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Oil-Dri Of America (ODC) AI Stock Analysis
Oil-Dri Of America
(NYSE:ODC)
Oil-Dri scores well primarily on financial strength: record earnings, a near debt-free balance sheet with roughly 5% debt-to-equity, about 19% return on equity, and operating cash flow that exceeds reported profits. The latest earnings call reinforced this with record annual results, historic cash generation, greatly expanded credit capacity and two dividend increases. Holding the score back are weak near-term technicals, with the stock trading below its 20-, 50- and 100-day moving averages on a negative MACD, and a demanding 26.5x P/E paired with a sub-1% yield at a time when revenue growth has flattened. Rising freight costs, increasing depreciation pressuring margins, a 5% decline in Fluid Purification sales and competitive pressure in branded cat litter are the key operational watch items.
Oil-Dri Of America (ODC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $933.88M
- Dividend Yield
- 1.17%
- Average Volume (3M)
- 131.20K
- Price to Earnings (P/E)
- 16.2
- Beta (1Y)
- 0.40
- Revenue Growth
- 1.70%
- EPS Growth
- 8.10%
- Country
- US
- Employees
- 927
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
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 segmente...
How the Company Makes Money
Oil-Dri makes money by extracting mineral clays from company-owned or controlled reserves, processing them into engineered granules, powders, and blended formulations, and selling those finished products through multiple end markets. Its revenue is p...
Oil-Dri Of America Earnings Call Summary
The call was strongly positive, supported by record annual sales and net income, record fourth-quarter revenue, a 17% increase in operating income, historic cash generation, expanded borrowing capacity, dividend increases, and growth opportunities across Amlan, agriculture, and lightweight cat litter. The company also acknowledged cost pressures, a 5% full-year decline in Fluid Purification sales, early-year Amlan headwinds, and challenges in branded cat litter, but management described the overall financial position and outlook as strong.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management said its prior guidance that the first part of fiscal 2026 would be a tough comparison but that it “fully expected to equal or more than make up the distance in the back half” was achieved, with “meaningful growth during the second half of the year.” For Amlan, management said the Q4 rate of $40 million “probably cannot maintain,” but that it “should see very good growth year over year.” The company said it will continue to invest in its business, support its dividend, evaluate strategic acquisitions, and “opportunistically evaluate potential value creation through share repurchases”; it also said “it is possible you could see some bigger reinvestment in the business at levels higher than you have seen in the past.”
Oil-Dri Of America Financial Statement Overview
Summary
Oil-Dri combines strong earnings quality with an unusually safe balance sheet. Revenue has grown from roughly $305 million in fiscal 2021 to about $494 million, while net income expanded more than ten-fold to $57.0 million, with gross margin up to 27.8% and net margin at 11.5%. Debt has been cut to about $15.7 million against roughly $298 million of equity (around 5% debt-to-equity), with return on equity near 19%. Operating cash flow of $80.1 million comfortably exceeds net income, confirming high earnings quality. Offsetting these strengths, revenue growth has flattened in the latest year, gross margin stepped down from the prior-year peak of 29.5%, and heavy capital spending of about $34 million limits free cash flow conversion to under 60% of profits.
Income Statement
82Very PositiveBalance Sheet
88Very PositiveCash Flow
78Positive| Breakdown | TTM | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 493.84M | 493.84M | 485.57M | 437.59M | 413.02M | 348.59M |
| Gross Profit | 131.80M | 137.51M | 143.08M | 125.09M | 103.23M | 62.52M |
| EBITDA | 94.88M | 94.88M | 90.69M | 70.74M | 51.67M | 20.41M |
| Net Income | 56.97M | 56.97M | 54.00M | 37.26M | 28.03M | 5.67M |
Balance Sheet | ||||||
| Total Assets | 428.79M | 428.79M | 391.68M | 354.61M | 286.24M | 249.61M |
| Cash, Cash Equivalents and Short-Term Investments | 73.70M | 73.70M | 50.46M | 24.48M | 31.75M | 16.30M |
| Total Debt | 53.57M | 53.57M | 55.18M | 70.72M | 42.51M | 44.73M |
| Total Liabilities | 131.06M | 131.06M | 132.62M | 144.02M | 109.16M | 99.26M |
| Stockholders Equity | 297.73M | 297.73M | 259.06M | 210.59M | 177.08M | 150.72M |
Cash Flow | ||||||
| Free Cash Flow | 43.06M | 45.90M | 47.62M | 28.31M | 25.40M | -12.99M |
| Operating Cash Flow | 77.27M | 80.11M | 80.18M | 60.31M | 49.76M | 9.84M |
| Investing Cash Flow | -32.88M | -32.88M | -32.53M | -76.12M | -24.57M | -22.81M |
| Financing Cash Flow | -24.06M | -23.95M | -21.74M | 8.33M | -9.52M | 4.70M |
Oil-Dri Of America Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODC, the sentiment is Negative. The current price of 70.12 is below the 20-day moving average (MA) of 78.43, below the 50-day MA of 84.95, and below the 200-day MA of 79.75, indicating a bearish trend. The MACD of -4.24 indicates Positive momentum. The RSI at 27.40 is Positive, neither overbought nor oversold. The STOCH value of 33.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
0 New RisksOil-Dri Of America Peers Comparison
Overall Rating
IOSP76Outperform- ODC73Outperform
CBT67Neutral
NGVT58Neutral
FSI52Neutral
MTX46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IOSP | 76Outperform | $2.46B | 20.27 | 9.15% | 1.80% | 2.87% | 534.76% |
| ODC | 73Outperform | $958.43M | 16.15 | 20.31% | 1.17% | 1.70% | 8.10% |
| CBT | 67Neutral | $3.84B | 26.85 | 12.07% | 2.44% | -4.74% | -53.83% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| NGVT | 58Neutral | $2.55B | 47.86 | 85.17% | ― | -12.42% | ― |
| FSI | 52Neutral | $78.69M | -25.18 | -8.12% | ― | -4.66% | -201.32% |
| MTX | 46Neutral | $1.95B | -29.74 | -4.12% | 0.74% | 4.76% | -19991.67% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ODC | Oil-dri Corporation Of America | 69.62 | 14.58 | 26.48% | |
| CBT | Cabot Corp | 75.72 | 15.94 | 26.65% | |
| FSI | Flexible Solutions International | 6.17 | -2.67 | -30.20% | |
| IOSP | Innospec | 99.55 | 28.16 | 39.45% | |
| MTX | Minerals Technologies | 64.83 | 9.49 | 17.15% | |
| NGVT | Ingevity | 73.71 | 21.13 | 40.19% |
Oil-Dri Of America Corporate Events
Oil-Dri Reports Record Year and Declares Dividends
PositiveOil-Dri reported record financial results for its fiscal year ended July 31, 2026, highlighted by all-time high net sales of $493.8 million, a 2% increase over the prior year, and record net income of $57.0 million, up 6%. The Retail & Wholesale...
Oil-Dri Expands Credit Facilities to Boost Financial Flexibility
PositiveOn October 7, 2026, Oil-Dri amended its long-standing credit agreement with BMO Bank, raising the maximum availability on its revolving line of credit from $75 million to $100 million and expanding the accordion feature to permit significantly larger...
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.
Date of analysis: Oct 09, 2026