Oil-Dri Corporation of America Fundamental Analysis
Oil-Dri Corporation of America (ODC) shows strong financial fundamentals with a PE ratio of 17.33, profit margin of 11.22%, and ROE of 20.30%. The company generates $0.7B in annual revenue with strong year-over-year growth of 10.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ODC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentODC demonstrates superior asset utilization.
Valuation Score
ModerateODC shows balanced valuation metrics.
Growth Score
ExcellentODC delivers strong and consistent growth momentum.
Financial Health Score
ExcellentODC maintains a strong and stable balance sheet.
Profitability Score
WeakODC struggles to sustain strong margins.
Key Financial Metrics
Is ODC Expensive or Cheap?
P/E Ratio
ODC trades at 17.33 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ODC's PEG of 3.34 indicates potential overvaluation.
Price to Book
The market values Oil-Dri Corporation of America at 3.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.78 times EBITDA. This signals the market has high growth expectations.
How Well Does ODC Make Money?
Net Profit Margin
For every $100 in sales, Oil-Dri Corporation of America keeps $11.22 as profit after all expenses.
Operating Margin
Core operations generate 13.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.30 in profit for every $100 of shareholder equity.
ROA
Oil-Dri Corporation of America generates $13.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oil-Dri Corporation of America generates limited operating cash flow of $38.47M, signaling weaker underlying cash strength.
Free Cash Flow
Oil-Dri Corporation of America generates weak or negative free cash flow of $-2.51M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.18 in free cash annually.
FCF Yield
ODC converts -0.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How ODC Stacks Against Its Sector Peers
| Metric | ODC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.33 | 25.84 | Better (Cheaper) |
| ROE | 20.30% | 1029.00% | Weak |
| Net Margin | 11.22% | -107065.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 3.28 | 6.25 | Strong Liquidity |
| ROA | 13.45% | -5614.00% (disorted) | Strong |
ODC outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oil-Dri Corporation of America's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.34%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
196.32%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
95.33%
Industry Style: Cyclical, Commodity, Value
High Growth