NasdaqCM:OBCI

Stock Analysis Report

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Market Cap

US$110.5m

Last Updated

2021/07/29 00:51 UTC

Data Sources

Company Financials

Executive Summary

Ocean Bio-Chem, Inc. manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, recreational vehicle, home care, and outdoor power equipment markets in the United States and Canada. More Details

Rewards

Trading at 3.7% below our estimate of its fair value

Earnings grew by 219.4% over the past year

Risk Analysis

OBCI passed our risk checks.


Snowflake Analysis

Outstanding track record with excellent balance sheet.

Share Price & News

How has Ocean Bio-Chem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OBCI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OBCI's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.8%

OBCI

0.7%

US Household Products

0.9%

US Market


1 Year Return

-27.4%

OBCI

7.2%

US Household Products

37.8%

US Market

Return vs Industry: OBCI underperformed the US Household Products industry which returned 7.2% over the past year.

Return vs Market: OBCI underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

OBCIIndustryMarket
7 Day-3.8%0.7%0.9%
30 Day-8.6%3.9%0.3%
90 Day-13.5%5.7%2.1%
1 Year-26.8%-27.4%9.7%7.2%40.0%37.8%
3 Year238.4%228.2%79.5%66.4%63.8%53.5%
5 Year475.0%441.9%83.3%59.9%124.6%99.7%

Long-Term Price Volatility Vs. Market

How volatile is Ocean Bio-Chem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ocean Bio-Chem undervalued compared to its fair value and its price relative to the market?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OBCI ($11.65) is trading below our estimate of fair value ($12.1)

Significantly Below Fair Value: OBCI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OBCI is good value based on its PE Ratio (10.1x) compared to the US Household Products industry average (16.3x).

PE vs Market: OBCI is good value based on its PE Ratio (10.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OBCI is good value based on its PB Ratio (2.7x) compared to the US Household Products industry average (5.2x).


Future Growth

How is Ocean Bio-Chem forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.3%

Forecasted Household industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ocean Bio-Chem has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Ocean Bio-Chem performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OBCI has high quality earnings.

Growing Profit Margin: OBCI's current net profit margins (17.9%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: OBCI has become profitable over the past 5 years, growing earnings by 39.1% per year.

Accelerating Growth: OBCI's earnings growth over the past year (219.4%) exceeds its 5-year average (39.1% per year).

Earnings vs Industry: OBCI earnings growth over the past year (219.4%) exceeded the Household Products industry 40.1%.


Return on Equity

High ROE: OBCI's Return on Equity (26.2%) is considered high.


Financial Health

How is Ocean Bio-Chem's financial position?


Financial Position Analysis

Short Term Liabilities: OBCI's short term assets ($38.6M) exceed its short term liabilities ($5.6M).

Long Term Liabilities: OBCI's short term assets ($38.6M) exceed its long term liabilities ($4.1M).


Debt to Equity History and Analysis

Debt Level: OBCI's debt to equity ratio (9.7%) is considered satisfactory.

Reducing Debt: OBCI's debt to equity ratio has increased from 3% to 9.7% over the past 5 years.

Debt Coverage: OBCI's debt is well covered by operating cash flow (177.7%).

Interest Coverage: OBCI's interest payments on its debt are well covered by EBIT (90.6x coverage).


Balance Sheet


Dividend

What is Ocean Bio-Chem current dividend yield, its reliability and sustainability?

1.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OBCI's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: OBCI's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.53%).


Stability and Growth of Payments

Stable Dividend: OBCI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OBCI's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.8%), OBCI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

14.1yrs

Average management tenure


CEO

Peter Dornau (81 yo)

48.5yrs

Tenure

US$318,965

Compensation

Mr. Peter G. Dornau co-founded Ocean Bio-Chem Inc. and has been its Chief Executive Officer, President, Chairman and Director since 1973.


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD318.97K) is below average for companies of similar size in the US market ($USD545.22K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: OBCI's management team is seasoned and experienced (14.1 years average tenure).


Board Members

Experienced Board: OBCI's board of directors are seasoned and experienced ( 13.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OBCI 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

Ocean Bio-Chem, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ocean Bio-Chem, Inc.
  • Ticker: OBCI
  • Exchange: NasdaqCM
  • Founded: 1973
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$110.463m
  • Shares outstanding: 9.48m
  • Website: https://www.oceanbiochem.com

Number of Employees


Location

  • Ocean Bio-Chem, Inc.
  • 4041 SW 47th Avenue
  • Fort Lauderdale
  • Florida
  • 33314
  • United States

Listings


Biography

Ocean Bio-Chem, Inc. manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, recreational vehicle, home care, and outdoor power eq...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 00:51
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.