Orion Engineered (OEC) AI Stock Analysis

• Market Cap: $564.87M
• Dividend Yield: 0.82%
• Average Volume (3M): 632.10K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 1.24
• Revenue Growth: -3.79%
• EPS Growth: -79.76%
• Country: US
• Employees: 1,658
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 0.32
• Shares Outstanding: 56,149,708
• 10 Day Avg. Volume: 853,067
• 30 Day Avg. Volume: 632,102
• PEG Ratio: -0.37
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -11.29
• Enterprise Value/Market Cap: 2.78
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.88
• Enterprise Value/Ebitda: 9.22
• 1Y Price Target: $9.50
• Price Target Upside: -5.57% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: $10.50 ▲(4.37% Upside)

Orion Engineered's overall stock score reflects a cautious financial position with strong cash flow management but high leverage. The technical analysis indicates a bearish trend, and the valuation suggests potential overvaluation. The earnings call and corporate events provide some positive signals, but uncertainties remain due to demand headwinds and tariff impacts.

Positive Factors

Capital Allocation

The CEO noted that Orion is positioned to achieve higher earnings levels without additional growth capital and views opportunistic share repurchases as an attractive allocation of capital.

Financial Performance

Orion is expected to have a free cash flow yield of approximately 15.5% due to sharply lower anticipated capital expenditures following the completion of an expansion project.

Market Position

Orion is a leading producer of carbon black, with a strong market position and over 900,000 tons in annual volume and 9% market share.

Negative Factors

Earnings Outlook

The price target for Orion was decreased from $18 to $12, reflecting a more cautious outlook.

Investment Outlook

The investment rating on Orion was lowered from Overweight to Neutral due to economic uncertainties creating valuation risk.

Valuation

The valuation gap between Orion and its peer Cabot is now considered to be within a reasonable range, limiting the opportunity for Orion’s trading multiples to expand.

Orion Engineered Business Overview & Revenue Model

Company Description

Orion Engineered Carbons (OEC) is a leading global supplier of carbon black, a critical component used in a variety of applications including tires, coatings, plastics, and other rubber products. With a commitment to sustainability and innovation, OEC operates manufacturing facilities across the globe and offers a comprehensive portfolio of high-performance carbon blacks, specialized formulations, and technical services to meet diverse customer needs in the automotive, industrial, and consumer markets.

How the Company Makes Money

Orion Engineered Carbons generates revenue primarily through the production and sale of carbon black products. The company operates on a B2B model, supplying its products to manufacturers in various industries, including automotive, coatings, and plastics. Key revenue streams include the sale of standard and specialty carbon blacks, which are utilized in tire manufacturing and other rubber applications, as well as in coatings and plastics for enhanced performance. Additionally, OEC benefits from long-term contracts with major customers, which provide stability and predictable income. The company also invests in research and development to create innovative products and improve production efficiencies, further enhancing its revenue potential. Strategic partnerships with leading companies in the automotive and industrial sectors play a significant role in expanding OEC's market reach and driving sales growth.

Orion Engineered Financial Statement Overview

Summary

Orion Engineered shows a mixed financial performance. While cash flow management is strong, with a significant free cash flow growth rate and a high operating cash flow to net income ratio, the company faces challenges in revenue growth and profitability margins. High leverage is a concern, but cash generation capabilities provide some cushion.

Income Statement

Orion Engineered shows a mixed performance in its income statement. The gross profit margin for TTM is approximately 21.85%, indicating a reasonable level of efficiency in production. However, the net profit margin is only 1.44%, reflecting challenges in controlling costs or pricing strategies. Revenue has decreased slightly over the past year, with a negative growth rate of -1.34% from 2024 to TTM. EBIT and EBITDA margins are 4.45% and 9.20% respectively, showing a decline in operational profitability compared to previous years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.09, indicating significant leverage, which could pose risks if not managed carefully. The return on equity (ROE) is 5.71% for TTM, suggesting moderate efficiency in generating profits from shareholders' equity. The equity ratio is 23.68%, showing a relatively low proportion of equity financing compared to total assets, which may affect financial stability.

Cash Flow

Cash flow analysis shows a positive trajectory with a free cash flow growth rate of 132.34% from 2024 to TTM, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is 3.51, indicating strong cash flow relative to net income, which is a positive sign of cash management. The free cash flow to net income ratio is 0.99, suggesting that the company is effectively converting its net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.85B	1.88B	1.89B	2.03B	1.55B	1.14B
Gross Profit	404.70M	428.80M	451.00M	448.80M	386.60M	292.35M
EBITDA	170.40M	225.90M	327.20M	302.80M	244.90M	149.89M
Net Income	26.60M	44.20M	103.50M	106.20M	134.70M	18.20M
Balance Sheet
Total Assets	1.97B	1.86B	1.83B	1.89B	1.63B	1.39B
Cash, Cash Equivalents and Short-Term Investments	37.50M	44.20M	37.50M	60.80M	65.70M	68.50M
Total Debt	972.50M	1.03B	927.20M	915.30M	782.90M	738.44M
Total Liabilities	1.50B	1.38B	1.35B	1.43B	1.31B	1.21B
Stockholders Equity	466.10M	474.90M	478.50M	459.40M	319.70M	181.01M
Cash Flow
Free Cash Flow	26.30M	-81.40M	173.10M	-151.80M	-69.50M	-19.66M
Operating Cash Flow	93.40M	125.30M	345.90M	81.00M	145.20M	125.28M
Investing Cash Flow	-202.45M	-206.70M	-172.80M	-232.80M	-214.70M	-144.94M
Financing Cash Flow	104.01M	89.30M	-197.10M	149.30M	73.30M	13.54M

Orion Engineered Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OEC, the sentiment is Negative. The current price of 10.06 is below the 20-day moving average (MA) of 10.40, below the 50-day MA of 10.68, and below the 200-day MA of 13.24, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 57.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OEC.

Orion Engineered Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODC	82 Outperform	$806.78M	17.25	20.93%	1.11%	9.92%	17.12%
SCL	65 Neutral	$1.12B	19.48	4.77%	3.14%	2.64%	66.43%
OEC	61 Neutral	$564.87M	37.36	3.11%	0.82%	-3.79%	-79.76%
ECVT	60 Neutral	$1.02B	17.67	-1.97%	―	4.93%	-124.60%
KRO	54 Neutral	$691.47M	10.24	8.33%	3.22%	6.51%	3457.58%
CC	51 Neutral	$2.19B	59.33	-87.50%	4.52%	2.48%	-459.90%
Sector *	44 Neutral	C$927.89M	-8.64	-0.02%	2.70%	23.29%	-43.30%

Orion Engineered Corporate Events

Orion Engineered Announces CFO Jeff Glajch’s Retirement

On July 30, 2025, Orion S.A. announced the upcoming retirement of its Chief Financial Officer, Jeff Glajch, effective early in the fourth quarter of 2025. Glajch’s retirement is not due to any disagreements with the company, and he will assist in the transition until the end of the year. Orion’s CEO, Corning Painter, expressed gratitude for Glajch’s contributions, noting that his leadership has strengthened the company’s finance and IT teams, positioning Orion for future growth. A comprehensive search for Glajch’s successor will be initiated.

The most recent analyst rating on (OEC) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Orion Engineered stock, see the OEC Stock Forecast page.

Orion Engineered Declares Interim Dividend Announcement

On June 26, 2025, Orion S.A. announced the declaration of an interim dividend of $0.0207 per common share, totaling approximately $1.2 million, to be paid on October 8, 2025. This move reflects Orion’s continued commitment to returning value to its shareholders and may enhance its market positioning as a reliable investment, while stakeholders should note the 15% Luxembourg withholding tax applicable to the dividend.

The most recent analyst rating on (OEC) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Orion Engineered stock, see the OEC Stock Forecast page.

Orion Engineered Approves Key Decisions at AGM

On June 26, 2025, Orion S.A. held its Annual General Meeting of Shareholders, where all proposed matters were approved. Key decisions included the election of several directors for terms ending in 2025, the approval of board and executive compensation, and the ratification of financial statements for 2024. Additionally, Ernst & Young was appointed as the independent auditor, and the board was authorized to purchase company shares for five years.

The most recent analyst rating on (OEC) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Orion Engineered stock, see the OEC Stock Forecast page.