Oil-Dri Corporation of America (ODC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Oil-Dri Corporation of America (ODC) Materials & Commodity Exposure

Oil-Dri Corporation of America is a specialty sorbent products manufacturer, providing solutions for retail, wholesale, and business-to-business applications. With a focus on mineral-based absorbents, the company serves diverse markets, including animal health, agriculture, and industrial cleanup, maintaining a presence in both domestic and international markets.

What Is the Investment Thesis for ODC?

Oil-Dri Corporation of America presents a compelling investment case based on its established market position and diverse product portfolio. With a market capitalization of $1.35B and a P/E ratio of 19.4, the company demonstrates financial stability. The company's gross margin of 28.3% and profit margin of 10.8% reflect efficient operations. Growth catalysts include expansion in the animal health and nutrition sector and increased demand for industrial sorbent products. Potential risks include fluctuations in raw material costs and increased competition. The company's dividend yield of 1.00% provides a steady return for investors.

Based on FMP financials and quantitative analysis

ODC Key Highlights

• Market capitalization of $1.35B indicates a strong market valuation.
• P/E ratio of 19.4 suggests a reasonable valuation compared to earnings.
• Profit margin of 10.8% demonstrates efficient profitability.
• Gross margin of 28.3% reflects effective cost management in production.
• Dividend yield of 1.00% provides a consistent return to shareholders.

Who Are ODC's Competitors?

ODC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ODC's Key Strengths?

• Strong brand recognition in cat litter and industrial sorbents.
• Diverse product portfolio serving multiple industries.
• Established distribution network.
• Proprietary mineral-based sorbent technology.

What Are ODC's Weaknesses?

• Exposure to fluctuations in raw material costs.
• Dependence on key retail partners.
• Limited geographic diversification.
• Relatively small market capitalization compared to larger chemical companies.

What Could Drive ODC Stock Higher?

• Expansion of the Amlan product line in the animal health and nutrition market.
• Increased demand for industrial sorbent products due to stricter environmental regulations.
• Potential strategic acquisitions to expand product portfolio and market reach.
• Development of new and improved sorbent products through ongoing research and development.

What Are the Key Risks for ODC?

• Fluctuations in raw material costs, particularly for clay and other minerals.
• Increased competition from larger chemical companies with greater resources.
• Changes in environmental regulations affecting the demand for certain sorbent products.
• Economic downturns impacting industrial and consumer spending.

What Are the Growth Opportunities for ODC?

• Expansion in Animal Health and Nutrition: Oil-Dri can capitalize on the growing demand for animal health and nutrition products by expanding its Amlan, Calibrin, Varium, Neoprime, MD-09, and Pel-Unite and Pel-Unite Plus product lines. The global animal health market is projected to reach $76.4 billion by 2027, offering significant growth potential. Timeline: Ongoing.
• Increased Demand for Industrial Sorbent Products: With rising environmental regulations and industrial safety standards, the demand for industrial sorbent products is expected to increase. Oil-Dri can leverage its Oil-Dri brand to capture a larger share of this market. The industrial sorbents market is projected to grow at a CAGR of 4.5% through 2026. Timeline: Ongoing.
• Geographic Expansion: Oil-Dri can expand its international presence by targeting emerging markets with growing industrial and agricultural sectors. Focus on regions with increasing environmental awareness and demand for sorbent solutions. Timeline: Ongoing.
• Product Innovation: Investing in research and development to create new and improved sorbent products can provide a competitive advantage. Focus on developing sustainable and environmentally friendly sorbent solutions to meet evolving customer needs. Timeline: Ongoing.
• Strategic Acquisitions: Oil-Dri can pursue strategic acquisitions to expand its product portfolio and market reach. Target companies with complementary technologies or customer bases to create synergies and enhance growth opportunities. Timeline: Ongoing.

What Opportunities Does ODC Have?

• Expansion in emerging markets.
• Increasing demand for environmentally friendly sorbent products.
• Strategic acquisitions to expand product portfolio.
• Growth in the animal health and nutrition market.

What Threats Does ODC Face?

• Intense competition from larger chemical companies.
• Changes in environmental regulations.
• Economic downturns affecting industrial and consumer spending.
• Fluctuations in currency exchange rates.

What Are ODC's Competitive Advantages?

• Established Brand Reputation: Strong brand recognition for products like Cat's Pride and Oil-Dri.
• Diverse Product Portfolio: Wide range of sorbent products for various applications.
• Proprietary Mineral-Based Sorbent Technology: Unique expertise in developing effective sorbent solutions.
• Extensive Distribution Network: Broad reach through multiple distribution channels.

What Does ODC Do?

Founded in 1941 and headquartered in Chicago, Illinois, Oil-Dri Corporation of America has evolved into a prominent developer, manufacturer, and marketer of sorbent products. The company operates through two primary segments: Retail and Wholesale Products Group and Business to Business Products Group. The Retail and Wholesale Products Group focuses on consumer-facing products such as cat litter under the Cat's Pride and Jonny Cat brands, and sports field products under the Pro's Choice brand. The Business to Business Products Group provides specialized sorbent solutions for agricultural, animal health, and industrial applications. These include agricultural and horticultural products under the Agsorb, Verge, and Flo-Fre brands, animal health and nutrition products under the Amlan, Calibrin, Varium, Neoprime, MD-09, and Pel-Unite and Pel-Unite Plus brands, and bleaching clay and purification aid products under the Pure-Flo, Perform, Select, and Ultra-Clear brands. Oil-Dri's products are sold to a wide array of customers, including mass merchandisers, wholesale clubs, pet specialty retail outlets, industrial distributors, and agricultural suppliers, both in the United States and internationally.

What Products and Services Does ODC Offer?

• Develops and manufactures mineral-based sorbent products.
• Offers cat litter products under the Cat's Pride and Jonny Cat brands.
• Provides agricultural and horticultural products for chemical carriers and growing media.
• Supplies animal health and nutrition products for the livestock industry.
• Produces bleaching clay and purification aid products for various applications.
• Markets industrial and automotive sorbent products for spill cleanup.
• Offers sports field products for baseball, softball, football, and soccer fields.

How Does ODC Make Money?

• Manufactures and sells sorbent products through two segments: Retail and Wholesale Products Group and Business to Business Products Group.
• Generates revenue from the sale of cat litter, industrial absorbents, agricultural products, and animal health products.
• Distributes products through mass merchandisers, wholesale clubs, pet specialty retail outlets, and industrial distributors.
• Focuses on both domestic and international markets to diversify revenue streams.

What Industry Does ODC Operate In?

Oil-Dri Corporation of America operates within the specialty chemicals industry, which is characterized by steady growth driven by demand for specialized products in diverse sectors. The market for sorbent materials is influenced by environmental regulations, industrial safety standards, and consumer preferences for absorbent products. Key competitors include companies offering similar sorbent solutions for industrial, agricultural, and consumer applications. Oil-Dri differentiates itself through its established brand reputation, diverse product portfolio, and focus on mineral-based sorbent technology.

Who Are ODC's Key Customers?

• Mass merchandisers and wholesale clubs (e.g., Walmart, Costco).
• Pet specialty retail outlets (e.g., PetSmart, Petco).
• Industrial cleanup and automotive product distributors.
• Processors and refiners of edible oils, petroleum-based oils, and biodiesel fuel.
• Manufacturers of animal feed and agricultural chemicals.

Oil-Dri Corporation of America (ODC) Valuation Context

Valued at $1.35B, ODC is classified as a small-cap stock. Relative to its peer group, ODC's quantitative score of 97/100 is above the peer average of 75/100.

ROE 20%Key Financial Metrics

Return on equity for Oil-Dri Corporation of America stands at 20.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 13.4%, showing how much profit it generates from its asset base. ODC trades at a trailing price-to-earnings ratio of 19.43, roughly in line with the Basic Materials sector average of ~21x. Its free cash flow yield is 3.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.28 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.5%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Oil-Dri Corporation of America's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 9.79 places it in the safe zone, indicating low near-term bankruptcy risk.

ODC Financials

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ODC Analyst Consensus

ODC MoonshotScore

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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