Download PDF

1. Company Snapshot

1.a. Company Description

Oil-Dri Corporation of America, together with its subsidiaries, develops, manufactures, and markets sorbent products in the United States and internationally.It operates in two segments, Retail and Wholesale Products Group; and Business to Business Products Group.The company provides agricultural and horticultural products, including mineral-based absorbent products that serve as chemical carriers, drying agents, and growing media under the Agsorb, Verge, and Flo-Fre brand names.


It also offers animal health and nutrition products for the livestock industry under the Amlan, Calibrin, Varium, Neoprime, MD-09, and Pel-Unite and Pel-Unite Plus brand names; and bleaching clay and purification aid products for bleaching, purification, and filtration applications under the Pure-Flo, Perform, Select, and Ultra-Clear brand names.In addition, the company provides cat litter products, such as scoopable and non-clumping litters under the Cat's Pride and Jonny Cat brand names; industrial and automotive sorbent products from clay, polypropylene, and recycled materials that absorb oil, acid, paint, ink, water, and other liquids under the Oil-Dri brand name; and sports products for use on baseball, softball, football, and soccer fields under the Pro's Choice brand name.Its customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, and sports field product and sports turf material users; processors and refiners of edible oils, petroleum-based oils, and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products.


Oil-Dri Corporation of America was founded in 1941 and is based in Chicago, Illinois.

Show Full description

1.b. Last Insights on ODC

Oil-Dri Corporation of America's recent performance faces challenges due to tough year-over-year comparisons ahead, as warned by management. Despite delivering record FY25 sales and earnings, and strongest annual financial results in history, driven by solid fourth-quarter performance, the company confronts critical analysis with peer Olin. Additionally, while quarterly dividends of $0.18 per common share and $0.135 per Class B share were declared, investors focus on future growth amid evolving business conditions.

1.c. Company Highlights

2. Oil-Dri's Q4 Fiscal 2025: Robust Revenue Growth and Strategic Investments

Oil-Dri reported a 10% year-over-year revenue increase in the fourth quarter, driven by volume and product mix improvements, with B2B products seeing a significant 24% revenue growth. The company's net earnings per share (EPS) came in at $0.33, slightly below analyst estimates of $0.34. The revenue growth was accompanied by an increase in EBITDA, which rose 29% to $90 million for the full year, indicating a strong operational performance. The company's net cash provided by operating activities was $80 million, a 33% increase from the prior year, highlighting its ability to generate cash.

Publication Date: Nov -12

📋 Highlights
  • Revenue Growth:: 10% Q4 revenue increase YoY, with B2B products surging 24% driven by pricing and margin improvements.
  • Capital Investments:: $33M allocated to infrastructure and IT upgrades, maintaining high service levels amid growth.
  • Strong Cash Flow:: Net cash from operations rose 33% to $80M, with full-year EBITDA climbing 29% to $90M.
  • Capital Allocation:: $11M debt reduction and 16% dividend hike, reflecting disciplined financial priorities.
  • Forward Guidance:: CFO cautions "challenging" first half of FY2026 due to prior-year growth comparisons.

Capital Allocation and Investments

Oil-Dri invested $33 million in capital projects, focusing on replacing aged plant infrastructure and refreshing information technology network hardware, while maintaining high service levels. The company also prioritized its capital allocation, focusing on investing in the business for long-term sustainability, servicing debt, and returning cash to shareholders through dividends. The company paid down $11 million in debt and raised the dividend by 16% for fiscal year 2026, demonstrating its commitment to shareholder returns.

Valuation and Growth Prospects

With a P/E Ratio of 10.76 and an EV/EBITDA of 8.6, Oil-Dri's valuation appears reasonable, considering its growth prospects. The company's ROE of 21.55% and ROIC of 17.2% indicate a strong ability to generate returns on equity and invested capital. Analysts do not have an estimate for next year's revenue growth, but the company's guidance suggests that the first half of fiscal 2026 will be challenging due to strong comparisons from the prior year. As Daniel Jaffee emphasized, "earnings are an opinion, but cash is a fact," highlighting the importance of cash flow generation.

Segment Performance and Outlook

The company's B2B segment saw significant growth, driven by higher prices and margins. The agricultural sales surge in Q4 is expected to normalize in fiscal year '26, but the company remains bullish about the segment's future growth. The Ultra Pet business has been a great fit, exceeding estimates of distribution adds and synergies, which has helped offset softness in legacy customers. The company's focus on innovation, including the use of artificial intelligence in R&D, is expected to drive future growth.

3. NewsRoom

Card image cap

Oil-Dri® Corporation of America Recognized by Forbes in 2026 List of America's Most Successful Small-Cap Companies

Dec -03

Source: globenewswire.com

Card image cap

Amlan International Names Dr. Edwin Chow as Technical Service Director to Drive Innovation Across APAC

Dec -01

Source: globenewswire.com

Card image cap

Y Intercept Hong Kong Ltd Acquires Shares of 10,594 Oil-Dri Corporation Of America $ODC

Nov -06

Source: defenseworld.net

Card image cap

Oil-Dri to Host First Quarter 2026 Earnings Discussion and Fiscal Year 2025 Annual Meeting of Stockholders via Live Webcast

Oct -28

Source: globenewswire.com

Card image cap

Critical Analysis: Olin (NYSE:OLN) versus Oil-Dri Corporation Of America (NYSE:ODC)

Oct -24

Source: defenseworld.net

Card image cap

Oil-Dri Posts Record FY25 Results, To Face Tough Comparisons Ahead

Oct -13

Source: zacks.com

Card image cap

Oil-Dri Corporation of America (ODC) Q4 2025 Earnings Call Transcript

Oct -10

Source: seekingalpha.com

Card image cap

Oil-Dri Delivers Strongest Annual Financial Results in History, Bolstered by Solid Fourth Quarter Performance

Oct -09

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Retail and Wholesale

Expected Growth: 4.5%

Growing pet ownership, increasing demand for natural and eco-friendly products, and expanding industrial applications drive the Retail and Wholesale segment's growth.

Business to Business

Expected Growth: 4.5%

Growing demand for absorbent products in automotive, industrial, and agricultural markets, driven by increasing focus on environmental sustainability and regulations, is expected to drive the growth of Oil-Dri Corporation of America's B2B segment.

7. Detailed Products

Cat Litter

Oil-Dri Corporation of America offers a range of cat litter products that are designed to provide odor control, moisture absorption, and ease of cleaning. Their cat litter products are made from natural minerals and are 99.9% dust-free.

Animal Bedding

Oil-Dri's animal bedding products are designed to provide a clean and comfortable living environment for animals. They are made from natural materials and are highly absorbent, making them ideal for use in animal shelters, farms, and veterinary clinics.

Horticultural Products

Oil-Dri's horticultural products are designed to improve soil structure, increase water retention, and reduce soil compaction. They are made from natural minerals and are suitable for use in gardens, greenhouses, and agricultural applications.

Spill Absorbents

Oil-Dri's spill absorbent products are designed to quickly and effectively absorb spills and messes. They are made from natural minerals and are suitable for use in industrial, commercial, and residential settings.

Fluid Purification

Oil-Dri's fluid purification products are designed to remove impurities and contaminants from fluids. They are made from natural minerals and are suitable for use in a variety of industrial and commercial applications.

8. Oil-Dri Corporation of America's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Oil-Dri Corporation of America is medium due to the availability of alternative products in the market, but the company's strong brand presence and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for Oil-Dri Corporation of America as the company operates in a niche market with a strong brand presence, making it difficult for customers to negotiate prices or demand better services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Oil-Dri Corporation of America as the company relies on a few key suppliers for its raw materials, but it also has some bargaining power due to its large scale of operations.

Threat Of New Entrants

The threat of new entrants is low for Oil-Dri Corporation of America due to the high barriers to entry in the market, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high in the market where Oil-Dri Corporation of America operates, with several established players competing for market share, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.36%
Debt Cost 4.05%
Equity Weight 80.64%
Equity Cost 7.28%
WACC 6.66%
Leverage 24.01%

11. Quality Control: Oil-Dri Corporation of America passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oil-Dri

A-Score: 7.0/10

Value: 5.8

Growth: 9.0

Quality: 7.0

Yield: 4.0

Momentum: 10.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Hudson Technologies

A-Score: 5.3/10

Value: 5.3

Growth: 7.6

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Core Molding Technologies

A-Score: 5.2/10

Value: 7.2

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Hawkins

A-Score: 5.2/10

Value: 1.6

Growth: 7.9

Quality: 5.6

Yield: 1.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Kronos Worldwide

A-Score: 5.0/10

Value: 9.1

Growth: 2.7

Quality: 5.0

Yield: 9.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
NTIC

A-Score: 4.3/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 3.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

53.59$

Current Price

53.59$

Potential

-0.00%

Expected Cash-Flows