Oil-Dri Corp. of America (ODC)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
$87.90-1.39%
Close 2026-09-04 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
Intact: The reason to own it still holds.
Oil-Dri grows sales about 9% yearly, driven by absorbent products demand. Profitability remains solid with EPS expected near $2.93 next quarter. The company returns cash to shareholders through dividends rising to $0.225 per share and a share buyback program. It operates with stable management and a strong balance sheet.
Growth could slow below 4% if demand weakens or competition intensifies. Profit margins might compress if raw material costs rise. The stock trades expensive with a price-to-earnings ratio above peers, risking a valuation pullback.
The stock price is about 31% above our valuation level, reflecting expectations of roughly 4% revenue growth. Our view sees growth closer to 7% over three years, suggesting some optimism is already included in the price.
Breaks if: Dividend cut or suspension of share buyback program
The Board authorized the repurchase of up to 500,000 shares of Common Stock.
The Board declared quarterly cash dividends of $0.225 per share of Common Stock.
Newly stated in 2026-Q3. The Board declared quarterly cash dividends of $0.225 per share of Common Stock, up from $0.205 in the previous quarter. This reflects a commitment to returning value to shareholders through increased dividends.
“The Board declared quarterly cash dividends of $0.225 per share of Common Stock.”
Breaks if: EPS falls below $2.81 next quarter
Breaks if: YoY revenue growth falls below 4% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a long-term thesis on a materials company with stable management and strong recent financial performance. However, the investment carries elevated risks due to a history of earnings misses and an expensive valuation compared to peers.
The market seems to expect continued strong performance, but the valuation is considered stretched. There is an expectations gap of 0.17, indicating that the stock may be priced for higher growth than what is currently supported by fundamentals.
Management is focused on increasing dividends and has announced a share buyback program, although the execution quality has been weak. Near-term risks are elevated, with a nearly 50% probability of missing earnings expectations, which could impact future performance.
The long-term thesis hinges on ODC's ability to maintain guidance and avoid further earnings misses. Additionally, favorable conditions in the materials sector, such as rising inflation or strong performance from sector leaders, could support ODC's growth.
Overall, ODC's fundamentals are strong, but the elevated risks and expensive valuation create uncertainty. Not investment advice.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.