NYSE:OEC

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Orion Engineered Carbons

Executive Summary

Orion Engineered Carbons S.A., together with its subsidiaries, produces and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Orion Engineered Carbons's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OEC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: OEC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-2.1%

OEC

-1.5%

US Chemicals

2.6%

US Market


1 Year Return

0.4%

OEC

25.1%

US Chemicals

26.0%

US Market

Return vs Industry: OEC underperformed the US Chemicals industry which returned 25.1% over the past year.

Return vs Market: OEC underperformed the US Market which returned 26% over the past year.


Shareholder returns

OECIndustryMarket
7 Day-2.1%-1.5%2.6%
30 Day0%3.5%5.1%
90 Day10.1%19.1%17.1%
1 Year1.8%0.4%28.0%25.1%28.9%26.0%
3 Year-39.2%-44.0%24.2%0.9%46.3%36.6%
5 Year61.7%37.2%113.9%65.4%126.9%101.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Orion Engineered Carbons undervalued compared to its fair value and its price relative to the market?

35.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OEC ($16.52) is trading above our estimate of fair value ($2.64)

Significantly Below Fair Value: OEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OEC is poor value based on its PE Ratio (35.3x) compared to the US Chemicals industry average (32.2x).

PE vs Market: OEC is poor value based on its PE Ratio (35.3x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: OEC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: OEC is overvalued based on its PB Ratio (6.4x) compared to the US Chemicals industry average (2.6x).


Next Steps

Future Growth

How is Orion Engineered Carbons forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

56.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OEC's forecast earnings growth (56.1% per year) is above the savings rate (2%).

Earnings vs Market: OEC's earnings (56.1% per year) are forecast to grow faster than the US market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OEC's revenue (7.8% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: OEC's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OEC's Return on Equity is forecast to be high in 3 years time (36.6%)


Next Steps

Past Performance

How has Orion Engineered Carbons performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OEC has high quality earnings.

Growing Profit Margin: OEC's current net profit margins (2.5%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: OEC's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: OEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OEC had negative earnings growth (-66.3%) over the past year, making it difficult to compare to the Chemicals industry average (-16.3%).


Return on Equity

High ROE: OEC's Return on Equity (18%) is considered low.


Next Steps

Financial Health

How is Orion Engineered Carbons's financial position?


Financial Position Analysis

Short Term Liabilities: OEC's short term assets ($490.6M) exceed its short term liabilities ($328.4M).

Long Term Liabilities: OEC's short term assets ($490.6M) do not cover its long term liabilities ($862.2M).


Debt to Equity History and Analysis

Debt Level: OEC's debt to equity ratio (485.8%) is considered high.

Reducing Debt: OEC's debt to equity ratio has reduced from 1331.9% to 485.8% over the past 5 years.

Debt Coverage: OEC's debt is well covered by operating cash flow (23.7%).

Interest Coverage: OEC's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Orion Engineered Carbons's current dividend yield, its reliability and sustainability?

0.88%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: OEC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OEC'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?

1.6yrs

Average management tenure


CEO

Corning Painter (58 yo)

2.33yrs

Tenure

US$3,753,963

Compensation

Mr. Corning F. Painter has been Chief Executive Officer and Director of Orion Engineered Carbons, S.A. since October 16, 2018. He served as an Executive Vice President of Industrial Gases at Air Products a...


CEO Compensation Analysis

Compensation vs Market: Corning's total compensation ($USD3.75M) is above average for companies of similar size in the US market ($USD2.37M).

Compensation vs Earnings: Insufficient data to compare Corning's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Corning Painter
CEO & Director2.33yrsUS$3.75m0.69%
$ 7.0m
Lorin Crenshaw
Chief Financial Officer1.17yrsUS$456.04k0.054%
$ 548.7k
Pedro Riveros
Senior Vice President of Global Rubber Carbon Black & Americas Region1.58yrsUS$923.97k0.035%
$ 351.2k
Sandra Niewiem
Senior Vice President of Global Specialty Carbon Black & EMEA Region1.33yrsUS$410.28k0.015%
$ 150.6k
Carlos Quinones
Senior Vice President of Global Operations1.58yrsno data0.069%
$ 699.4k
Robert Hrivnak
Chief Accounting Officer0.42yrno datano data
Michael Reers
Chief Administration Officer1.33yrsno data0.043%
$ 434.4k
Wendy Wilson
Head of Investor Relations & Corporate Communications0.67yrno datano data
Christian Eggert
Senior VPno datano data0.086%
$ 871.6k
Patrick Tuttle
Senior Vice President of Global Human Resources1.58yrsno data0.067%
$ 671.7k
Lixing Min
Senior VP & GM of Asia - Pacific Region7.75yrsno data0.17%
$ 1.7m
David Deters
Senior Vice President of Innovation5.42yrsno data0.072%
$ 726.4k

1.6yrs

Average Tenure

51yo

Average Age

Experienced Management: OEC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Corning Painter
CEO & Director2.33yrsUS$3.75m0.69%
$ 7.0m
Dan Smith
Independent Chairman of the Board6.5yrsUS$311.93k0.039%
$ 389.4k
Kerry Galvin
Independent Director2.42yrsUS$203.17k0.022%
$ 219.8k
Hans-Dietrich Winkhaus
Independent Director6.5yrsUS$203.17k0.015%
$ 147.3k
Yi Paik
Independent Director0.58yrno datano data
Paul Huck
Independent Director6.5yrsUS$279.30k0.039%
$ 389.4k
Didier Miraton
Independent Director6.5yrsUS$203.17k0.014%
$ 138.9k
Michel Wurth
Independent Director0.58yrno datano data
Mary Lindsey
Independent Director0.58yrno datano data

2.4yrs

Average Tenure

65yo

Average Age

Experienced Board: OEC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: OEC insiders have bought and sold the same number of shares 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

Orion Engineered Carbons S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orion Engineered Carbons S.A.
  • Ticker: OEC
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$1.010b
  • Shares outstanding: 60.49m
  • Website: https://www.orioncarbons.com

Number of Employees


Location

  • Orion Engineered Carbons S.A.
  • 4501 Magnolia Cove Drive
  • Suite 106
  • Houston
  • Texas
  • 77345
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OECNYSE (New York Stock Exchange)YesOrdinary Registered SharesUSUSDJul 2014
0OEDB (Deutsche Boerse AG)YesOrdinary Registered SharesDEEURJul 2014

Biography

Orion Engineered Carbons S.A., together with its subsidiaries, produces and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and inte...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 23:05
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
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.