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OEC

Orion Engineered Carbons NYSE:OEC Stock Report

Last Price

US$14.41

Market Cap

US$875.4m

7D

-4.8%

1Y

-23.6%

Updated

25 Jun, 2022

Data

Company Financials +
OEC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends0/6

OEC Stock Overview

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

Orion Engineered Carbons Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Orion Engineered Carbons
Historical stock prices
Current Share PriceUS$14.41
52 Week HighUS$20.99
52 Week LowUS$13.84
Beta1.64
1 Month Change-24.91%
3 Month Change-8.28%
1 Year Change-23.64%
3 Year Change-32.70%
5 Year Change-27.77%
Change since IPO-17.66%

Recent News & Updates

Jun 22
Is Now The Time To Look At Buying Orion Engineered Carbons S.A. (NYSE:OEC)?

Is Now The Time To Look At Buying Orion Engineered Carbons S.A. (NYSE:OEC)?

Orion Engineered Carbons S.A. ( NYSE:OEC ), might not be a large cap stock, but it saw significant share price movement...

May 22
Estimating The Fair Value Of Orion Engineered Carbons S.A. (NYSE:OEC)

Estimating The Fair Value Of Orion Engineered Carbons S.A. (NYSE:OEC)

Today we will run through one way of estimating the intrinsic value of Orion Engineered Carbons S.A. ( NYSE:OEC ) by...

Shareholder Returns

OECUS ChemicalsUS Market
7D-4.8%3.6%6.6%
1Y-23.6%-8.3%-18.5%

Return vs Industry: OEC underperformed the US Chemicals industry which returned -8.3% over the past year.

Return vs Market: OEC underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is OEC's price volatile compared to industry and market?
OEC volatility
OEC Average Weekly Movement6.2%
Chemicals Industry Average Movement6.8%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: OEC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: OEC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18621,475Corning Painterhttps://www.orioncarbons.com

Orion Engineered Carbons S.A., together with its subsidiaries, manufactures and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and internationally. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for polymers, coatings, and battery electrodes.

Orion Engineered Carbons Fundamentals Summary

How do Orion Engineered Carbons's earnings and revenue compare to its market cap?
OEC fundamental statistics
Market CapUS$875.40m
Earnings (TTM)US$143.70m
Revenue (TTM)US$1.67b

6.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OEC income statement (TTM)
RevenueUS$1.67b
Cost of RevenueUS$1.27b
Gross ProfitUS$402.00m
Other ExpensesUS$258.30m
EarningsUS$143.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.37
Gross Margin24.05%
Net Profit Margin8.60%
Debt/Equity Ratio219.9%

How did OEC perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

2%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is OEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OEC?

Other financial metrics that can be useful for relative valuation.

OEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA6.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does OEC's PE Ratio compare to its peers?

OEC PE Ratio vs Peers
The above table shows the PE ratio for OEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.5x

Price-To-Earnings vs Peers: OEC is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (9.5x).


Price to Earnings Ratio vs Industry

How does OEC's PE Ratio compare vs other companies in the U.S. Chemicals Industry?

Price-To-Earnings vs Industry: OEC is good value based on its Price-To-Earnings Ratio (6.1x) compared to the US Chemicals industry average (16.1x)


Price to Earnings Ratio vs Fair Ratio

What is OEC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate OEC's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of OEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OEC ($14.41) is trading below our estimate of fair value ($18.9)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if OEC's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if OEC's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if OEC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OEC's revenue (6.4% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: OEC's revenue (6.4% 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 (29%)


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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OEC has a high level of non-cash earnings.

Growing Profit Margin: OEC's current net profit margins (8.6%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: OEC's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: OEC's earnings growth over the past year (507.1%) exceeds its 5-year average (7.8% per year).

Earnings vs Industry: OEC earnings growth over the past year (507.1%) exceeded the Chemicals industry 30.2%.


Return on Equity

High ROE: Whilst OEC's Return on Equity (38.08%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Orion Engineered Carbons's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: OEC's short term assets ($769.3M) exceed its short term liabilities ($510.8M).

Long Term Liabilities: OEC's short term assets ($769.3M) do not cover its long term liabilities ($880.4M).


Debt to Equity History and Analysis

Debt Level: OEC's net debt to equity ratio (209%) is considered high.

Reducing Debt: OEC's debt to equity ratio has reduced from 856.2% to 219.9% over the past 5 years.

Debt Coverage: OEC's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: OEC's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OEC's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: OEC's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (4.24%).


Stability and Growth of Payments

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

Growing Dividend: OEC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: OEC is paying a dividend but the company has no free cash flows.


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Management

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

3.0yrs

Average management tenure


CEO

Corning Painter (59 yo)

3.75yrs

Tenure

US$5,899,282

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Corning's total compensation ($USD5.90M) is above average for companies of similar size in the US market ($USD4.05M).

Compensation vs Earnings: Corning's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: OEC's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: OEC's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OEC 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

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


Key Information

  • Name: Orion Engineered Carbons S.A.
  • Ticker: OEC
  • Exchange: NYSE
  • Founded: 1862
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: US$875.397m
  • Shares outstanding: 60.75m
  • Website: https://www.orioncarbons.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.