company background image
ORI

OricaASX:ORI Stock Report

Last Price

AU$13.93

Market Cap

AU$5.7b

7D

4.4%

1Y

-12.2%

Updated

20 Jan, 2022

Data

Company Financials +
ORI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends1/6

ORI Stock Overview

Orica Limited manufactures and sells commercial explosives and blasting systems in Australia, the United States, and internationally.

Orica Competitors

Linde

NYSE:LIN

US$163.8b

Nutrien

TSX:NTR

CA$52.7b

CF Industries Holdings

NYSE:CF

US$14.3b

South32

ASX:S32

AU$19.4b

Price History & Performance

Summary of all time highs, changes and price drops for Orica
Historical stock prices
Current Share PriceAU$13.93
52 Week HighAU$15.90
52 Week LowAU$11.17
Beta0.61
1 Month Change2.35%
3 Month Change-7.81%
1 Year Change-12.17%
3 Year Change-20.13%
5 Year Change-27.64%
Change since IPO152.36%

Recent News & Updates

Nov 16
These 4 Measures Indicate That Orica (ASX:ORI) Is Using Debt Extensively

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...

Oct 25
Orica (ASX:ORI) Could Be Struggling To Allocate Capital

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

ORIAU ChemicalsAU Market
7D4.4%-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

Is ORI's price volatile compared to industry and market?
ORI volatility
ORI Average Weekly Movement3.4%
Chemicals Industry Average Movement8.9%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.3%
10% least volatile stocks in AU Market3.6%

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

FoundedEmployeesCEOWebsite
187413,000Sanjeev Kumar Gandhihttps://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

How do Orica's earnings and revenue compare to its market cap?
ORI fundamental statistics
Market CapAU$5.71b
Earnings (TTM)-AU$188.40m
Revenue (TTM)AU$5.24b

1.1x

P/S Ratio

-30.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORI income statement (TTM)
RevenueAU$5.24b
Cost of RevenueAU$3.11b
Gross ProfitAU$2.13b
ExpensesAU$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 Margin40.68%
Net Profit Margin-3.59%
Debt/Equity Ratio74.2%

How did ORI perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

-52%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 15:48
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.