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Oil-Dri Corporation Of America (ODC)
NYSE:ODC
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Oil-Dri Of America
(NYSE:ODC)
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Rating:82Outperform
Price Target:
$67.00
▲(10.49% Upside)
Oil-Dri Of America's overall stock score reflects strong financial performance and positive technical indicators, bolstered by a favorable earnings call. While the valuation is fair, the company's strategic growth initiatives and improving cash flow position it well for future performance.
Oil-Dri Of America (ODC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$822.93M
Dividend Yield1.06%
Average Volume (3M)65.05K
Price to Earnings (P/E)17.6
Beta (1Y)0.51
Revenue Growth9.92%
EPS Growth17.12%
CountryUS
Employees949
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.81
Shares Outstanding10,368,372
10 Day Avg. Volume47,793
30 Day Avg. Volume65,053
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)2.12
Price to Sales (P/S)1.02
P/FCF Ratio15.78
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda8.39
Forecast
1Y Price Target
$67.00Price Target Upside10.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Oil-Dri Of America Business Overview & Revenue Model
Company DescriptionOil-Dri Corporation of America (ODC) is a leading manufacturer of sorbent products, primarily focused on the production of absorbent clay and related products for various industries, including automotive, industrial, agricultural, and consumer markets. The company operates through several segments, including the Retail and Industrial Products segment, which offers products such as cat litter, and the Specialty Products segment, which provides specialized sorbents for oil and gas, food, and other applications. With a commitment to innovation and sustainability, Oil-Dri has established itself as a key player in the absorbent materials market.
How the Company Makes MoneyOil-Dri generates revenue through the sale of its absorbent products across multiple sectors. The company's key revenue streams include retail sales of pet products, such as cat litter, and industrial sales of sorbents used in various applications. Oil-Dri also benefits from partnerships with major retailers and distributors, which help expand its market reach and visibility. Additionally, the company invests in research and development to create new products and improve existing ones, ensuring ongoing demand and customer loyalty. Factors contributing to its earnings include the growing pet ownership trend, increasing environmental awareness leading to demand for sustainable products, and the diversification of its product offerings across different industries.
Oil-Dri Of America Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 09, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment due to record net income, significant dividend increases, and successful strategic acquisitions and investments. However, challenges in specific segments like Animal Health and Nutrition and concerns over natural gas prices present potential hurdles. Overall, the positive aspects significantly outweigh the negatives.Q3-2025 Updates
Positive Updates
Record Net Income Achievements
Oil-Dri achieved $11.644 million in net income for Q3 FY2025, surpassing all but 8 of the past 84 fiscal years. The company is ahead of all previous fiscal years in net income through nine months.
Significant Dividend Increase
The Board raised the dividend by 16%, marking the 22nd consecutive year of increased dividends, reflecting confidence in Oil-Dri's strong financial position.
Strong Cash Flow and Capital Investment
Year-to-date net cash provided by operating activities was $55 million, a 49% increase compared to the previous year. The company is reinvesting heavily, with $24.5 million invested in assets year-to-date.
Successful Ultra Pet Acquisition
The Ultra Pet acquisition has performed well, meeting financial benchmarks and generating stronger-than-expected cost synergies, especially in logistics and administration.
Renewable Diesel Sector Growth
Despite a 12% decrease in U.S. renewable diesel production, Oil-Dri's sales in this sector increased by 13% due to securing new business from new plants.
Negative Updates
Flat Performance in Animal Health and Nutrition
The Animal Health and Nutrition segment was flat year-over-year in Q3, attributed to volatility from tariff situations and longer transit times affecting international markets.
Loss of Private Label Clay Cat Litter Account
Oil-Dri recently lost a significant private label clay cat litter account, impacting distribution despite commanding share in the lightweight litter segment.
Natural Gas Price Concerns
Rising natural gas prices are anticipated in the second half of 2025 and 2026, posing a challenge given the company's reliance on LNG for kiln operations.
Company Guidance
During the Oil-Dri Third Quarter Fiscal 2025 Earnings Discussion, CEO Daniel Jaffee highlighted a strong financial performance, with a net income of $11.644 million, which surpassed all but eight of the company's previous 84 fiscal years. The year-to-date net cash provided by operating activities was $55 million, marking a 49% increase from the same period in fiscal 2024. Oil-Dri plans to invest approximately $32 million in capital expenditures this year and the next, contributing to a total of $143 million over a five-year period from fiscal 2022 to 2026. Additionally, the Board approved a 16% dividend increase, reflecting confidence in the company's financial health and cash flow sustainability. CFO Susan Kreh noted the company's effective tax rate for the current fiscal year is expected to be around 19%, benefiting from a one-time tax credit related to solar investments. As part of Oil-Dri's capital allocation strategy, priorities include reinvestment in business sustainability, exploring M&A opportunities, and maintaining predictable dividends. The company also reported progress in its Ultra Pet acquisition, achieving expected financial benchmarks and realizing cost synergies.Oil-Dri Of America Financial Statement Overview
Summary
Oil-Dri Of America demonstrates solid financial health with strong revenue growth, improving margins, and effective cash management. The balance sheet is stable, reflecting prudent leverage levels.Income Statement
Oil-Dri Of America has demonstrated strong revenue growth with an increasing trend over several years. The gross profit margin is healthy, indicating effective cost management. Net profit margin and EBIT margin have shown improvement, reflecting enhanced operational efficiency. However, there is room for improvement in EBITDA margin to further strengthen profitability.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a consistent increase in stockholders' equity, reflecting reinvestment in the business. The debt-to-equity ratio is reasonable, suggesting manageable leverage levels. A strong equity ratio indicates financial stability, although a further reduction in total liabilities could enhance financial resilience.78
Positive
Cash Flow
Operating cash flow has increased significantly, supporting the company's liquidity position. Free cash flow growth is strong, indicating efficient capital expenditure management. The operating cash flow to net income ratio suggests robust cash generation in relation to earnings. Continued focus on free cash flow generation will be key to sustaining financial flexibility.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 474.06M | 437.59M | 413.02M | 348.59M | 304.98M | 283.23M |
| Gross Profit | 141.27M | 125.09M | 103.23M | 62.52M | 65.24M | 75.82M |
| EBITDA | 87.35M | 70.74M | 51.67M | 20.41M | 28.27M | 37.46M |
| Net Income | 49.47M | 39.43M | 29.55M | 5.67M | 11.11M | 18.90M |
Balance Sheet | ||||||
| Total Assets | 369.54M | 354.61M | 286.24M | 249.61M | 227.57M | 235.88M |
| Cash, Cash Equivalents and Short-Term Investments | 36.48M | 23.48M | 31.75M | 16.30M | 24.59M | 40.89M |
| Total Debt | 57.21M | 70.72M | 42.51M | 44.73M | 18.94M | 9.85M |
| Total Liabilities | 122.68M | 144.02M | 109.16M | 99.26M | 68.33M | 87.92M |
| Stockholders Equity | 246.86M | 210.59M | 177.08M | 150.35M | 159.23M | 147.96M |
Cash Flow | ||||||
| Free Cash Flow | 45.61M | 28.31M | 25.40M | -12.99M | -5.20M | 27.72M |
| Operating Cash Flow | 78.37M | 60.31M | 49.76M | 9.84M | 13.64M | 42.46M |
| Investing Cash Flow | -77.09M | -76.12M | -24.57M | -22.81M | -18.83M | -14.68M |
| Financing Cash Flow | -11.66M | 8.33M | -9.52M | 4.70M | -11.32M | -8.75M |
Oil-Dri Of America Technical Analysis
Neutral
60.64
Price Trends
60.96
Negative
58.06
Positive
50.82
Positive
Market Momentum
-0.30
Positive
41.83
Neutral
18.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODC, the sentiment is Neutral. The current price of 60.64 is below the 20-day moving average (MA) of 64.12, below the 50-day MA of 60.96, and above the 200-day MA of 50.82, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 18.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $822.93M | 17.60 | 20.93% | 1.06% | 9.92% | 17.12% | |
75 Outperform | $1.05B | 21.41 | 9.47% | ― | -9.57% | -24.85% | |
67 Neutral | $1.10B | 19.26 | 4.77% | 3.13% | 2.64% | 66.43% | |
63 Neutral | $1.96B | 104.48 | 1.55% | 2.07% | -5.45% | -87.13% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $985.14M | 17.67 | -1.97% | ― | 4.93% | -124.60% | |
55 Neutral | $1.97B | 1,381.72 | 0.13% | 0.70% | -3.93% | -97.39% |
* Basic Materials Sector Average
ODC
Oil-Dri Of America
60.64
28.09
86.30%
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37.88%
SCL
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49.13
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Oil-Dri Of America Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Oil-Dri Of America Declares Quarterly Cash Dividends
Positive
Jun 5, 2025
On June 4, 2025, Oil-Dri Corporation of America announced that its Board of Directors declared quarterly cash dividends, payable on August 22, 2025. The company reported record third-quarter results for fiscal year 2025, with an 8% increase in net sales and a 50% rise in net income compared to the previous year. This growth was driven by a favorable product mix, higher volumes, and increased prices, alongside strategic acquisitions and strong demand for agricultural and renewable diesel products. Despite challenges in the clay-based cat litter segment, the company remains focused on the lightweight litter segment, which is experiencing accelerated growth.
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.