NYSE:OMN

Stock Analysis Report

Executive Summary

OMNOVA Solutions Inc. provides specialty solutions and performance materials for various commercial, industrial, and residential end uses in the United States, Europe, and Asia.

Snowflake

Fundamentals

Reasonable growth potential with poor track record.

Risks

  • OMNOVA Solutions has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has OMNOVA Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OMN

-0.8%

US Chemicals

-0.6%

US Market


1 Year Return

-1.7%

OMN

-14.3%

US Chemicals

0.7%

US Market

OMN outperformed the Chemicals industry which returned -14.3% over the past year.

OMN underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

OMNIndustryMarket
7 Day0%-0.8%-0.6%
30 Day0.2%5.9%2.9%
90 Day79.7%0.2%1.3%
1 Year-1.7%-1.7%-0.9%-14.3%2.9%0.7%
3 Year23.1%23.1%43.4%17.1%44.6%35.2%
5 Year76.5%76.5%37.6%7.2%61.9%44.2%

Price Volatility Vs. Market

How volatile is OMNOVA Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 months ago | Simply Wall St

Is There More To OMNOVA Solutions Inc. (NYSE:OMN) Than Its 11% Returns On Capital?

Valuation

Is OMNOVA Solutions undervalued based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

OMNOVA Solutions's share price is below the future cash flow value, but not at a moderate discount (< 20%).

OMNOVA Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

OMNOVA Solutions is overvalued based on earnings compared to the US Chemicals industry average.

OMNOVA Solutions is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

OMNOVA Solutions is poor value based on expected growth next year.


Price Based on Value of Assets

OMNOVA Solutions is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is OMNOVA Solutions expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

46.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

OMNOVA Solutions's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

OMNOVA Solutions's earnings are expected to grow significantly at over 20% yearly.

OMNOVA Solutions's revenue growth is positive but not above the United States of America market average.

OMNOVA Solutions's earnings growth is expected to exceed the United States of America market average.

OMNOVA Solutions's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

OMNOVA Solutions is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has OMNOVA Solutions performed over the past 5 years?

-41.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

OMNOVA Solutions's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

OMNOVA Solutions has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

OMNOVA Solutions has become profitable in the last year making it difficult to compare the US Chemicals industry average.


Return on Equity

OMNOVA Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

OMNOVA Solutions used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

OMNOVA Solutions has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is OMNOVA Solutions's financial position?


Financial Position Analysis

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

OMNOVA Solutions's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

OMNOVA Solutions's level of debt (517.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (240.1% vs 517.8% today).

Debt is not well covered by operating cash flow (11.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x 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 OMNOVA Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate OMNOVA Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate OMNOVA Solutions's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as OMNOVA Solutions has not reported any payouts.

Unable to verify if OMNOVA Solutions's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as OMNOVA Solutions has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of OMNOVA Solutions's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Anne Noonan (56yo)

2.8yrs

Tenure

US$2,298,778

Compensation

Ms. Anne P. Noonan has been Chief Executive Officer, President and Director of OMNOVA Solutions Inc. since December 1, 2016. Ms. Noonan served as the President of Performance Chemicals Business Segment at  ...


CEO Compensation Analysis

Anne's remuneration is about average for companies of similar size in United States of America.

Anne's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

55.5yo

Average Age

The tenure for the OMNOVA Solutions management team is about average.


Board Age and Tenure

4.5yrs

Average Tenure

68yo

Average Age

The tenure for the OMNOVA Solutions board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$029 Aug 19
Gabelli & Company Investment Advisers, Inc.
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Max PriceUS$10.05
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GAMCO Investors, Inc.
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SellUS$029 Aug 19
GAMCO Investors, Inc.
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SellUS$2,697,19429 Aug 19
Teton Advisors, Inc
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BuyUS$2,299,10331 Jul 19
Gabelli & Company Investment Advisers, Inc.
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Shares230,900
Max PriceUS$9.96
BuyUS$3,271,41031 Jul 19
GAMCO Investors, Inc.
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Shares328,478
Max PriceUS$9.97
BuyUS$6,223,51026 Jul 19
GAMCO Investors, Inc.
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Shares623,766
Max PriceUS$10.02
BuyUS$2,030,83226 Jul 19
Gabelli & Company Investment Advisers, Inc.
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Shares203,800
Max PriceUS$9.97
SellUS$483,86726 Jul 19
GAMCO Investors, Inc.
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Shares48,370
Max PriceUS$10.02
BuyUS$1,211,25812 Jul 19
Gabelli & Company Investment Advisers, Inc.
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Shares122,200
Max PriceUS$9.91
SellUS$1,359,80912 Jul 19
GAMCO Investors, Inc.
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Shares136,697
Max PriceUS$10.01
BuyUS$5,359,81012 Jul 19
GAMCO Investors, Inc.
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Shares540,164
Max PriceUS$10.03
SellUS$646,58412 Jul 19
Teton Advisors, Inc
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Shares65,000
Max PriceUS$9.98
BuyUS$118,95712 Jul 19
Teton Advisors, Inc
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Shares17,000
Max PriceUS$7.04

Ownership Breakdown


Management Team

  • James LeMay (62yo)

    Senior VP of Corporate Development & General Counsel

    • Tenure: 19.9yrs
    • Compensation: US$775.71k
  • Marshall Moore (55yo)

    CTO & Senior VP of Operations

    • Tenure: 1.7yrs
    • Compensation: US$634.22k
  • Paul DeSantis (54yo)

    CFO, Senior VP & Treasurer

    • Tenure: 5.2yrs
    • Compensation: US$925.40k
  • Anne Noonan (56yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.30m
  • Charles Chrisman

    Global Vice President of Sales & Commercial Excellence for Performance Chemicals Unit

    • Tenure: 4.3yrs
  • Chet Fox

    Vice President of Investor Relations

    • Tenure: 5.7yrs
  • Mickey McMillan (59yo)

    VP & Chief Accounting Officer

    • Tenure: 2.8yrs
  • Michael Quinn (55yo)

    Chief Human Resources Officer & Senior VP

    • Tenure: 5.9yrs
    • Compensation: US$600.34k
  • Frank Esposito

    Corporate Secretary & Investor Relations and Assistant General Counsel

    • Tenure: 4.6yrs

Board Members

  • Allan Rothwell (71yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$166.54k
  • David D'Antoni (74yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$166.54k
  • Bill Seelbach (71yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: US$236.54k
  • Joe Gingo (74yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$166.54k
  • Mike Merriman (63yo)

    Presiding Director

    • Tenure: 0yrs
    • Compensation: US$176.54k
  • James Mitarotonda (65yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$166.54k
  • Steve Percy (72yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$184.04k
  • Larry Porcellato (61yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$176.54k
  • Anne Noonan (56yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.30m
  • Janet Giesselman (64yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$179.04k

Company Information

OMNOVA Solutions Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OMNOVA Solutions Inc.
  • Ticker: OMN
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$452.123m
  • Shares outstanding: 44.85m
  • Website: https://www.omnova.com

Number of Employees


Location

  • OMNOVA Solutions Inc.
  • 25435 Harvard Road
  • Beachwood
  • Ohio
  • 44122
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OMNNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1999
OMODB (Deutsche Boerse AG)YesCommon StockDEEURSep 1999

Biography

OMNOVA Solutions Inc. provides specialty solutions and performance materials for various commercial, industrial, and residential end uses in the United States, Europe, and Asia. Its Specialty Solutions seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:37
End of Day Share Price2019/09/20 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.