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 and overvalued.


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

0.2%

OMN

2.0%

US Chemicals

1.0%

US Market


1 Year Return

14.1%

OMN

-5.9%

US Chemicals

6.7%

US Market

Return vs Industry: OMN exceeded the US Chemicals industry which returned -5.9% over the past year.

Return vs Market: OMN exceeded the US Market which returned 6.7% over the past year.


Share holder returns

OMNIndustryMarket
7 Day0.2%2.0%1.0%
30 Day0.2%-2.8%-1.8%
90 Day1.1%-2.6%-1.8%
1 Year14.1%14.1%8.1%-5.9%9.1%6.7%
3 Year25.5%25.5%43.4%17.3%46.1%36.6%
5 Year70.9%70.9%46.1%14.8%66.9%48.6%

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

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

Undervalued: OMN ($10.1) is trading below our estimate of fair value ($11.84)

Significantly Undervalued: OMN is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: OMN is poor value based on its PE Ratio (54.5x) compared to the Chemicals industry average (19.4x).

PE vs Market: OMN is poor value based on its PE Ratio (54.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: OMN is poor value based on its PEG Ratio (1.3x)


Price Based on Value of Assets

PB vs Industry: OMN is overvalued based on its PB Ratio (7.7x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

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

41.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: OMN's forecast earnings growth (41.9% per year) is above the savings rate (2.7%).

Earnings vs Market: OMN's earnings (41.9% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: OMN's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: OMN's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: OMN's Return on Equity is forecast to be high in 3 years time (27.7%)


Next Steps

Past Performance

How has OMNOVA Solutions performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OMN's earnings have declined by -28.7% per year over the past 5 years.

Accelerating Growth: OMN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OMN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-2%).


Return on Equity

High ROE: OMN's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: OMN's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: OMN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is OMNOVA Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: OMN's short term assets ($237.4M) exceeds its short term liabilities ($119.7M)

Long Term Liabilities: OMN's short term assets (237.4M) do not cover its long term liabilities (391.8M)


Debt to Equity History and Analysis

Debt Level: OMN's debt to equity ratio (531.5%) is considered high

Reducing Debt: OMN's debt to equity ratio has increased from 242.6% to 531.5% over the past 5 years.

Debt Coverage: OMN's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: OMN's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: OMN has a high level of physical assets or inventory.

Debt Coverage by Assets: OMN's 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 vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

Growing Dividend: Insufficient data to determine if OMN's dividend payments have been 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 OMN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.7yrs

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

Compensation vs. Market: Anne's total compensation ($USD2.30M) is about average for companies of similar size in the US market ($USD1.85M).

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


Management Age and Tenure

4.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: OMN's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

68yo

Average Age

Experienced Board: OMN's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$029 Aug 19
Gabelli & Company Investment Advisers, Inc.
EntityCompany
Shares262,047
Max PriceUS$10.05
BuyUS$029 Aug 19
GAMCO Investors, Inc.
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Shares996,969
Max PriceUS$10.07
SellUS$029 Aug 19
GAMCO Investors, Inc.
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Shares539,356
Max PriceUS$10.07
SellUS$2,697,19429 Aug 19
Teton Advisors, Inc
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Shares270,000
Max PriceUS$10.00
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.
EntityCompany
Shares203,800
Max PriceUS$9.97
SellUS$483,86726 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares48,370
Max PriceUS$10.02
BuyUS$1,211,25812 Jul 19
Gabelli & Company Investment Advisers, Inc.
EntityCompany
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
EntityCompany
Shares65,000
Max PriceUS$9.98
BuyUS$118,95712 Jul 19
Teton Advisors, Inc
EntityCompany
Shares17,000
Max PriceUS$7.04

Ownership Breakdown


Management Team

  • James LeMay (62yo)

    Senior VP of Corporate Development & General Counsel

    • Tenure: 20yrs
    • Compensation: US$775.71k
  • Marshall Moore (55yo)

    CTO & Senior VP of Operations

    • Tenure: 1.8yrs
    • Compensation: US$634.22k
  • Paul DeSantis (54yo)

    CFO, Senior VP & Treasurer

    • Tenure: 5.3yrs
    • 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: 5.8yrs
  • Mickey McMillan (59yo)

    VP & Chief Accounting Officer

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

    Chief Human Resources Officer & Senior VP

    • Tenure: 6yrs
    • Compensation: US$600.34k
  • Frank Esposito

    Corporate Secretary & Investor Relations and Assistant General Counsel

    • Tenure: 4.7yrs

Board Members

  • Allan Rothwell (71yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$166.54k
  • David D'Antoni (74yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$166.54k
  • Bill Seelbach (71yo)

    Non-Executive Chairman

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

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$166.54k
  • Mike Merriman (63yo)

    Presiding Director

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

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$166.54k
  • Steve Percy (72yo)

    Independent Director

    • Tenure: 20yrs
    • Compensation: US$184.04k
  • Larry Porcellato (61yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$176.54k
  • Anne Noonan (56yo)

    CEO, President & Director

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

    Independent Director

    • Tenure: 4.6yrs
    • 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$453.020m
  • 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 Analysis2019/10/14 01:29
End of Day Share Price2019/10/11 00:00
Earnings2019/08/31
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.

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