ORION SA (OEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OEC - LU1092234845 - Common Stock
6.38 USD
-0.05 (-0.78%)
6.26 USD
-0.12 (-1.88%)
Taking everything into account, OEC scores 3 out of 10 in our fundamental rating. OEC was compared to 82 industry peers in the Chemicals industry. OEC has a medium profitability rating, but doesn't score so well on its financial health evaluation. OEC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year OEC was profitable.
- OEC had a positive operating cash flow in the past year.
- Each year in the past 5 years OEC has been profitable.
- Each year in the past 5 years OEC had a positive operating cash flow.
1.2 Ratios
- OEC's Return On Assets of -1.62% is on the low side compared to the rest of the industry. OEC is outperformed by 60.98% of its industry peers.
- The Return On Equity of OEC (-7.91%) is worse than 64.63% of its industry peers.
- With a decent Return On Invested Capital value of 5.74%, OEC is doing good in the industry, outperforming 64.63% 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 6.11%.
- The 3 year average ROIC (10.04%) for OEC is well above the current ROIC(5.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.62% | ||
| ROE | -7.91% | ||
| ROIC | 5.74% |
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's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 5.76%, OEC is in line with its industry, outperforming 43.90% of the companies in the same industry.
- OEC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 20.30%, OEC is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of OEC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.76% | ||
| PM (TTM) | N/A | ||
| GM | 20.3% |
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
- OEC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 1.56. This is a bad value and indicates that OEC is not financially healthy and even has some risk of bankruptcy.
- OEC has a worse Altman-Z score (1.56) than 63.41% of its industry peers.
- OEC has a debt to FCF ratio of 29.62. This is a negative value and a sign of low solvency as OEC would need 29.62 years to pay back of all of its debts.
- OEC has a Debt to FCF ratio (29.62) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.69 is on the high side and indicates that OEC has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.69, OEC is doing worse than 79.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 29.62 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.86
WACC6.68%
2.3 Liquidity
- OEC has a Current Ratio of 1.08. This is a normal value and indicates that OEC is financially healthy and should not expect problems in meeting its short term obligations.
- OEC's Current ratio of 1.08 is on the low side compared to the rest of the industry. OEC is outperformed by 90.24% of its industry peers.
- OEC has a Quick Ratio of 1.08. 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 0.64 is on the low side compared to the rest of the industry. OEC is outperformed by 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The earnings per share for OEC have decreased strongly by -24.84% 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 -4.31%.
- OEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.92% yearly.
EPS 1Y (TTM)-24.84%
EPS 3Y0%
EPS 5Y0.11%
EPS Q2Q%-38.3%
Revenue 1Y (TTM)-4.31%
Revenue growth 3Y6.67%
Revenue growth 5Y4.92%
Sales Q2Q%-2.7%
3.2 Future
- Based on estimates for the next years, OEC will show a small growth in Earnings Per Share. The EPS will grow by 1.65% on average per year.
- Based on estimates for the next years, OEC will show a decrease in Revenue. The Revenue will decrease by -1.30% on average per year.
EPS Next Y-54.98%
EPS Next 2Y-31.05%
EPS Next 3Y-11.18%
EPS Next 5Y1.65%
Revenue Next Year-7.31%
Revenue Next 2Y-5.04%
Revenue Next 3Y-1.98%
Revenue Next 5Y-1.3%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.41, which indicates a rather cheap valuation of OEC.
- OEC's Price/Earnings ratio is rather cheap when compared to the industry. OEC is cheaper than 95.12% of the companies in the same industry.
- OEC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 7.67, which indicates a rather cheap valuation of OEC.
- 92.68% of the companies in the same industry are more expensive than OEC, based on the Price/Forward Earnings ratio.
- OEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.41 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
- 91.46% of the companies in the same industry are more expensive than OEC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, OEC is valued cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.51 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
- A cheap valuation may be justified as OEC's earnings are expected to decrease with -11.18% in the coming years.
PEG (NY)N/A
PEG (5Y)47.15
EPS Next 2Y-31.05%
EPS Next 3Y-11.18%
5. Dividend
5.1 Amount
- OEC has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
- OEC's Dividend Yield is comparable with the industry average which is at 2.28.
- OEC's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
- The dividend of OEC decreases each year by -36.41%.
- OEC has been paying a dividend for at least 10 years, so it has 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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-14.78%
EPS Next 2Y-31.05%
EPS Next 3Y-11.18%
ORION SA / OEC FAQ
Can you provide the ChartMill fundamental rating for ORION SA?
ChartMill assigns a fundamental rating of 3 / 10 to OEC.
What is the valuation status for OEC stock?
ChartMill assigns a valuation rating of 7 / 10 to ORION SA (OEC). This can be considered as Undervalued.
How profitable is ORION SA (OEC) stock?
ORION SA (OEC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for OEC stock?
The Price/Earnings (PE) ratio for ORION SA (OEC) is 5.41 and the Price/Book (PB) ratio is 0.89.
How financially healthy is ORION SA?
The financial health rating of ORION SA (OEC) is 2 / 10.