Orion S.a.

Industrials
Major Chemicals
www.orioncarbons.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.04B
PE 33
Debt $970.50M
Cash $54.70M
EV $1.95B
FCF -$94.50M

Earnings

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Sales & Net Margins

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Earnings	$31.90M
EBIT	$108.50M
ROE	7%
ROA	5%
FCF	-$94.50M
Equity	$476.30M
Growth Stability	20%
PE	32.53
PEG	2.75
PB	2.18
P/FCF	-10.98
P/S	0.54
Price/Cash	0.05
Debt/Equity	2.04
Debt/FCF	-10.27
Net Margins	2%
Gross Margins	22%
Op. Margins	6%
Earnings CAGR	5%
Sales Growth YoY	-1%
Sales Growth QoQ	-3%
Sales CAGR	10%
FCF CAGR	4%
Equity CAGR	32%
Earnings Stability	-0.34
Earnings Growth YoY	-177%
Earnings Growth QoQ	-199%
Earnings CAGR 5Y	12%

Sales CAGR 5Y	12%
FCF CAGR 5Y	13%
Equity CAGR 5Y	32%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	27%
Equity CAGR 3Y	14%
Market Cap	$1.04B
Revenue	$1.91B
Dividend Yield	0%
Payout Ratio	15%
Assets	$2.00B
Total Debt	$970.50M
Cash	54.7M
Shares Outstanding	57.72M
EV	1.95B
Earnings Score	6%
Moat Score	68%
Safety Score	33%
Final Score	36%
Working Capital	140.2M
Current Ratio	1.24
Gross Profit	$426.80M
Shares Growth 3y	-2%
Equity Growth QoQ	-5%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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Orion Engineered Carbons SA is a producer of carbon black. The company's operating segments are Specialty Carbon Black and Rubber Carbon Black. It generates maximum revenue from the Rubber Carbon Black segment. Rubber Carbon Black segment is used in the reinforcement of rubber in tires and mechanical rubber goods. The Specialty Carbon Black segment is used as pigments and performance additives in coatings, polymers, printing, and special applications. Geographically, it derives a majority of revenue from Germany.

SEC Filings

Direct access to Orion S.a. (OEC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Orion S.a. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Orion S.a. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 5%

Stability -34%

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Orion S.a. Discounted Cash Flow

Fully customizable DCF calculator online for Orion S.a..

Years

Calculation mode

= -$1.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$95M	-$98M	-$103M	-$107M	-$111M	-$116M	-$121M	-$126M	-$131M	-$137M	-$143M	-$1.4B
DCF		-$90M	-$85M	-$80M	-$76M	-$72M	-$68M	-$65M	-$61M	-$58M	-$55M	-$551M
Value	-$1.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-	4%	5%	8%	6%	2%	9%	5%	5%	2%
ROA	-	-	-	15%	12%	5%	14%	10%	12%	5%
ROE	-	-	-	76%	47%	10%	42%	23%	22%	7%

Bad Net Margins (1.87%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	117.5	9.16	-37.56	-11.26	-6.03	4.7	-10.27
Debt over Equity	-	-	7.21	4.31	3.58	4.08	2.45	1.99	1.7	2.04
Growth Stability	-	-	-	100%	100%	20%	100%	100%	100%	20%

Good Debt/FCF ratio (-10.27)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (2.04)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (20%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-	17%	19%	-6%	-23%	36%	31%	-7%	12%
Earnings YoY growth	-	-	31%	87%	-28%	-79%	642%	-21%	-3%	12%
Equity YoY growth	-	4%	74%	67%	17%	-3%	77%	44%	4%	32%
FCF YoY growth	-	-	-54%	-88%	1K%	-127%	253%	118%	-214%	13%