Company Overview
Oil-Dri Corporation of America operates as a developer, manufacturer, and marketer of sorbent products across the United States and international markets. The business is segmented into two primary groups: Retail and Wholesale Products Group, and Business to Business Products Group, with operations also extending into the agricultural sector. The company functions within the Basic Materials sector, specifically serving the Specialty Chemicals industry, which implies a focus on essential chemical inputs used in various downstream applications. As of the latest reporting period, the enterprise holds a market capitalization of $916.29M and generated annual revenue of $478.94M, employing a workforce of 928 individuals. These financial figures indicate that the company operates as a mid-cap entity with a substantial revenue base, suggesting a stable market position that allows for diversified product offerings without the extreme volatility often associated with smaller capitalization firms.
Financial Health
The company reported total revenue of $478.94M over the trailing twelve months, resulting in a net income of $50.36M and an EBITDA of $85.12M. The significant gap between the $478.94M revenue and the $50.36M net income highlights a cost structure where operating expenses, including cost of goods sold, taxes, and administrative costs, consume approximately 89.0% of total revenue before reaching the bottom line. The business generated free cash flow of $32.43M, which provides the organization with financial flexibility to fund operations, service debt obligations, or pursue capital allocation initiatives without relying on external equity financing. Profitability metrics reveal a gross margin of 28.3%, an operating margin of 13.3%, and a profit margin of 11.0%, indicating that for every dollar of sales, the company retains 28.3 cents after direct production costs, 13.3 cents after operating expenses, and 11.0 cents after all expenses including interest and taxes. Regarding balance sheet strength, the company holds $46.93M in cash against $55.38M in total debt, resulting in a debt-to-equity ratio of 20.33, which suggests a leveraged but manageable capital structure given the asset base. Liquidity is robust, evidenced by a current ratio of 3.45, which indicates that the company possesses more than three times the liquid assets necessary to cover its short-term liabilities. Management effectiveness is quantified by a return on equity of 20.7% and a return on assets of 10.5%, demonstrating that the company generates significant returns relative to both the shareholders' equity and the total asset base employed.
Valuation Assessment
The stock carries a trailing P/E ratio of 17.48, while the forward P/E is listed as N/A, implying that analysts have not yet established a consensus price-to-earnings expectation based on projected forward earnings. The absence of a forward P/E metric suggests that future earnings estimates may be insufficiently mature or standardized to support a reliable forward valuation multiple at this time. The price-to-book ratio stands at 3.36, indicating that the market values the company at a premium of roughly 236% over its book value, reflecting investor confidence in the brand equity, intangible assets, and future earning potential beyond the tangible asset base. Alternative valuation metrics include a price-to-sales ratio of 1.91 and an EV/EBITDA of 10.86, which together suggest the company is valued slightly above its sales revenue and trades at a moderate multiple of its earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week high of $70.01 and a 52-week low of $41.37, and without a specific current price listed in the provided facts, the valuation range is defined strictly by these historical bounds. The beta value is 0.77, which signifies that the stock's price volatility is historically lower than the broader market, moving approximately 23% less than the market index during periods of fluctuation.
Growth & Income
Recent performance data shows a revenue growth rate of 0.7% year-over-year and an earnings growth rate of -2.1% year-over-year. The fact that earnings are growing slower than revenue, or in this specific case declining while revenue remains flat, implies that cost pressures or margin compression are currently outweighing top-line expansion efforts. As a dividend payer, the company offers a dividend yield of 1.3% with a payout ratio of 18.5%. This low payout ratio indicates a high degree of sustainability, as the company retains the vast majority of its earnings, allowing it to maintain dividend coverage even if earnings were to decline further. The conservative payout ratio provides a buffer against the recent negative earnings growth, ensuring that the dividend remains secure relative to the current profitability levels. Overall, the growth and income profile presents a mature business with minimal top-line expansion and a slight contraction in earnings, yet it supports a modest, sustainable income stream for shareholders through a reliable dividend policy.