ENXTAM:OCI

Stock Analysis Report

Executive Summary

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

Snowflake

High growth potential and slightly overvalued.


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: OCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

OCI

3.2%

NL Chemicals

1.0%

NL Market


1 Year Return

-16.6%

OCI

17.6%

NL Chemicals

9.0%

NL Market

Return vs Industry: OCI underperformed the Dutch Chemicals industry which returned 17.6% over the past year.

Return vs Market: OCI underperformed the Dutch Market which returned 9% over the past year.


Shareholder returns

OCIIndustryMarket
7 Day-0.1%3.2%1.0%
30 Day-2.0%5.2%2.0%
90 Day4.3%7.5%9.2%
1 Year-16.6%-16.6%28.8%17.6%13.9%9.0%
3 Year55.9%55.9%92.4%62.6%47.1%31.0%
5 Year-6.4%-25.0%100.7%57.5%66.1%33.3%

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

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: OCI (€20.89) is trading below our estimate of fair value (€52.59)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OCI is overvalued based on its PB Ratio (5.2x) compared to the NL Chemicals industry average (2.6x).


Next Steps

Future Growth

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

70.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: OCI's revenue (10.9% per year) is forecast to grow faster than the Dutch market (5.3% per year).

High Growth Revenue: OCI's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCI's Return on Equity is forecast to be high in 3 years time (27.8%)


Next Steps

Past Performance

How has OCI performed over the past 5 years?

-57.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCI has large one-off items impacting its financial results.

Growing Profit Margin: OCI's current net profit margins (-2.9%) are higher than last year (-3%).


Past Earnings Growth Analysis

Earnings Trend: OCI is unprofitable, and losses have increased over the past 5 years at a rate of -57.5% per year.

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

Earnings vs Industry: OCI is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-10.1%).


Return on Equity

High ROE: OCI has a negative Return on Equity (-0.38%), 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: OCI's short term assets ($1.2B) do not cover its short term liabilities ($1.3B)

Long Term Liabilities: OCI's short term assets (1.2B) do not cover its long term liabilities (4.6B)


Debt to Equity History and Analysis

Debt Level: OCI's debt to equity ratio (321.1%) is considered high

Reducing Debt: OCI's debt to equity ratio has increased from 276.5% to 321.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: OCI'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 OCI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OCI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 114.2% per year.


Next Steps

Dividend

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

2.22%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.1%markettop25%5.5%industryaverage2.3%forecastin3Years2.2%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate OCI'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 OCI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OCI'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 OCI's dividend in 3 years as they are not forecast to pay a notable one for the Dutch market.


Next Steps

Management

What is the CEO of OCI's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Nassef Onssy Sawiris (58yo)

6.8yrs

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 ($USD6.29M) is above average for companies of similar size in the Dutch market ($USD2.43M).

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


Management Age and Tenure

2.1yrs

Average Tenure

59yo

Average Age

Experienced Management: OCI's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: OCI's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

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.


Management Team

  • Renso Zwiers (64yo)

    Chief Operating Officer - OCI Fertilizer & Chemicals Group

    • Tenure: 0yrs
  • Nassef Onssy Sawiris (58yo)

    CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$6.29m
  • Hassan Badrawi (43yo)

    Group CFO & Executive Director

    • Tenure: 1.5yrs
    • Compensation: US$2.40m
  • Salman Butt (60yo)

    • Tenure: 2.1yrs
    • Compensation: US$5.60m
  • Maud de Vries

    General Counsel and Executive VP of Legal & HR

    • Tenure: 0yrs
  • Hans Zayed

    Director of Investor Relations

    • Tenure: 0yrs
  • Dalia Khorshid

    Group Corporate Treasurer

    • Tenure: 0yrs

Board Members

  • Michael Bennett (66yo)

    Independent Chairman

    • Tenure: 6.8yrs
  • Dod Fraser (69yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Greg Heckman (57yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
  • Sipko Schat (59yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
  • Robert van de Kraats (59yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
  • Jérôme Guiraud (58yo)

    Non-Executive Director

    • Tenure: 5.4yrs
  • Nassef Onssy Sawiris (58yo)

    CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$6.29m
  • Hassan Badrawi (43yo)

    Group CFO & Executive Director

    • Tenure: 1.5yrs
    • Compensation: US$2.40m
  • Anja Montijn-Groenewoud (57yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
  • Jan Alberts Wisch (67yo)

    Independent Vice-Chairman

    • Tenure: 6.8yrs

Company Information

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


Key Information

  • Name: OCI N.V.
  • Ticker: OCI
  • Exchange: ENXTAM
  • Founded:
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: €4.372b
  • 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 Eu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:50
End of Day Share Price2019/11/12 00:00
Earnings2019/06/30
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.