ORION SA (OEC)
LU1092234845 - Common Stock
OEC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. OEC has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OEC.
1. Profitability
1.1 Basic Checks
In the past year OEC was profitable.
In the past year OEC had a positive cash flow from operations.
In the past 5 years OEC has always been profitable.
OEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.65%, OEC is doing good in the industry, outperforming 76.19% of the companies in the same industry.
OEC has a better Return On Equity (21.63%) than 90.48% of its industry peers.
OEC has a better Return On Invested Capital (9.60%) than 84.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OEC is above the industry average of 7.00%.
The last Return On Invested Capital (9.60%) for OEC is above the 3 year average (9.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 21.63% | ||
| ROIC | 9.6% |
ROA(3y)6.51%
ROA(5y)5.55%
ROE(3y)28.96%
ROE(5y)28.73%
ROIC(3y)9.08%
ROIC(5y)8.49%
1.3 Margins
OEC's Profit Margin of 5.46% is fine compared to the rest of the industry. OEC outperforms 63.10% of its industry peers.
In the last couple of years the Profit Margin of OEC has declined.
OEC has a Operating Margin of 10.84%. This is comparable to the rest of the industry: OEC outperforms 58.33% of its industry peers.
OEC's Operating Margin has been stable in the last couple of years.
OEC's Gross Margin of 23.81% is in line compared to the rest of the industry. OEC outperforms 46.43% of its industry peers.
In the last couple of years the Gross Margin of OEC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.84% | ||
| PM (TTM) | 5.46% | ||
| GM | 23.81% |
OM growth 3Y14.53%
OM growth 5Y-0.07%
PM growth 3Y50.55%
PM growth 5Y-6.59%
GM growth 3Y-2.54%
GM growth 5Y-2.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OEC is still creating some value.
The number of shares outstanding for OEC has been reduced compared to 1 year ago.
The number of shares outstanding for OEC has been reduced compared to 5 years ago.
Compared to 1 year ago, OEC has an improved debt to assets ratio.
2.2 Solvency
OEC has an Altman-Z score of 2.51. This is not the best score and indicates that OEC is in the grey zone with still only limited risk for bankruptcy at the moment.
OEC has a Altman-Z score of 2.51. This is in the better half of the industry: OEC outperforms 69.05% of its industry peers.
OEC has a debt to FCF ratio of 5.23. This is a neutral value as OEC would need 5.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.23, OEC is in the better half of the industry, outperforming 70.24% of the companies in the same industry.
OEC has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
OEC has a worse Debt to Equity ratio (1.59) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.72
WACC5.59%
2.3 Liquidity
A Current Ratio of 1.47 indicates that OEC should not have too much problems paying its short term obligations.
OEC has a Current ratio of 1.47. This is in the lower half of the industry: OEC underperforms 77.38% of its industry peers.
OEC has a Quick Ratio of 1.47. This is a bad value and indicates that OEC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.82, OEC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
OEC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.53%.
Measured over the past years, OEC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.58% on average per year.
The Revenue has decreased by -6.75% in the past year.
OEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.71% yearly.
EPS 1Y (TTM)-2.53%
EPS 3Y22.89%
EPS 5Y-2.58%
EPS growth Q2Q-34.62%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y18.56%
Revenue growth 5Y3.71%
Revenue growth Q2Q1.32%
3.2 Future
OEC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.22% yearly.
Based on estimates for the next years, OEC will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y12.86%
EPS Next 2Y15.56%
EPS Next 3Y16.22%
EPS Next 5YN/A
Revenue Next Year7.7%
Revenue Next 2Y7.07%
Revenue Next 3Y7.38%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.33, the valuation of OEC can be described as correct.
OEC's Price/Earnings ratio is a bit cheaper when compared to the industry. OEC is cheaper than 79.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.83, OEC is valued rather cheaply.
A Price/Forward Earnings ratio of 11.81 indicates a reasonable valuation of OEC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OEC indicates a somewhat cheap valuation: OEC is cheaper than 79.76% of the companies listed in the same industry.
OEC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OEC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OEC is valued cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.61 | ||
| EV/EBITDA | 7.36 |
4.3 Compensation for Growth
OEC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of OEC may justify a higher PE ratio.
A more expensive valuation may be justified as OEC's earnings are expected to grow with 16.22% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y15.56%
EPS Next 3Y16.22%
5. Dividend
5.1 Amount
OEC has a yearly dividend return of 0.34%, which is pretty low.
Compared to an average industry Dividend Yield of 3.11, OEC is paying slightly less dividend.
With a Dividend Yield of 0.34, OEC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
The dividend of OEC decreases each year by -36.53%.
OEC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-36.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
4.73% of the earnings are spent on dividend by OEC. This is a low number and sustainable payout ratio.
DP4.73%
EPS Next 2Y15.56%
EPS Next 3Y16.22%
ORION SA
NYSE:OEC (5/16/2024, 7:08:34 PM)
After market: 25.73 0 (0%)25.73
+0.26 (+1.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 21.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.84% | ||
| PM (TTM) | 5.46% | ||
| GM | 23.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.53%
EPS 3Y22.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y18.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y