ODC

Oil-Dri Corp of America

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Basic Materials

industry

Specialty Chemicals

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/04/26

Business Summary

Oil-Dri Corp of America operates in the specialty chemicals space, generating cash by processing and selling sorbent mineral-based products used across industrial and consumer applications. The business converts mineral inputs into value-added absorbent and filtration solutions, allowing for margin expansion beyond raw material pricing. Its moat comes from application-specific formulations, customer integration into industrial workflows, and established distribution relationships that reduce switching incentives. Strong operating margins and consistent capital returns indicate the company has carved out defensible niches rather than competing purely on commodity volume.

 


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VALUATION

P/E

20.1

Market Cap ($M USD)

$1,054

Forward P/E

-

PEG

-

PRICE TO SALES

2.7

PRICE TO BOOK

3.9

EV / EBITDA

12

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

1.00%

Annual Payout

$0.82

Payout Ratio

17.20%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

9.50%

Financial Health & Profitability

Earnings Per Share

$3.89

Next Year EPS Growth Estimate

-

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

18.50%

FREE CASH FLOW

Operating Margin

13.00%

Debt-to-Equity

0.2

Piotroski F-Score

6

Altman Z-Score

8.7

Return on Invested Capital (ROIC)

16.00%

Current Ratio

3.5

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 20.1x earnings with a 2.7x Price/Sales and 3.9x Price/Book, ODC is priced like a steady compounder, not a deep value cyclical. The absence of a Forward P/E and PEG removes forward visibility, which forces investors to rely heavily on current fundamentals rather than projected acceleration. However, an Altman Z-Score of 8.7 signals extremely low bankruptcy risk, and a 16.00% ROIC combined with an 18.50% operating margin suggests this is a financially durable operator rather than a speculative materials play. The market is not obviously mispricing distress, but it may be underappreciating balance sheet strength and capital efficiency. This is a quality industrial compounder priced fairly, not cheaply, with downside protection embedded in its financial stability.

AI Exposure / Tech Reliance

As a Specialty Chemicals company in Basic Materials, ODC is not directly exposed to AI disruption risk. Its resilience lies in industrial demand cycles rather than technological obsolescence. AI may optimize manufacturing and supply chains, but the core revenue drivers remain physical product demand and operational efficiency.

The Bull Case

A GARP investor would be attracted to the combination of 16.00% ROIC and an 18.50% operating margin, which signals disciplined capital allocation and pricing power in a commoditized sector. The Piotroski F-Score of 6 reflects solid but not euphoric financial health, consistent with a stable mid-cycle operator. Debt/Equity at 13.00% is conservative, and a Current Ratio of 3.5 indicates strong liquidity, reducing refinancing risk and allowing management flexibility. The Altman Z-Score of 8.7 further reinforces financial durability, while a modest 20.1 P/E for a company producing double-digit capital returns is reasonable for long-term compounding. This is the type of balance sheet strength and capital efficiency profile institutions favor during uncertain macro periods.

The Bear Case

The red flags are growth opacity and sentiment risk. There is no Forward P/E, no PEG ratio, no Sales Growth Next Year estimate, and no Mean Consensus Target Price, leaving investors blind on forward acceleration. Short interest at 9.50% of float is elevated enough to suggest skepticism around earnings durability. The 0.2 TTM yield paired with a payout ratio listed at $0.82 creates ambiguity around capital return clarity, and a Price/Sales of 2.7 in a materials business assumes margins hold at 18.50% without compression. If margins revert or growth stalls, 20.1x earnings could compress quickly.

Market Sentiment & Smart Money

Short Interest %

4.90%

Analyst Consensus

-

Average Analyst Price Target

-

Institutional Ownership %

71.80%

1-Year Beta

0.37

Insider Buying % (6 Mo)

4.70%%

Distance to 52-Week High

99.80%

Distance to 52-Week Low

176.00%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.