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Oil-Dri Of America
(NYSE:ODC)
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Rating:65Neutral
Price Target:
$97.00
▼(-1.81% Downside)
Action:Downgraded
Date:08/18/26
The score is driven primarily by strong profitability and an exceptionally conservative balance sheet, partially offset by weak recent cash flow conversion. Earnings call commentary supports solid demand and execution (notably strong quarterly operating cash flow and dividend growth) but highlights persistent margin pressure from costs and rising depreciation. Technical indicators are unfavorable in the near term, and valuation is only moderate with a low dividend yield.
Positive Factors
Proprietary reserves and integration
Owned mineral reserves and vertical integration support supply security, production control and margin capture from extraction through finished products. Long reserve coverage also reduces dependence on external raw materials and strengthens resilience across consumer and industrial markets.
Negative Factors
Weak recent cash conversion
The recent divergence between earnings and cash generation may reflect working-capital needs or elevated investment, reducing internally available funds. If sustained, weaker conversion could constrain reinvestment, shareholder returns and the balance-sheet advantage.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary reserves and integration
Owned mineral reserves and vertical integration support supply security, production control and margin capture from extraction through finished products. Long reserve coverage also reduces dependence on external raw materials and strengthens resilience across consumer and industrial markets.
Read all positive factors
Oil-Dri Of America (ODC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.24B
Dividend Yield0.88%
Average Volume (3M)69.06K
Price to Earnings (P/E)22.1
Beta (1Y)0.41
Revenue Growth3.31%
EPS Growth14.76%
CountryUS
Employees928
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)4.17
Shares Outstanding10,254,395
10 Day Avg. Volume53,869
30 Day Avg. Volume69,060
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)2.81
Price to Sales (P/S)1.50
P/FCF Ratio15.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Oil-Dri Of America Business Overview & Revenue Model
Company Description
Oil-Dri Corporation of America, along with its various subsidiaries, is engaged in the creation, production, and distribution of absorbent and adsorbent materials both within the United States and internationally. Its business operations are segme...
How the Company Makes Money
ODC makes money by mining mineral reserves and converting those minerals into higher-value sorbent products that it sells through two primary revenue streams: (1) Consumer/Retail products and (2) Industrial/B2B products. (1) Consumer/Retail: A sig...
Oil-Dri Of America Earnings Call Summary
Earnings Call Date:Jun 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 08, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial performance: solid revenue growth (+9% sales), a 23% increase in operating income, record category sales and very strong cash generation ($25M in operating cash) that funded a 10% dividend increase. Management highlighted durable competitive advantages (vertical integration, high fill rates) and growth momentum at Amlan. Offsetting these positives are meaningful margin headwinds: gross margin compression (-190 basis points), rising input and freight costs, and increasing depreciation as recent elevated capex cycles through, plus modest softness in fluid purification exports and heightened category promotional activity. Management emphasized active cost and pricing actions to mitigate these pressures and framed the issues as manageable given strong cash flow and operational resiliency.Positive Updates
Revenue Growth
Third quarter net sales of $126 million, up 9% year-over-year. Strong retail cat litter performance (company reported a 13% increase overall; management noted a 10% increase in domestic cat litter excluding co-packaged volumes) with record sales in Crystal cat litter and expanded co-packaged and lightweight offerings.
Negative Updates
Gross Margin Compression
Gross margin was unfavorably impacted by a 190 basis point decline year-over-year. Domestic cost per ton rose about 6% YoY driven by higher purchased materials, labor, packaging and transportation costs.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Third quarter net sales of $126 million, up 9% year-over-year. Strong retail cat litter performance (company reported a 13% increase overall; management noted a 10% increase in domestic cat litter excluding co-packaged volumes) with record sales in Crystal cat litter and expanded co-packaged and lightweight offerings.
Read all positive updates
Company Guidance
Management's guidance emphasized that margin pressure should persist as depreciation catches up to elevated capital spending—capex has averaged roughly $32M/year the last five years (versus ~$15M/year in FY17–FY21), depreciation has risen from ~ $13M historically to a recent average of $15.5M, is projected ~ $22.5M this year and could approach ~$30M/year as assets mature—yet cash generation and reinvestment remain the focus. In Q3 they reported net sales of $126M (up 9% YoY), income from operations +23% YoY, net cash from operations of $25M, cat litter sales +13% YoY (10% domestic excl. co‑pack) with crystal litter at record sales, a 190 basis‑point YoY gross‑margin decline, domestic cost per ton +6% YoY, and a 99.9% fill rate; the board raised the dividend to $0.225/share (a 10% increase) payable Aug 21, 2026. They also highlighted strategic advantages—11,700 acres of proprietary reserves with ~40‑year coverage per product line (over 100 years total)—and reiterated plans to mitigate costs via productivity, customer pricing and targeted investments.Oil-Dri Of America Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 489.76M | 485.57M | 437.59M | 413.02M | 348.59M | 304.98M |
| Gross Profit | 130.65M | 143.08M | 125.09M | 103.23M | 62.52M | 65.24M |
| EBITDA | 91.93M | 90.69M | 70.74M | 51.67M | 20.41M | 28.27M |
| Net Income | 54.97M | 51.42M | 37.26M | 28.03M | 5.67M | 10.62M |
Balance Sheet | ||||||
| Total Assets | 408.79M | 391.68M | 354.61M | 286.24M | 249.61M | 227.57M |
| Cash, Cash Equivalents and Short-Term Investments | 62.94M | 50.46M | 24.48M | 31.75M | 16.30M | 24.59M |
| Total Debt | 54.33M | 55.18M | 70.72M | 42.51M | 44.73M | 18.94M |
| Total Liabilities | 123.56M | 132.62M | 144.02M | 109.16M | 99.26M | 68.33M |
| Stockholders Equity | 285.23M | 259.06M | 210.59M | 177.08M | 150.72M | 159.54M |
Cash Flow | ||||||
| Free Cash Flow | 46.57M | 47.62M | 28.31M | 25.40M | -12.99M | -5.20M |
| Operating Cash Flow | 75.56M | 80.18M | 60.31M | 49.76M | 9.84M | 13.64M |
| Investing Cash Flow | -28.62M | -32.53M | -76.12M | -24.57M | -22.81M | -18.83M |
| Financing Cash Flow | -23.49M | -21.74M | 8.33M | -9.52M | 4.70M | -11.32M |
Oil-Dri Of America Technical Analysis
Positive
98.79
Price Trends
96.88
Negative
85.28
Positive
71.20
Positive
Market Momentum
-1.69
Positive
46.68
Neutral
50.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODC, the sentiment is Positive. The current price of 98.79 is above the 20-day moving average (MA) of 94.53, above the 50-day MA of 96.88, and above the 200-day MA of 71.20, indicating a neutral trend. The MACD of -1.69 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 50.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ODC.
Oil-Dri Of America Risk Analysis
Oil-Dri Of America disclosed 33 risk factors in its most recent earnings report. Oil-Dri Of America reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oil-Dri Of America Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.31B | 18.92 | 9.15% | 2.11% | 2.87% | 534.76% | |
73 Outperform | $1.44B | 15.80 | 15.77% | ― | 2.95% | 73.25% | |
65 Neutral | $1.24B | 22.12 | 20.30% | 0.78% | 3.31% | 14.76% | |
62 Neutral | $1.45B | -530.58 | -0.22% | 2.73% | 7.63% | -104.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $2.22B | -32.32 | -4.04% | 0.62% | 4.06% | -3189.89% | |
56 Neutral | $1.14B | -19.12 | -10.33% | ― | 20.14% | -359.78% |
* Basic Materials Sector Average
ODC
Oil-Dri Of America
92.24
34.43
59.55%
IOSP
Innospec
92.92
9.94
11.98%
MTX
Minerals Technologies
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9.76
16.08%
REX
Rex American
44.39
15.84
55.45%
SCL
Stepan Company
63.67
15.43
31.97%
ECVT
Ecovyst
10.32
1.44
16.22%
Oil-Dri Of America Corporate Events
Stock BuybackDividendsFinancial Disclosures
Oil-Dri Declares Dividend and Expands Share Repurchase Program
Positive
Jun 8, 2026
On June 3, 2026, Oil-Dri’s board declared quarterly cash dividends of $0.225 per share of Common Stock and $0.168 per share of Class B Stock, payable on August 21, 2026 to shareholders of record on August 7, 2026, and also authorized the rep...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.