Oil-Dri Corporation Of America Common Stock (ODC)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $32 million in annual free cash flow (3.1% yield on market cap)
• High return on equity of 20.8% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.20, providing financial flexibility
• Altman Z-Score of 7.3 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($39) with negative 82% margin of safety—limited downside protection

AI Analysis

Oil-Dri Corporation Of America Common Stock is a micro-cap basic materials company valued at $1.0 billion. Revenue stands at $479 million. From a quality standpoint, Oil-Dri shows Altman Z-Score of 7.3 confirms fortress-level solvency and strong 21% ROE. On valuation, the stock is reasonably priced at 19.8x earnings, with trades above its Graham Number with a negative 82% margin. Growth dynamics show revenue growing at 0.7% and profit growth of -2.7%. The 1.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $32 million in annual free cash flow (3.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer