Orion Engineered (OEC) AI Stock Analysis

• Market Cap: $421.12M
• Dividend Yield: 1.04%
• Average Volume (3M): 521.65K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.18
• Revenue Growth: -3.79%
• EPS Growth: -79.76%
• Country: US
• Employees: 1,658
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.32
• Shares Outstanding: 56,149,708
• 10 Day Avg. Volume: 542,311
• 30 Day Avg. Volume: 521,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.73
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 9.66
• 1Y Price Target: $10.67
• Price Target Upside: 42.27% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $10.50 ▲(40.00% Upside)

Orion Engineered's overall stock score reflects a moderate financial performance with significant challenges in revenue growth and profitability. Technical indicators suggest a bearish trend, while the valuation indicates potential overvaluation. The earnings call provided a mixed outlook, with positive steps towards operational improvements but ongoing demand challenges. The absence of notable corporate events leaves the focus on financial and operational aspects.

Positive Factors

Operational Excellence

The company's focus on operational excellence and rationalizing production lines is expected to enhance efficiency and reduce costs, contributing to long-term profitability and competitiveness.

Specialty Product Growth

Expanding into high-growth segments such as lithium-ion batteries positions the company to benefit from increasing demand in energy storage, supporting future revenue growth.

Capital Allocation Strategy

Prioritizing debt reduction over share buybacks strengthens the balance sheet, reducing financial risk and increasing flexibility for future investments.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.

Declining Revenue

A declining revenue trend indicates challenges in market demand and competitiveness, which could hinder the company's ability to sustain growth and profitability.

Demand Headwinds

Ongoing demand headwinds in key segments suggest persistent market challenges, potentially impacting revenue and profitability over the medium term.

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 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 faces challenges in revenue growth and profitability, with declining margins and high leverage. While there is improvement in free cash flow, the company needs to address its debt levels and operational efficiency to enhance financial health. The overall financial position is moderate, with potential risks due to high leverage and declining profitability.

Income Statement

Orion Engineered's income statement shows a declining revenue trend with a negative growth rate in the TTM period. The gross profit margin has decreased from previous years, and the net profit margin is low at 0.82% in TTM. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. Overall, the company faces challenges in maintaining profitability and revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.19 in TTM, indicating significant leverage. Return on equity has decreased over time, reflecting lower profitability on shareholders' investments. The equity ratio is stable, but the high leverage poses potential risks. The company needs to manage its debt levels to improve financial stability.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth in the TTM period, which is a positive sign. However, the operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. The free cash flow to net income ratio is moderate, indicating some efficiency in cash generation. Overall, cash flow management shows improvement but remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.88B	1.89B	2.03B	1.55B	1.14B
Gross Profit	393.30M	428.80M	451.00M	448.80M	386.60M	292.35M
EBITDA	162.60M	225.90M	327.20M	302.80M	244.90M	149.89M
Net Income	15.10M	44.20M	103.50M	106.20M	134.70M	18.20M
Balance Sheet
Total Assets	2.02B	1.86B	1.83B	1.89B	1.63B	1.39B
Cash, Cash Equivalents and Short-Term Investments	42.60M	44.20M	37.50M	60.80M	65.70M	68.50M
Total Debt	1.02B	1.03B	927.20M	915.30M	782.90M	738.44M
Total Liabilities	1.56B	1.38B	1.35B	1.43B	1.31B	1.21B
Stockholders Equity	466.50M	474.90M	478.50M	459.40M	319.70M	181.01M
Cash Flow
Free Cash Flow	63.10M	-81.40M	173.10M	-151.80M	-69.50M	-19.66M
Operating Cash Flow	118.05M	125.30M	345.90M	81.00M	145.20M	125.28M
Investing Cash Flow	-190.30M	-206.70M	-172.80M	-232.80M	-214.70M	-144.94M
Financing Cash Flow	79.80M	89.30M	-197.10M	149.30M	73.30M	13.54M

Orion Engineered Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 7.5 is below the 20-day moving average (MA) of 9.18, below the 50-day MA of 9.92, and below the 200-day MA of 12.13, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 25.18 is Positive, neither overbought nor oversold. The STOCH value of 8.51 is Positive, 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
BCPC	76 Outperform	$4.87B	34.39	11.26%	0.58%	5.74%	21.54%
SSL	72 Outperform	$4.03B	10.89	4.44%	―	-6.73%	―
CBT	71 Outperform	$4.11B	10.10	27.58%	2.28%	-3.61%	-9.70%
SXT	68 Neutral	$4.05B	30.08	11.65%	1.72%	4.95%	53.63%
OEC	52 Neutral	$421.12M	27.85	3.11%	1.04%	-3.79%	-79.76%
CC	51 Neutral	$2.34B	-5.60	-177.22%	4.31%	2.48%	-459.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.