(OEC) Orion Engineered Carbons - Overview
Sector: Basic Materials | Industry: Specialty Chemicals | Exchange: NYSE (USA) | Market Cap: 378m USD | Total Return: -34.8% in 12m
Avg Turnover: 3.22M
EPS Trend: -78.8%
Qual. Beats: -2
Rev. Trend: -91.0%
Qual. Beats: 3
Warnings
High Debt/EBITDA (8.0) with thin interest coverage (0.1)
Interest Coverage Ratio 0.1 is critical
Altman Z'' 0.91 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Orion S.A. (NYSE: OEC) is a global manufacturer of carbon black, operating through its Specialty Carbon Black and Rubber Carbon Black segments. The company produces high-purity and conductive grades for coatings, printing, batteries, and polymers, alongside reinforced grades for the tire and mechanical rubber industries under the ECORAX brand. Headquartered in Luxembourg, Orion maintains a diversified manufacturing footprint across the Americas, EMEA, and Asia.
The carbon black industry is essential to the global automotive supply chain, as the material acts as a critical reinforcing agent that enhances the durability and rolling resistance of tires. In the specialty segment, carbon black serves as a functional additive for UV protection and electrical conductivity in high-performance plastics and lithium-ion batteries.
For a detailed analysis of the companys valuation and historical performance, investors may find it useful to review further data on ValueRay. Orion S.A. was founded in 1862 and underwent a corporate name change from Orion Engineered Carbons S.A. in June 2023.
- Electric vehicle battery demand drives growth in high-margin conductive specialty carbon black
- Global rubber tire demand dictates volume trends for the core industrial segment
- Fluctuating feedstock costs and energy prices impact trailing twelve month operating margins
- Environmental regulatory compliance costs in US and Europe constrain free cash flow
- Recovery in automotive manufacturing production levels influences rubber carbon black sales volumes
| Net Income: -89.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 6.93 > 1.0 |
| NWC/Revenue: 0.10% < 20% (prev 4.68%; Δ -4.58% < -1%) |
| CFO/TA 0.10 > 3% & CFO 200.3m > Net Income -89.1m |
| Net Debt (1.09b) to EBITDA (136.9m): 7.99 < 3 |
| Current Ratio: 1.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (56.4m) vs 12m ago -1.44% < -2% |
| Gross Margin: 19.06% > 18% (prev 0.22%; Δ 1.88k% > 0.5%) |
| Asset Turnover: 91.74% > 50% (prev 94.11%; Δ -2.37% > 0%) |
| Interest Coverage Ratio: 0.06 > 6 (EBITDA TTM 136.9m / Interest Expense TTM 64.2m) |
| A: 0.00 (Total Current Assets 661.5m - Total Current Liabilities 659.7m) / Total Assets 1.93b |
| B: 0.19 (Retained Earnings 371.1m / Total Assets 1.93b) |
| C: 0.00 (EBIT TTM 3.80m / Avg Total Assets 1.95b) |
| D: 0.25 (Book Value of Equity 389.3m / Total Liabilities 1.55b) |
| Altman-Z'' = 0.91 = BB |
| DSRI: 1.04 (Receivables 287.8m/286.6m, Revenue 1.79b/1.85b) |
| GMI: 1.15 (GM 19.06% / 21.85%) |
| AQI: 0.47 (AQ_t 0.04 / AQ_t-1 0.09) |
| SGI: 0.97 (Revenue 1.79b / 1.85b) |
| TATA: -0.15 (NI -89.1m - CFO 200.3m) / TA 1.93b) |
| Beneish M = -3.36 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 6.76 with a total of 344,547 shares traded.
Over the past week, the price has changed by +1.45%,
over one month by -1.68%,
over three months by +27.06% and
over the past year by -34.82%.
Orion Engineered Carbons has received a consensus analysts rating of 4.25. Therefore, it is recommended to buy OEC.
- StrongBuy: 2
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.6 | -3% |
P/S = 0.2056
P/B = 0.9688
P/EG = 1.25
Revenue TTM = 1.79b USD
EBIT TTM = 3.80m USD
EBITDA TTM = 136.9m USD
Long Term Debt = 662.5m USD (from longTermDebt, last quarter)
Short Term Debt = 351.2m USD (from shortTermDebt, last quarter)
Debt = 1.15b USD (from shortLongTermDebtTotal, last quarter) + Leases 132.5m
Net Debt = 1.09b USD (calculated: Debt 1.15b - CCE 52.0m)
Enterprise Value = 1.47b USD (378.4m + Debt 1.15b - CCE 52.0m)
Interest Coverage Ratio = 0.06 (Ebit TTM 3.80m / Interest Expense TTM 64.2m)
EV/FCF = 53.80x (Enterprise Value 1.47b / FCF TTM 27.4m)
FCF Yield = 1.86% (FCF TTM 27.4m / Enterprise Value 1.47b)
FCF Margin = 1.53% (FCF TTM 27.4m / Revenue TTM 1.79b)
Net Margin = -4.98% (Net Income TTM -89.1m / Revenue TTM 1.79b)
Gross Margin = 19.06% ((Revenue TTM 1.79b - Cost of Revenue TTM 1.45b) / Revenue TTM)
Gross Margin QoQ = 17.24% (prev 18.87%)
Tobins Q-Ratio = 0.76 (Enterprise Value 1.47b / Total Assets 1.93b)
Interest Expense / Debt = 5.60% (Interest Expense 64.2m / Debt 1.15b)
Taxrate = 21.0% (US default 21%)
NOPAT = 3.00m (EBIT 3.80m * (1 - 21.00%))
Current Ratio = 1.00 (Total Current Assets 661.5m / Total Current Liabilities 659.7m)
Debt / Equity = 3.02 (Debt 1.15b / totalStockholderEquity, last quarter 379.5m)
Debt / EBITDA = 7.99 (Net Debt 1.09b / EBITDA 136.9m)
Debt / FCF = 39.98 (Net Debt 1.09b / FCF TTM 27.4m)
Total Stockholder Equity = 408.1m (last 4 quarters mean from totalStockholderEquity)
RoA = -4.57% (Net Income -89.1m / Total Assets 1.93b)
RoE = -21.83% (Net Income TTM -89.1m / Total Stockholder Equity 408.1m)
RoCE = 0.35% (EBIT 3.80m / Capital Employed (Equity 408.1m + L.T.Debt 662.5m))
RoIC = 0.19% (NOPAT 3.00m / Invested Capital 1.62b)
WACC = 6.05% (E(378.4m)/V(1.52b) * Re(10.99%) + D(1.15b)/V(1.52b) * Rd(5.60%) * (1-Tc(0.21)))
Discount Rate = 10.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -77.78 | Cagr: -2.15%
[DCF] Terminal Value 75.44% ; FCFF base≈27.4m ; Y1≈27.5m ; Y5≈29.1m
[DCF] Fair Price = N/A (negative equity: EV 452.8m - Net Debt 1.09b = -641.4m; debt exceeds intrinsic value)
EPS Correlation: -78.83 | EPS CAGR: -47.71% | SUE: -1.57 | # QB: -2
Revenue Correlation: -90.97 | Revenue CAGR: -2.67% | SUE: 0.94 | # QB: 3
EPS current Quarter (2026-06-30): EPS=0.14 | Chg30d=+23.85% | Revisions=-14% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.12 | Chg30d=+91.06% | Revisions=+14% | Analysts=3
EPS current Year (2026-12-31): EPS=0.16 | Chg30d=-28.34% | Revisions=+14% | GrowthEPS=-67.5% | GrowthRev=-1.2%
EPS next Year (2027-12-31): EPS=0.36 | Chg30d=-16.93% | Revisions=+0% | GrowthEPS=+123.7% | GrowthRev=+0.3%
[Analyst] Revisions Ratio: -14%