and net margin above 10% indicate durable pricing power and operational efficiency across the business. These margins support recurring cash generation, fund R&D and capex, and provide a buffer versus cost inflation, reinforcing medium-term resilience.

Low leverage and high ROE

Very low financial leverage reduces solvency risk and increases balance sheet flexibility for investments, M&A, or shareholder returns. A 21.55% ROE shows efficient capital use, supporting sustainable returns and the capacity to finance growth without over-reliance on external debt.

Rising dividend policy

Repeated dividend increases signal management confidence in recurring cash flow and conservative capital allocation. A rising payout pattern supports investor trust, disciplines capital deployment, and indicates predictable funding of shareholder returns over the medium term.

Negative Factors

Modest revenue decline

A TTM revenue decline of ~1.5% suggests pressure on demand or market share that could be structural if not addressed. Continued revenue softness would strain growth prospects and force reliance on margins or one-time items to maintain profits over the coming months.

Free cash flow growth weakness

A 10.8% drop in FCF growth reduces internal funding for capex, acquisitions, and dividends. Even with solid OCF/NI conversion, weakening FCF growth constrains financial flexibility and raises the bar for sustaining dividend increases or funding strategic investments long term.

Revenue concentration in cat litter

High reliance on the cat litter consumer segment concentrates demand risk and exposes revenue to category-specific shifts, retail dynamics, or competitive pressures. This concentration limits diversification and could amplify earnings volatility if pet-care trends reverse.

Oil-Dri Of America Business Overview & Revenue Model

Company Description

Oil-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 Money

Oil-Dri generates revenue primarily through the sale of its sorbent products across various sectors. Its key revenue streams include consumer products, industrial and environmental products, and agricultural products. The consumer segment, particularly cat litter, constitutes a significant portion of its earnings, driven by strong brand recognition and distribution partnerships with major retailers. In addition, the industrial and environmental divisions focus on providing specialized absorbents for various applications, contributing to steady revenue through long-term contracts and collaborations with businesses in manufacturing, automotive, and environmental cleanup. ODC also benefits from its research and development initiatives, which enhance product offerings and create potential for new revenue opportunities, as well as partnerships that expand market reach and customer base.

Oil-Dri Of America Financial Statement Overview

Summary

Strong profitability (gross margin ~29%, net margin >10% TTM) and solid operating efficiency (healthy EBIT/EBITDA margins). Strength is tempered by a modest TTM revenue decline (-1.54%) and weaker free cash flow growth (-10.8%) despite good cash conversion (OCF/NI 1.40; FCF/NI 0.60).

Income Statement

Oil-Dri Of America shows strong profitability with a consistent gross profit margin around 29% and a net profit margin over 10% in the TTM. However, the recent revenue decline of 1.54% in the TTM indicates potential challenges in maintaining growth. The EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.058 in the TTM, indicating low leverage and financial stability. The return on equity is strong at 21.55%, showcasing effective use of equity to generate profits. The equity ratio is robust, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 10.8% in the TTM, which could be a concern. However, the operating cash flow to net income ratio of 1.40 indicates good cash generation relative to net income. The free cash flow to net income ratio is healthy at 0.60, showing efficient cash conversion.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	478.11M	485.57M	437.59M	413.02M	348.59M	304.98M
Gross Profit	137.80M	143.08M	125.09M	103.23M	62.52M	65.24M
EBITDA	87.19M	90.69M	70.74M	51.67M	20.41M	28.27M
Net Income	51.30M	51.42M	37.26M	28.03M	5.67M	10.62M
Balance Sheet
Total Assets	380.72M	391.68M	354.61M	286.24M	249.61M	227.57M
Cash, Cash Equivalents and Short-Term Investments	42.38M	50.46M	24.48M	31.75M	16.30M	24.59M
Total Debt	15.40M	55.18M	70.72M	42.51M	44.73M	18.94M
Total Liabilities	114.20M	132.62M	144.02M	109.16M	99.26M	68.33M
Stockholders Equity	266.53M	259.06M	210.59M	177.08M	150.72M	159.54M
Cash Flow
Free Cash Flow	50.80M	47.62M	28.31M	25.40M	-12.99M	-5.20M
Operating Cash Flow	79.61M	80.18M	60.31M	49.76M	9.84M	13.64M
Investing Cash Flow	-28.77M	-32.53M	-76.12M	-24.57M	-22.81M	-18.83M
Financing Cash Flow	-22.07M	-21.74M	8.33M	-9.52M	4.70M	-11.32M

Oil-Dri Of America Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 54.93 is below the 20-day moving average (MA) of 61.88, below the 50-day MA of 55.39, and below the 200-day MA of 56.58, indicating a bullish trend. The MACD of 2.29 indicates Positive momentum. The RSI at 65.80 is Neutral, neither overbought nor oversold. The STOCH value of 18.48 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REX	78 Outperform	$1.10B	22.81	8.89%	―	-3.10%	-22.31%
IOSP	73 Outperform	$2.14B	18.51	-0.09%	2.19%	-4.49%	-100.80%
ODC	68 Neutral	$845.70M	16.97	20.62%	1.41%	5.29%	17.29%
SCL	66 Neutral	$1.50B	33.45	3.67%	3.33%	5.35%	-1.43%
MTX	63 Neutral	$2.26B	-140.77	-1.07%	0.74%	-2.53%	-100.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ECVT	53 Neutral	$1.32B	-12.42	-4.15%	―	7.75%	-302.73%

Oil-Dri Of America Corporate Events

Oil-Dri Of America Increases Quarterly Dividend by 14%

On December 9, 2025, Oil-Dri Corporation held its annual meeting where stockholders elected all nominated directors and ratified the appointment of Grant Thornton LLP as the independent auditor for the fiscal year ending July 31, 2026. Subsequently, on December 11, 2025, the company announced a 14% increase in its quarterly cash dividend, marking the second dividend increase in 2025, reflecting its strong financial position and commitment to delivering value to stockholders.

The most recent analyst rating on (ODC) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Oil-Dri Of America stock, see the ODC Stock Forecast page.