DB:OIC

Stock Analysis Report

Executive Summary

OCI N.V. produces and distributes natural gas-based fertilizers and industrial chemicals to agricultural and industrial customers.

Rewards

Trading at 65.4% below its fair value

Earnings are forecast to grow 72.57% per year

Risk Analysis

No risks detected for OIC from our risk checks.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has OCI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OIC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

OIC

1.4%

DE Chemicals

1.7%

DE Market


1 Year Return

-10.6%

OIC

-3.2%

DE Chemicals

15.0%

DE Market

Return vs Industry: OIC underperformed the German Chemicals industry which returned -3.2% over the past year.

Return vs Market: OIC underperformed the German Market which returned 15% over the past year.


Shareholder returns

OICIndustryMarket
7 Day-0.9%1.4%1.7%
30 Day-7.6%-0.3%0.8%
90 Day-6.4%-4.9%3.7%
1 Year-10.6%-10.6%0.6%-3.2%18.5%15.0%
3 Year-9.9%-9.9%-15.2%-23.3%17.1%6.9%
5 Year-33.7%-47.2%0.1%-15.2%24.3%7.3%

Price Volatility Vs. Market

How volatile is OCI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is OCI undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OIC (€16.69) is trading below our estimate of fair value (€48.19)

Significantly Below Fair Value: OIC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OIC is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: OIC is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OIC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OIC is overvalued based on its PB Ratio (2.5x) compared to the DE Chemicals industry average (1.8x).


Next Steps

Future Growth

How is OCI forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

72.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OIC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: OIC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OIC's is expected to become profitable in the next 3 years.

Revenue vs Market: OIC's revenue (8.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: OIC's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OIC's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has OCI performed over the past 5 years?

-59.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OIC is currently unprofitable.

Growing Profit Margin: OIC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OIC is unprofitable, and losses have increased over the past 5 years at a rate of -59.3% per year.

Accelerating Growth: Unable to compare OIC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OIC is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-10.8%).


Return on Equity

High ROE: OIC has a negative Return on Equity (-6.01%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OCI's financial position?


Financial Position Analysis

Short Term Liabilities: OIC's short term assets ($1.3B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: OIC's short term assets ($1.3B) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: OIC's debt to equity ratio (145.7%) is considered high.

Reducing Debt: OIC's debt to equity ratio has reduced from 232.8% to 145.7% over the past 5 years.


Balance Sheet

Inventory Level: OIC has a high level of physical assets or inventory.

Debt Coverage by Assets: OIC's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable OIC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OIC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 52.5% per year.


Next Steps

Dividend

What is OCI's current dividend yield, its reliability and sustainability?

2.68%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage4.1%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate OIC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate OIC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OIC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OIC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OIC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Nassef Onssy Sawiris (58yo)

7.1yrs

Tenure

US$6,290,967

Compensation

Mr. Nassef Onssy Naguib Sawiris has been the Chief Executive Officer of OCI N.V. since January 25, 2013. Mr. Sawiris serves as Vice Chairman of BESIX Group SA. Mr. Sawiris has been an Executive Director of ...


CEO Compensation Analysis

Compensation vs Market: Nassef Onssy's total compensation ($USD6.29M) is above average for companies of similar size in the German market ($USD2.02M).

Compensation vs Earnings: Nassef Onssy's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Nassef Onssy Sawiris
CEO & Executive Director7.1yrsUS$6.29m29.99% $1.1b
Hassan Badrawi
Group CFO1.8yrsUS$2.40m0.052% $1.8m
Ahmed El-Hoshy
Group Chief Operating Officer0.3yrsno datano data
Hans Zayed
Director of Investor Relations0yrsno datano data
Maud de Vries
General Counsel0.7yrsno data0.0045% $158.0k
Renso Zwiers
Chief Operating Officer - OCI Fertilizer & Chemicals Group0yrsno datano data
Dalia Khorshid
Group Corporate Treasurer0yrsno datano data
Salman Butt
2.3yrsUS$5.60mno data

2.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: OIC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nassef Onssy Sawiris
CEO & Executive Director7.1yrsUS$6.29m29.99% $1.1b
Hassan Badrawi
Group CFO1.8yrsUS$2.40m0.052% $1.8m
Maud de Vries
General Counsel0.7yrsno data0.0045% $158.0k
Michael Bennett
Independent Chairman7.1yrsno data0.0065% $226.0k
Gregory Heckman
Independent Non-Executive Director4.7yrsno data0.019% $669.5k
Sipko Schat
Senior Independent Non-Executive Director0yrsno data0.0024% $83.7k
Robert van de Kraats
Independent Non-Executive Director5.7yrsno data0.0018% $62.4k
Jérôme Guiraud
Non-Executive Director5.7yrsno data0.057% $2.0m
Anja Montijn-Groenewoud
Independent Non-Executive Director3.7yrsno datano data
Jan Alberts Wisch
Independent Vice-Chairman7.1yrsno data0.0048% $167.5k

5.7yrs

Average Tenure

58yo

Average Age

Experienced Board: OIC's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

OCI N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OCI N.V.
  • Ticker: OIC
  • Exchange: DB
  • Founded:
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: €3.504b
  • Shares outstanding: 209.30m
  • Website: https://www.oci.nl

Number of Employees


Location

  • OCI N.V.
  • Honthorststraat 19
  • Amsterdam
  • Noord-Holland
  • 1071 DC
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCIENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 2013
OCIN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2013
OICDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2013
0QGHLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2013
OCIABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2013

Biography

OCI N.V. produces and distributes natural gas-based fertilizers and industrial chemicals to agricultural and industrial customers. It operates through Methanol US, Methanol Europe, Nitrogen US, Nitrogen Europe, and Nitrogen MENA segments. The company offers anhydrous ammonia in liquid and gaseous form, granular urea, urea ammonium nitrate solution, calcium ammonium nitrate, methanol, melamine, and diesel exhaust fluid. It also owns and operates an ammonia export terminal at the port of Rotterdam. The company has operations in Europe, the Americas, the Middle East, Africa, Asia, and Oceania. OCI N.V. has a strategic partnership with Abu Dhabi National Oil Company. OCI N.V. is headquartered in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:02
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.