Orion S.A. (OEC) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Orion's EV/EBITDA of 5.4 is below its 5-year median of 7.0.

P/B below the industry

Orion's price-to-book of 0.57 is below the Chemicals and Allied Products median of 2.24.

Trading below fair value

The share price of $3.99 is below our fair value estimate of $26.22.

Margin of safety over 20%

The price is 84.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.9% over the last twelve months; the Chemicals and Allied Products median is 11.0%.

Guidance lowered

Orion lowered its full year free cash flow outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 18.5% over the last twelve months, against 20.3% a year earlier.

Return on equity under 15%

Return on equity was -8.1% over the last twelve months and averaged 19.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.7%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Orion's return on equity of -8.1% is below the Chemicals and Allied Products median of 7.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -1.8% over the last twelve months, against a 5-year average of 3.6%.

Net margin below the industry

Orion's net margin of -1.8% is below the Chemicals and Allied Products median of 5.6%.

High debt

Debt is 248% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 408% five years ago to 248%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 16.8% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.06 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.44; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Orion paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Orion yields 1.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 10.8% of free cash flow.