| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 1/6 |
ORI Stock Overview
Orica Limited manufactures and sells commercial explosives and blasting systems in Australia, the United States, and internationally.
Orica Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$13.93 |
| 52 Week High | AU$15.90 |
| 52 Week Low | AU$11.17 |
| Beta | 0.61 |
| 1 Month Change | 2.35% |
| 3 Month Change | -7.81% |
| 1 Year Change | -12.17% |
| 3 Year Change | -20.13% |
| 5 Year Change | -27.64% |
| Change since IPO | 152.36% |
Recent News & Updates
These 4 Measures Indicate That Orica (ASX:ORI) Is Using Debt Extensively
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Orica (ASX:ORI) Could Be Struggling To Allocate Capital
When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...
Shareholder Returns
| ORI | AU Chemicals | AU Market | |
|---|---|---|---|
| 7D | 4.4% | -0.3% | -1.7% |
| 1Y | -12.2% | 8.8% | 7.7% |
Return vs Industry: ORI underperformed the Australian Chemicals industry which returned 8.8% over the past year.
Return vs Market: ORI underperformed the Australian Market which returned 7.7% over the past year.
Price Volatility
| ORI volatility | |
|---|---|
| ORI Average Weekly Movement | 3.4% |
| Chemicals Industry Average Movement | 8.9% |
| Market Average Movement | 8.5% |
| 10% most volatile stocks in AU Market | 15.3% |
| 10% least volatile stocks in AU Market | 3.6% |
Stable Share Price: ORI is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ORI's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1874 | 13,000 | Sanjeev Kumar Gandhi | https://www.orica.com |
Orica Limited manufactures and sells commercial explosives and blasting systems in Australia, the United States, and internationally. The company provides 4D bulk explosives systems, packaged explosives, initiating systems, boosters, and seismic systems; and data, reporting, analytics, blasting, contracted, and supplementary services. It also offers automation solutions, including Avatel, a machine equipped with underground development charging system; and secondary breakage and hang up blasting, a tele-remote blasting solution.
Orica Fundamentals Summary
| ORI fundamental statistics | |
|---|---|
| Market Cap | AU$5.71b |
| Earnings (TTM) | -AU$188.40m |
| Revenue (TTM) | AU$5.24b |
1.1x
P/S Ratio-30.3x
P/E RatioIs ORI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ORI income statement (TTM) | |
|---|---|
| Revenue | AU$5.24b |
| Cost of Revenue | AU$3.11b |
| Gross Profit | AU$2.13b |
| Expenses | AU$2.32b |
| Earnings | -AU$188.40m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
May 12, 2022
| Earnings per share (EPS) | -0.46 |
| Gross Margin | 40.68% |
| Net Profit Margin | -3.59% |
| Debt/Equity Ratio | 74.2% |
How did ORI perform over the long term?
See historical performance and comparisonDividends
1.7%
Current Dividend Yield-52%
Payout RatioValuation
Is Orica undervalued compared to its fair value and its price relative to the market?
23.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ORI (A$13.93) is trading below our estimate of fair value (A$18.26)
Significantly Below Fair Value: ORI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ORI is unprofitable, so we can't compare its PE Ratio to the Australian Chemicals industry average.
PE vs Market: ORI is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ORI's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ORI is good value based on its PB Ratio (2.1x) compared to the AU Chemicals industry average (4.1x).
Future Growth
How is Orica forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
52.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ORI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: ORI is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ORI's is expected to become profitable in the next 3 years.
Revenue vs Market: ORI's revenue (4.5% per year) is forecast to grow slower than the Australian market (4.9% per year).
High Growth Revenue: ORI's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ORI's Return on Equity is forecast to be low in 3 years time (11.9%).
Past Performance
How has Orica performed over the past 5 years?
-28.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ORI is currently unprofitable.
Growing Profit Margin: ORI is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ORI is unprofitable, and losses have increased over the past 5 years at a rate of 28.7% per year.
Accelerating Growth: Unable to compare ORI's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ORI is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-51.9%).
Return on Equity
High ROE: ORI has a negative Return on Equity (-6.39%), as it is currently unprofitable.
Financial Health
How is Orica's financial position?
Financial Position Analysis
Short Term Liabilities: ORI's short term assets (A$2.4B) exceed its short term liabilities (A$1.7B).
Long Term Liabilities: ORI's short term assets (A$2.4B) do not cover its long term liabilities (A$2.9B).
Debt to Equity History and Analysis
Debt Level: ORI's net debt to equity ratio (54.5%) is considered high.
Reducing Debt: ORI's debt to equity ratio has increased from 67.3% to 74.2% over the past 5 years.
Debt Coverage: ORI's debt is well covered by operating cash flow (29.9%).
Interest Coverage: ORI's interest payments on its debt are well covered by EBIT (3x coverage).
Balance Sheet
Dividend
What is Orica current dividend yield, its reliability and sustainability?
1.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ORI's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.21%).
High Dividend: ORI's dividend (1.72%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).
Stability and Growth of Payments
Stable Dividend: ORI's dividend payments have been volatile in the past 10 years.
Growing Dividend: ORI's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: ORI is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: ORI's dividends in 3 years are forecast to be covered by earnings (56.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Sanjeev Kumar Gandhi (55 yo)
0.75
Tenure
AU$1,998,100
Compensation
Mr. Sanjeev Kumar Gulab Gandhi, BEng (Chemical Engineering), MBA, has been Managing Director, Chief Executive Officer and Executive Director at Orica Limited since April 01, 2021. Mr. Gandhi served as Pres...
CEO Compensation Analysis
Compensation vs Market: Sanjeev Kumar's total compensation ($USD1.44M) is about average for companies of similar size in the Australian market ($USD1.71M).
Compensation vs Earnings: Sanjeev Kumar's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: ORI's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: ORI's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ORI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Orica Limited's employee growth, exchange listings and data sources
Key Information
- Name: Orica Limited
- Ticker: ORI
- Exchange: ASX
- Founded: 1874
- Industry: Commodity Chemicals
- Sector: Materials
- Implied Market Cap: AU$5.714b
- Shares outstanding: 410.16m
- Website: https://www.orica.com
Number of Employees
Location
- Orica Limited
- 1 Nicholson Street
- East Melbourne
- Victoria
- 3002
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/20 15:48 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.