Orion Engineered (OEC) AI Stock Analysis

• Market Cap: $633.03M
• Dividend Yield: 0.74%
• Average Volume (3M): 595.95K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.10
• Revenue Growth: -2.31%
• EPS Growth: -69.16%
• Country: US
• Employees: 1,658
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Chemicals - Specialty
• EPS (TTM): 0.22
• Shares Outstanding: 56,269,650
• 10 Day Avg. Volume: 676,313
• 30 Day Avg. Volume: 595,952
• PEG Ratio: -0.47
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.15
• Enterprise Value/Market Cap: 3.06
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 2.26
• 1Y Price Target: $13.50
• Price Target Upside: 20.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: $12.00 ▲(6.67%Upside)

Orion Engineered's stock score is primarily influenced by its mixed financial performance and bearish technical indicators. High leverage and operational challenges weigh on the score, but strong cash flow management and potential recovery in operations provide some optimism.

Positive Factors

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.

Share Repurchases

CEO noted 'we are positioned to achieve higher earnings levels over several years without additional growth capital' and 'continue to see opportunistic share repurchases as an attractive allocation of capital'.

Negative Factors

Profitability

The company's profitability is negatively impacted by the recent increase in oil prices, which will affect profits until prices are adjusted.

Tire Demand

The US after-market tire demand, which makes up a significant portion of Orion's tire sales, is being negatively impacted by higher imports in North America and Europe.

Valuation

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

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 Carbons generates revenue primarily through the production and sale of carbon black products. The company's revenue model includes selling high-performance and specialty carbon blacks to various industries such as automotive, construction, and electronics. Key revenue streams include the tire industry, which accounts for a significant portion of sales, as well as coatings, inks, and plastics industries. Additionally, OEC engages in strategic partnerships and long-term contracts with major industrial clients, further contributing to its earnings. The company also invests in research and development to innovate and improve product offerings, which helps maintain its competitive edge in the market.

Orion Engineered Financial Statement Overview

Summary

Despite declining revenue and profitability metrics, Orion Engineered maintains a solid balance sheet with improved cash flow. The company shows resilience with a stable asset base and strong cash generation, but faces challenges in revenue growth and profitability.

Income Statement

Orion Engineered's income statement reflects a challenging period with declining revenue, as seen in the TTM figures compared to the previous year. Despite a decrease in total revenue, the company maintains a respectable gross profit margin of 21.84% in TTM. However, the net profit margin has dropped to 1.44% due to decreased net income, indicating pressure on profitability. The EBIT and EBITDA margins have also decreased, suggesting operational challenges. Revenue growth has been negative recently, highlighting a potential area of concern.

Balance Sheet

The balance sheet of Orion Engineered reveals a solid equity position with a debt-to-equity ratio of 2.09, indicating significant leverage but manageable given the industry standards. The equity ratio stands at 23.69%, showing a stable asset base supported by equity. However, the return on equity (ROE) has decreased to 5.71% in TTM, reflecting reduced shareholder returns.

Cash Flow

Orion Engineered's cash flow statement shows a positive trend in free cash flow, improving from negative figures previously. The operating cash flow to net income ratio is healthy at 3.51, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 0.99, reflecting that most of the net income is being converted 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: Neutral
• Last Price: 11.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 11.25 is above the 20-day moving average (MA) of 10.86, above the 50-day MA of 11.13, and below the 200-day MA of 14.21, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 88.58 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
ODC	82 Outperform	$818.72M	17.51	20.93%	1.03%	9.92%	17.12%
KRO	67 Neutral	$752.34M	7.82	11.87%	3.06%	10.42%	―
SCL	67 Neutral	$1.34B	24.16	4.65%	2.62%	-0.16%	47.70%
ECVT	67 Neutral	$986.16M	17.67	-1.64%	―	2.23%	-115.70%
OEC	65 Neutral	$633.03M	24.68	5.55%	0.74%	-2.31%	-69.16%
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%
CC	56 Neutral	$1.94B	62.83	4.66%	2.71%	-0.68%	―

Orion Engineered Corporate Events

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.