ORION SA (OEC) Stock Fundamental Analysis
NYSE:OEC - New York Stock Exchange, Inc. - LU1092234845 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OEC. OEC was compared to 85 industry peers in the Chemicals industry. OEC has a medium profitability rating, but doesn't score so well on its financial health evaluation. OEC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OEC was profitable.
OEC had a positive operating cash flow in the past year.
OEC had positive earnings in each of the past 5 years.
Each year in the past 5 years OEC had a positive operating cash flow.
1.2 Ratios
OEC's Return On Assets of 2.32% is in line compared to the rest of the industry. OEC outperforms 57.65% of its industry peers.
OEC's Return On Equity of 8.77% is fine compared to the rest of the industry. OEC outperforms 67.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.27%, OEC is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OEC is above the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 8.77% | ||
| ROIC | 8.27% |
ROA(3y)4.55%
ROA(5y)4.64%
ROE(3y)18.02%
ROE(5y)21.25%
ROIC(3y)10.04%
ROIC(5y)8.92%
1.3 Margins
OEC has a Profit Margin (2.35%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OEC has declined.
Looking at the Operating Margin, with a value of 8.63%, OEC is in line with its industry, outperforming 48.24% of the companies in the same industry.
In the last couple of years the Operating Margin of OEC has declined.
OEC's Gross Margin of 22.84% is in line compared to the rest of the industry. OEC outperforms 42.35% of its industry peers.
OEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.63% | ||
| PM (TTM) | 2.35% | ||
| GM | 22.84% |
OM growth 3Y-2.86%
OM growth 5Y-3.48%
PM growth 3Y-35.34%
PM growth 5Y-16.75%
GM growth 3Y-2.96%
GM growth 5Y-2.85%
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.
Compared to 5 years ago, OEC has less shares outstanding
OEC has a worse debt/assets ratio than last year.
2.2 Solvency
OEC has an Altman-Z score of 1.99. 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.
With a Altman-Z score value of 1.99, OEC perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
OEC has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.31, OEC is not doing good in the industry: 74.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.99 |
ROIC/WACC1.25
WACC6.59%
2.3 Liquidity
OEC has a Current Ratio of 1.39. This is a normal value and indicates that OEC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.39, OEC is doing worse than 70.59% of the companies in the same industry.
OEC has a Quick Ratio of 1.39. This is a bad value and indicates that OEC is not financially healthy enough and could expect problems in meeting its short term obligations.
OEC's Quick ratio of 0.80 is on the low side compared to the rest of the industry. OEC is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for OEC have decreased strongly by -15.20% in the last year.
The Earnings Per Share has been growing slightly by 0.11% on average over the past years.
OEC shows a decrease in Revenue. In the last year, the revenue decreased by -0.87%.
OEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.92% yearly.
EPS 1Y (TTM)-15.2%
EPS 3Y0%
EPS 5Y0.11%
EPS Q2Q%-57.69%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y6.67%
Revenue growth 5Y4.92%
Sales Q2Q%-5.01%
3.2 Future
Based on estimates for the next years, OEC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.30% on average per year.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y-5.75%
EPS Next 2Y7.23%
EPS Next 3Y9.3%
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y2.77%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.68, which indicates a rather cheap valuation of OEC.
Based on the Price/Earnings ratio, OEC is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.85, OEC is valued rather cheaply.
A Price/Forward Earnings ratio of 5.54 indicates a rather cheap valuation of OEC.
OEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OEC is cheaper than 95.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, OEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 5.54 |
4.2 Price Multiples
OEC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OEC is cheaper than 91.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)66.99
EPS Next 2Y7.23%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
OEC has a yearly dividend return of 0.74%, which is pretty low.
The stock price of OEC dropped by -22.80% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.77, OEC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, OEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of OEC decreases each year by -36.41%.
OEC has paid a dividend for at least 10 years, which is a reliable track record.
OEC has decreased its dividend recently.
Dividend Growth(5Y)-36.41%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
OEC pays out 10.86% of its income as dividend. This is a sustainable payout ratio.
DP10.86%
EPS Next 2Y7.23%
EPS Next 3Y9.3%
11.14
-0.21 (-1.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.68%
Inst Owner Change-1.53%
Ins Owners2.52%
Ins Owner Change6.04%
Market Cap627.40M
Analysts77.78
Price Target18.36 (64.81%)
Short Float %1.4%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend0.08
Dividend Growth(5Y)-36.41%
DP10.86%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.55%
Min EPS beat(2)-1.67%
Max EPS beat(2)58.78%
EPS beat(4)2
Avg EPS beat(4)8.94%
Min EPS beat(4)-28.15%
Max EPS beat(4)58.78%
EPS beat(8)5
Avg EPS beat(8)3.87%
EPS beat(12)8
Avg EPS beat(12)6.68%
EPS beat(16)11
Avg EPS beat(16)4.62%
Revenue beat(2)0
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-1.63%
Revenue beat(4)0
Avg Revenue beat(4)-2.93%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)-1.63%
Revenue beat(8)1
Avg Revenue beat(8)-2.9%
Revenue beat(12)5
Avg Revenue beat(12)0.09%
Revenue beat(16)8
Avg Revenue beat(16)1.02%
PT rev (1m)-15.29%
PT rev (3m)-17.43%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)4.15%
EPS NY rev (1m)-3.85%
EPS NY rev (3m)-7.93%
Revenue NQ rev (1m)-2.67%
Revenue NQ rev (3m)-3.31%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-4.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 5.54 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | 5.01 | ||
| P/B | 1.25 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 5.01 |
EPS(TTM)1.45
EY13.02%
EPS(NY)2.01
Fwd EY18.06%
FCF(TTM)-1.45
FCFYN/A
OCF(TTM)2.22
OCFY19.97%
SpS33.34
BVpS8.95
TBVpS7.24
PEG (NY)N/A
PEG (5Y)66.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 8.77% | ||
| ROCE | 11.41% | ||
| ROIC | 8.27% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 9.1% | ||
| OM | 8.63% | ||
| PM (TTM) | 2.35% | ||
| GM | 22.84% | ||
| FCFM | N/A |
ROA(3y)4.55%
ROA(5y)4.64%
ROE(3y)18.02%
ROE(5y)21.25%
ROIC(3y)10.04%
ROIC(5y)8.92%
ROICexc(3y)10.49%
ROICexc(5y)9.4%
ROICexgc(3y)11.34%
ROICexgc(5y)10.32%
ROCE(3y)13.86%
ROCE(5y)12.32%
ROICexcg growth 3Y-2.89%
ROICexcg growth 5Y-7.29%
ROICexc growth 3Y-1.68%
ROICexc growth 5Y-5.77%
OM growth 3Y-2.86%
OM growth 5Y-3.48%
PM growth 3Y-35.34%
PM growth 5Y-16.75%
GM growth 3Y-2.96%
GM growth 5Y-2.85%
F-Score5
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 164.96% | ||
| Cap/Sales | 11.01% | ||
| Interest Coverage | 3.32 | ||
| Cash Conversion | 43.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.99 |
F-Score5
WACC6.59%
ROIC/WACC1.25
Cap/Depr(3y)179.38%
Cap/Depr(5y)178.91%
Cap/Sales(3y)10.53%
Cap/Sales(5y)11.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.2%
EPS 3Y0%
EPS 5Y0.11%
EPS Q2Q%-57.69%
EPS Next Y-5.75%
EPS Next 2Y7.23%
EPS Next 3Y9.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y6.67%
Revenue growth 5Y4.92%
Sales Q2Q%-5.01%
Revenue Next Year-0.32%
Revenue Next 2Y2.77%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y-21.09%
EBIT growth 3Y3.62%
EBIT growth 5Y1.27%
EBIT Next Year69.69%
EBIT Next 3Y26.1%
EBIT Next 5YN/A
FCF growth 1Y-147.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.78%
OCF growth 3Y-4.79%
OCF growth 5Y-11.55%