Orion Engineered (OEC) AI Stock Analysis

• Market Cap: $341.39M
• Dividend Yield: 1.61%
• Average Volume (3M): 935.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -4.31%
• EPS Growth: -206.57%
• Country: US
• Employees: 1,658
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.29
• Shares Outstanding: 56,149,708
• 10 Day Avg. Volume: 1,047,203
• 30 Day Avg. Volume: 935,232
• 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: 4.05
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 8.92
• 1Y Price Target: $6.75
• Price Target Upside: 9.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $6.00 ▼(-2.76% Downside)

Orion Engineered's overall stock score is primarily impacted by financial performance challenges, including declining revenue and profitability pressures. Technical analysis indicates a bearish trend, and valuation metrics reflect current financial difficulties. The earnings call provided some positive insights into cost control and free cash flow generation, but market challenges remain significant.

Positive Factors

Specialty Segment Growth

Growth in the Specialty segment indicates potential for expansion into new markets, enhancing revenue diversification and long-term stability.

Positive Free Cash Flow Outlook

Positive free cash flow outlook suggests effective cost management and operational efficiency, supporting financial health and investment capacity.

New CFO Appointment

The new CFO's extensive experience in the chemical industry is expected to enhance strategic financial management and support growth initiatives.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in market demand and competitiveness, potentially affecting long-term growth and profitability.

High Leverage

High leverage can limit financial flexibility and increase risk, impacting the company's ability to invest in growth opportunities.

Rubber Segment Demand Decline

Decline in tire production affects demand for core products, posing a challenge to revenue and market position in the rubber segment.

Orion Engineered Business Overview & Revenue Model

Company Description

Orion Engineered Carbons S.A., together with its subsidiaries, manufactures and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and internationally. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for polymers, coatings, and battery electrodes. It also provides rubber carbon black products for applications in mechanical rubber goods under the PUREX brand, as well as in tires under the ECORAX brand name. The company was formerly known as Orion Engineered Carbons S.à r.l. and changed its name to Orion Engineered Carbons S.A. in July 2014. Orion Engineered Carbons S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

How the Company Makes Money

Orion Engineered Carbide generates revenue primarily through the sale of its engineered carbide products, which are used in various industrial applications. The company employs a direct sales model, collaborating closely with clients to deliver customized solutions that meet their operational requirements. Key revenue streams include the sale of standard and bespoke wear parts, cutting tools, and other engineered solutions. OEC also benefits from long-term contracts with major players in its target industries, providing a stable income base. Additionally, partnerships with technology providers and industry leaders enhance its product offerings and market reach, contributing positively to overall revenue growth.

Orion Engineered Financial Statement Overview

Summary

Orion Engineered faces challenges with declining revenue and profitability pressures, as seen in the income statement. The balance sheet shows high leverage, though there is some improvement in the TTM period. Cash flow performance is mixed, with recent improvements in free cash flow growth. Overall, the company needs to address revenue growth and manage debt levels to enhance financial stability.

Income Statement

The income statement shows a declining trend in revenue, with a significant drop in the TTM period. Gross profit margin and net profit margin have decreased over time, indicating pressure on profitability. The negative net profit margin in the TTM period is concerning. However, the company has managed to maintain a positive EBIT and EBITDA margin, though both have declined compared to previous years.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which has improved in the TTM period but remains a potential risk. Return on equity has decreased significantly, indicating reduced efficiency in generating profits from equity. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a strong recovery in free cash flow growth in the TTM period, which is a positive sign. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has been volatile, reflecting fluctuations in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.88B	1.89B	2.03B	1.55B	1.14B
Gross Profit	371.40M	428.80M	451.00M	448.80M	386.60M	292.35M
EBITDA	155.10M	225.90M	324.90M	308.00M	327.10M	149.89M
Net Income	-31.80M	44.20M	103.50M	106.20M	134.70M	18.16M
Balance Sheet
Total Assets	1.96B	1.86B	1.83B	1.89B	1.63B	1.39B
Cash, Cash Equivalents and Short-Term Investments	51.30M	54.10M	37.50M	60.80M	65.70M	68.50M
Total Debt	1.01B	1.03B	927.20M	1.01B	867.50M	825.05M
Total Liabilities	1.56B	1.38B	1.35B	1.43B	1.31B	1.21B
Stockholders Equity	401.80M	474.90M	478.50M	459.40M	319.70M	181.01M
Cash Flow
Free Cash Flow	33.15M	-81.40M	173.10M	-151.80M	-69.50M	-19.66M
Operating Cash Flow	217.33M	125.30M	345.90M	81.00M	145.20M	125.28M
Investing Cash Flow	-184.18M	-206.70M	-172.80M	-232.80M	-214.70M	-144.94M
Financing Cash Flow	-34.58M	89.30M	-197.10M	149.30M	73.30M	13.54M

Orion Engineered Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OEC, the sentiment is Neutral. The current price of 6.17 is above the 20-day moving average (MA) of 5.39, above the 50-day MA of 5.08, and below the 200-day MA of 8.83, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 72.24 is Negative, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OEC.

Orion Engineered Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	75 Outperform	$5.19B	35.08	12.06%	0.61%	7.55%	22.43%
SSL	69 Neutral	$4.32B	11.80	4.56%	―	-6.73%	―
CBT	66 Neutral	$3.85B	12.11	21.98%	2.72%	-7.04%	-11.28%
SXT	63 Neutral	$4.17B	30.01	12.31%	1.70%	4.25%	56.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CC	49 Neutral	$2.14B	-6.64	-69.74%	4.37%	2.12%	-579.74%
OEC	48 Neutral	$341.39M	-10.62	-7.24%	1.61%	-4.31%	-206.57%

Orion Engineered Corporate Events

Orion Engineered Appoints New Chief Financial Officer

Orion S.A. announced the appointment of Jonathan Puckett as the new Chief Financial Officer, effective December 1, 2025, succeeding Jeffrey Glajch who will retire but continue as a consultant until March 2026. Puckett brings over 30 years of financial leadership experience, primarily in the chemical industry, and his appointment is expected to support Orion’s growth and profitability goals.

The most recent analyst rating on (OEC) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Orion Engineered stock, see the OEC Stock Forecast page.