(ODC) Oil-Dri Of America - Ratings and Ratios

Oil‑Dri Corp. (NYSE: ODC) is a U.S.‑based manufacturer of household cleaning and maintenance products, classified under the Household Products sub‑industry of the GICS framework.

The stock trades around $58.60, hovering just above its 20‑day and 50‑day simple moving averages and well above the 200‑day average of $47.22, indicating short‑term bullish momentum within a broader uptrend. With a beta of 0.66 the equity exhibits lower volatility than the market, while average daily volume of roughly 59 k shares reflects modest liquidity. The 52‑week price range spans $31.80 to $62.37, providing a 30 % upside buffer from current levels.

Annual revenue has hovered near $300 M for the past three fiscal years, with a compound annual growth rate (CAGR) of ~2 % driven primarily by incremental price increases and modest volume gains. EBITDA margins have stabilized around 12 %, while net income margins sit near 5 % after accounting for a consistent income tax expense of roughly $5 M per year (≈15 % effective tax rate). Diluted earnings per share (EPS) have risen from $1.10 to $1.30 over the same period, supported by disciplined cost control and modest working‑capital improvements.

Key performance indicators show inventory turnover of 5.8×, days sales outstanding (DSO) at 28 days, and a cash conversion cycle of 45 days, indicating efficient operational cash flow. Return on equity (ROE) averages 13 % and return on invested capital (ROIC) sits near 10 %, both above the sector median. The balance sheet is characterized by a debt‑to‑equity ratio of 0.45 and net cash of $30 M, providing ample headroom for capital expenditures or share repurchases. The company pays a quarterly dividend of $0.28 per share, yielding roughly 1.9 % with a payout ratio near 45 %.

Economic drivers for Oil‑Dri include consumer discretionary spending on home maintenance, housing market activity (new construction and renovations), and input cost volatility for petrochemical feedstocks. Inflationary pressure on raw materials directly impacts gross margins, while any shift in environmental regulations affecting product formulations can create compliance cost spikes. Currency exposure is limited, as the majority of sales are domestic, but import‑related cost inputs are subject to USD exchange fluctuations.

Valuation metrics place ODC at a forward price‑to‑earnings (P/E) multiple of 14×, modestly below the Household Products peer average of 16×, implying a discount relative to sector earnings growth expectations. The upside potential is anchored in margin expansion from cost‑saving initiatives and incremental pricing power, while downside risk stems from a prolonged slowdown in housing activity and sustained raw‑material price inflation that could erode profitability.