OCI N.V. (OCI) AI Stock Analysis

• Market Cap: €744.95M
• Dividend Yield: 83.41%
• Average Volume (3M): 974.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: NL
• Employees: 1,018
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 211,357,990
• 10 Day Avg. Volume: 721,335
• 30 Day Avg. Volume: 974,704
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 2.42
• P/FCF Ratio: -288.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €6.77
• Price Target Upside: 97.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 39 Underperform
• Price Target: €3.50 ▲(2.04% Upside)

OCI N.V.'s overall stock score is significantly impacted by its financial performance challenges, including declining revenues and negative operating margins. The technical analysis indicates a strong bearish trend, with the stock trading below all major moving averages and in oversold conditions. The valuation is concerning due to a negative P/E ratio and an unsustainably high dividend yield, suggesting potential financial instability.

OCI N.V. Business Overview & Revenue Model

Company Description

OCI N.V. produces and distributes natural gas-based products and industrial chemicals to agricultural, transportation, and industrial customers. It operates through Methanol US, Methanol Europe, Nitrogen US, Nitrogen Europe, and Fertiglobe segments. The company offers anhydrous ammonia, granular urea, urea ammonium nitrate solution, calcium ammonium nitrate, ammonium sulphate, nitrogen argon, aqueous ammonia, nitric acid, urea solution, bio-methanol, methanol, melamine, and diesel exhaust fluid, as well as and other nitrogen products. It also owns and operates an ammonia export terminal at the port of Rotterdam. The company has operations in Europe, the Americas, the Middle East, Africa, Asia, and Oceania. OCI N.V. has a strategic partnership with Abu Dhabi National Oil Company. OCI N.V. was founded in 2013 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

OCI generates revenue primarily through the sale of nitrogen fertilizers and industrial chemicals. The company produces a range of products, including urea, ammonium nitrate, and ammonia, which are sold to agricultural and industrial customers worldwide. Key revenue streams come from both the agricultural segment, where fertilizers are sold to farmers and distributors, and the industrial segment, where chemicals are supplied to manufacturers across various industries. OCI also benefits from strategic partnerships and long-term contracts with key clients, ensuring a steady demand for its products. Additionally, fluctuations in raw material prices and global agricultural demand can significantly impact the company's earnings, making them sensitive to market conditions.

OCI N.V. Financial Statement Overview

Summary

OCI N.V. faces challenges with declining revenues and negative operating margins, yet maintains a strong net profit margin due to high net income. The balance sheet shows improved leverage and strong return on equity, though asset financing remains a concern. Cash flow analysis reveals improvements in free cash flow, but negative operating cash flow highlights operational cash generation issues.

Income Statement

OCI N.V. has experienced significant revenue decline with a negative growth rate of -28.36% in the TTM period. The gross profit margin is negative, indicating cost pressures. However, the net profit margin is positive at 9.95%, driven by substantial net income, suggesting some operational efficiencies or one-time gains. Historical data shows fluctuating margins, with a notable decline in EBIT and EBITDA margins, highlighting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.46 in the TTM period, indicating better leverage management compared to previous years. Return on equity is strong at 2.59%, suggesting effective use of equity. However, the equity ratio is relatively low, indicating potential risks in asset financing. Historical data shows a trend of decreasing debt levels, which is a positive sign for financial stability.

Cash Flow

OCI N.V. has shown a significant improvement in free cash flow growth at 112.04% in the TTM period. However, the operating cash flow is negative, raising concerns about cash generation from core operations. The free cash flow to net income ratio is healthy at 0.65, indicating efficient cash conversion. Historical cash flow data reflects volatility, with recent improvements in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	534.10M	975.10M	1.96B	3.71B	6.32B	3.47B
Gross Profit	-105.60M	2.00M	-164.60M	435.00M	1.83B	412.10M
EBITDA	-212.00M	38.90M	-144.00M	565.30M	2.47B	798.80M
Net Income	5.31B	4.98B	-392.00M	1.24B	570.50M	-177.70M
Balance Sheet
Total Assets	3.54B	4.33B	8.97B	9.77B	9.81B	9.10B
Cash, Cash Equivalents and Short-Term Investments	1.77B	2.05B	156.90M	1.69B	1.44B	632.20M
Total Debt	853.70M	803.70M	2.30B	3.15B	4.08B	4.71B
Total Liabilities	1.67B	2.08B	7.02B	5.43B	6.30B	6.43B
Stockholders Equity	1.86B	2.24B	926.50M	2.32B	2.00B	1.13B
Cash Flow
Free Cash Flow	-264.20M	-8.20M	530.80M	2.95B	2.02B	354.60M
Operating Cash Flow	-407.40M	68.10M	695.30M	3.35B	2.26B	617.80M
Investing Cash Flow	9.34B	8.07B	-774.30M	-390.80M	-243.50M	-260.20M
Financing Cash Flow	-7.15B	-6.13B	-818.20M	-2.44B	-1.50B	-244.90M

OCI N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:OCI, the sentiment is Negative. The current price of 3.43 is below the 20-day moving average (MA) of 3.54, below the 50-day MA of 4.15, and below the 200-day MA of 4.42, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 28.39 is Positive, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:OCI.

OCI N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APAM	―	€2.34B	12.39	5.98%	6.37%	-0.46%	182.29%
CRBN	―	€1.02B	15.04	8.84%	3.62%	-3.45%	-5.55%
IMCD	―	€5.61B	20.77	14.32%	2.45%	6.09%	-7.18%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AMG	―	€881.79M	99.36	1.94%	0.69%	5.17%	―
AKZA	―	€10.38B	178.42	1.39%	3.48%	-2.03%	-89.67%
OCI	―	€744.95M	-3.66	―	83.41%	―	―