Time To Buy Oil-Dri Of America Stock?

June 10th, 2025 by Trefis Team
ODC: Oil-Dri of America logo
ODC
Oil-Dri of America

Oil-Dri of America (NYSE:ODC) stock looks attractive – making it a good pick to buy at its current price of around $55. We believe there are some minor concerns with ODC stock, which makes it attractive given that its current valuation looks low.

We arrive at our conclusion by comparing the current valuation of ODC stock with its operating performance over the recent years as well as its current and historical financial condition. Our analysis of Oil-Dri of America along key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience shows that the company has a strong operating performance and financial condition, as detailed below. However, for investors who seek lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.

How Does Oil-Dri of America’s Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, ODC stock looks slightly cheap compared to the broader market.

• Oil-Dri of America has a price-to-sales (P/S) ratio of 1.5 vs. a figure of 3.0 for the S&P 500
• Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 9.5 compared to 20.5 for S&P 500
• And, it has a price-to-earnings (P/E) ratio of 15.5 vs. the benchmark’s 26.4

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How Have Oil-Dri of America’s Revenues Grown Over Recent Years?

Oil-Dri of America’s Revenues have seen notable growth over recent years.

• Oil-Dri of America has seen its top line grow at an average rate of 12.9% over the last 3 years (vs. increase of 5.5% for S&P 500)
• Its revenues have grown 8.2% from $430 Mil to $465 Mil in the last 12 months (vs. growth of 5.5% for S&P 500)
• Also, its quarterly revenues grew 10.6% to $117 Mil in the most recent quarter from $106 Mil a year ago (vs. 4.8% improvement for S&P 500)

How Profitable Is Oil-Dri of America?

Oil-Dri of America’s profit margins are worse than most companies in the Trefis coverage universe.

• Oil-Dri of America’s Operating Income over the last four quarters was $62 Mil, which represents a moderate Operating Margin of 13.3% (vs. 13.2% for S&P 500)
• Oil-Dri of America’s Operating Cash Flow (OCF) over this period was $75 Mil, pointing to a moderate OCF Margin of 16.1% (vs. 14.9% for S&P 500)
• For the last four-quarter period, Oil-Dri of America’s Net Income was $46 Mil – indicating a poor Net Income Margin of 9.8% (vs. 11.6% for S&P 500)

Does Oil-Dri of America Look Financially Stable?

Oil-Dri of America’s balance sheet looks strong.

• Oil-Dri of America’s Debt figure was $58 Mil at the end of the most recent quarter, while its market capitalization is $762 Mil (as of 6/6/2025). This implies a strong Debt-to-Equity Ratio of 8.3% (vs. 19.9% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $23 Mil of the $354 Mil in Total Assets for Oil-Dri of America.  This yields a moderate Cash-to-Assets Ratio of 6.4% (vs. 13.8% for S&P 500)

How Resilient Is ODC Stock During A Downturn?

ODC stock has seen an impact that was slightly better than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.

Inflation Shock (2022)

• ODC stock fell 41.5% from a high of $19.23 on 11 March 2021 to $11.24 on 11 October 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 9 March 2023
• Since then, the stock has increased to a high of $54.82 on 8 June 2025

Covid Pandemic (2020)

• ODC stock fell 24.6% from a high of $19.19 on 16 January 2020 to $14.46 on 16 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 11 March 2021

Global Financial Crisis (2008)

• ODC stock fell 49.4% from a high of $11.47 on 10 December 2007 to $5.81 on 10 October 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 17 June 2010

Putting All The Pieces Together: What It Means For ODC Stock

In summary, Oil-Dri of America’s performance across the parameters detailed above are as follows:

• Growth: Very Strong
• Profitability: Weak
• Financial Stability: Strong
• Downturn Resilience: Neutral
• Overall: Neutral

Taken together with its low valuation, this makes the stock look attractive, which supports our conclusion that ODC is a good stock to buy.

While ODC stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.

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