NYSE:OEC

Stock Analysis Report

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.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Risks

  • Orion Engineered Carbons has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.0%

OEC

-0.6%

US Chemicals

-0.2%

US Market


1 Year Return

-49.3%

OEC

-14.1%

US Chemicals

1.1%

US Market

OEC underperformed the Chemicals industry which returned -14.1% over the past year.

OEC underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

OECIndustryMarket
7 Day-3.0%-0.6%-0.2%
30 Day24.9%4.0%2.5%
90 Day-15.1%0.8%1.6%
1 Year-47.4%-49.3%-0.6%-14.1%3.4%1.1%
3 Year-1.6%-11.2%43.8%17.4%45.2%35.8%
5 Year17.1%-7.8%38.0%7.5%62.6%44.8%

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 based on future cash flows and its price relative to the stock market?

11.63x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Orion Engineered Carbons's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Orion Engineered Carbons's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Orion Engineered Carbons is good value based on earnings compared to the US Chemicals industry average.

Orion Engineered Carbons is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Orion Engineered Carbons is good value based on expected growth next year.


Price Based on Value of Assets

Orion Engineered Carbons is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Orion Engineered Carbons expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Orion Engineered Carbons's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Orion Engineered Carbons's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

Orion Engineered Carbons's revenue growth is positive but not above the United States of America market average.

Orion Engineered Carbons's earnings growth is positive but not above the United States of America market average.

Orion Engineered Carbons's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Orion Engineered Carbons is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

53.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Orion Engineered Carbons has delivered over 20% year on year earnings growth in the past 5 years.

Orion Engineered Carbons's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Orion Engineered Carbons's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

Whilst Orion Engineered Carbons made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Orion Engineered Carbons used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Orion Engineered Carbons's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Orion Engineered Carbons's financial position?


Financial Position Analysis

Orion Engineered Carbons is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Orion Engineered Carbons's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Orion Engineered Carbons's level of debt (417.1%) compared to net worth is high (greater than 40%).

Orion Engineered Carbons had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (22.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

5.13%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Orion Engineered Carbons's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Orion Engineered Carbons's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Orion Engineered Carbons has been paying a dividend for less than 10 years.

Orion Engineered Carbons has only been paying a dividend for 5 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Corning Painter (57yo)

0.9yrs

Tenure

0

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 ...


Management Age and Tenure

4.0yrs

Average Tenure

55yo

Average Age

The tenure for the Orion Engineered Carbons management team is about average.


Board Age and Tenure

1.0yrs

Average Tenure

66.5yo

Average Age

The average tenure for the Orion Engineered Carbons board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Charles E. Herlinger (63yo)

    Chief Financial Officer

    • Tenure: 8.2yrs
  • Corning Painter (57yo)

    CEO & Director

    • Tenure: 0.9yrs
  • Jack Clem (65yo)

    Advisor & Director

    • Tenure: 0.9yrs
  • David Deters (53yo)

    Senior Vice President of Innovation

    • Tenure: 4.1yrs
  • Erik Thiry (48yo)

    Senior Vice President of Business Line Rubber Carbon Black & Business Development

    • Tenure: 4yrs
  • Lixing Min (58yo)

    Senior VP & GM of Asia - Pacific Region

    • Tenure: 6.4yrs
  • Christian Eggert (45yo)

    Senior VP

    • Tenure: 0yrs
  • André Schulze Isfort (44yo)

    Chief Accounting Officer and Head of Consolidation & Reporting

    • Tenure: 0yrs
  • Patrick Tuttle

    Senior Vice President of Global Human Resources

    • Tenure: 0.3yrs
  • Carlos Quinones

    Senior Vice President of Global Operations

    • Tenure: 0.3yrs

Board Members

  • Dan Smith (73yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Kerry Galvin (68yo)

    Director

    • Tenure: 1.1yrs
  • Hans-Dietrich Winkhaus (82yo)

    Director

    • Tenure: 0yrs
  • Paul Huck (69yo)

    Director

    • Tenure: 0yrs
  • Marc Jean Faber (60yo)

    Director

    • Tenure: 2.3yrs
  • Corning Painter (57yo)

    CEO & Director

    • Tenure: 0.9yrs
  • Jack Clem (65yo)

    Advisor & Director

    • Tenure: 0.9yrs
  • Didier Miraton (60yo)

    Director

    • Tenure: 0yrs

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$998.921m
  • Shares outstanding: 60.21m
  • Website: https://www.orioncarbons.com

Number of Employees


Location

  • Orion Engineered Carbons S.A.
  • 6, Route de Trèves
  • Senningerberg
  • 2633
  • Luxembourg

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 Analysis2019/09/21 00:41
End of Day Share Price2019/09/20 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.