NasdaqCM:OBCI

Stock Analysis Report

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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.


Snowflake Analysis

Excellent balance sheet with proven track record.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.4%

OBCI

2.1%

US Household Products

1.7%

US Market


1 Year Return

316.7%

OBCI

10.6%

US Household Products

6.0%

US Market

Return vs Industry: OBCI exceeded the US Household Products industry which returned 8.9% over the past year.

Return vs Market: OBCI exceeded the US Market which returned 7.4% over the past year.


Shareholder returns

OBCIIndustryMarket
7 Day11.4%2.1%1.7%
30 Day166.5%4.2%-0.5%
90 Day205.2%8.5%17.8%
1 Year319.8%316.7%13.3%10.6%8.2%6.0%
3 Year267.3%253.6%53.6%41.0%36.3%27.4%
5 Year368.3%333.9%77.5%53.2%63.0%45.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OBCI ($14.71) is trading below our estimate of fair value ($34.52)

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


Price To Earnings Ratio

PE vs Industry: OBCI is poor value based on its PE Ratio (40.6x) compared to the Household Products industry average (30.3x).

PE vs Market: OBCI is poor value based on its PE Ratio (40.6x) compared to the US market (16.5x).


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 (4.4x) compared to the US Household Products industry average (6x).


Next Steps

Future Growth

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

11.7%

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.


Next Steps

Past Performance

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

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OBCI has high quality earnings.

Growing Profit Margin: OBCI's current net profit margins (8.3%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: OBCI's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: OBCI's earnings growth over the past year (14.2%) is below its 5-year average (23.1% per year).

Earnings vs Industry: OBCI earnings growth over the past year (14.2%) exceeded the Household Products industry 14.2%.


Return on Equity

High ROE: OBCI's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Ocean Bio-Chem's financial position?


Financial Position Analysis

Short Term Liabilities: OBCI's short term assets ($28.0M) exceed its short term liabilities ($3.8M).

Long Term Liabilities: OBCI's short term assets ($28.0M) exceed its long term liabilities ($4.6M).


Debt to Equity History and Analysis

Debt Level: OBCI's debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: OBCI's debt to equity ratio has increased from 4.8% to 14.3% over the past 5 years.

Debt Coverage: OBCI's debt is well covered by operating cash flow (153.6%).

Interest Coverage: OBCI's interest payments on its debt are well covered by EBIT (41.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OBCI's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: OBCI's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (4.49%).


Stability and Growth of Payments

Stable Dividend: OBCI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: OBCI is not paying a notable dividend for the US market, therefore no need to check if payments are 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 OBCI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

15.9yrs

Average management tenure


CEO

Peter Dornau (80yo)

47.5yrs

Tenure

US$294,307

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 ($USD294.31K) is below average for companies of similar size in the US market ($USD606.95K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Dornau
Co-Founder47.5yrsUS$294.31k50.67% $70.5m
Jeffrey Barocas
CFO, VP of Finance & Director12.92yrsUS$263.26k1.89% $2.6m
William Dudman
COO, VP12.92yrsUS$260.84k2.77% $3.9m
Gregor Dornau
Executive VP of Sales & Marketing & Director12.92yrsUS$275.54k4.89% $6.8m
Anca Vague
Controller of Financial Reportingno datano datano data

15.9yrs

Average Tenure

63.5yo

Average Age

Experienced Management: OBCI's management team is seasoned and experienced (15.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Dornau
Co-Founder47.5yrsUS$294.31k50.67% $70.5m
Jeffrey Barocas
CFO, VP of Finance & Director12.92yrsUS$263.26k1.89% $2.6m
William Dudman
COO, VP12.92yrsUS$260.84k2.77% $3.9m
Gregor Dornau
Executive VP of Sales & Marketing & Director12.92yrsUS$275.54k4.89% $6.8m
James Kolisch
Director22.17yrsUS$4.72k0.75% $1.0m
John Turner
Independent Director20.08yrsUS$6.32k0.87% $1.2m
Diana Conard
Independent Director9.25yrsUS$6.32k0.053% $73.2k
Kimberly Krause
Independent Director4yrsUS$6.32k0.042% $58.8k

12.9yrs

Average Tenure

62yo

Average Age

Experienced Board: OBCI's board of directors are seasoned and experienced ( 12.9 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

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$139.129m
  • Shares outstanding: 9.46m
  • Website: https://www.oceanbiochem.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OBCINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 1981
OBCDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1981

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 equipment markets in the United States and Canada. The company offers marine products, including polishes, cleaners, protectants, waxes, enzyme fuel treatments, private label products, motor and teak oils, boat washes, vinyl and teak cleaners, bilge and hull cleaners, silicone and polyurethane sealants, polysulfide sealants, gasket materials, lubricants, antifouling additives, and anti-freeze coolants; and brushes, brush handles, tie-downs, and other related accessories. It also manufactures automotive products, such as fuel treatments for gas and diesel engines, motor oils, greases, and related items; anti-freeze and windshield washes; and automotive polishes, cleaners, and other items. In addition, the company offers fuel treatment and other specialty products to the recreational vehicle market; solutions to various problems associated with E-10 fuel; and other specialty recreational vehicle/power sports products, including cleaners, polishes, detergents, fabric cleaners and protectors, silicone sealants, waterproofers, gasket materials, degreasers, vinyl cleaners and protectors, toilet treatment fluids, and anti-freeze/coolants. Further, it provides solutions to rectify operating engine problems in commercial lawn, and other home and garden power equipment; deodorizers, disinfectants, and sanitizers, as well as mildew odor control bags and boat odor sanitizers; blends and packages chemical formulations; and manufactures PVC and HDPE blow molded bottles. The company sells its products under the Star Tron, Performacide, and Star brite brands through retailers and online retailers, as well as to distributors. Ocean Bio-Chem, Inc. was founded in 1973 and is headquartered in Fort Lauderdale, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 00:06
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.