Orion S.A. Common Shares (OEC)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and have staying power. Orion is a specialty chemicals maker, primarily carbon black, with 1,639 employees and two segments. The economics have been uneven. In fiscal 2023, the year ended 2023-12-31, it earned $103.5M; in fiscal 2024, the year ended 2024-12-31, it earned $44.2M; in fiscal 2025, the year ended 2025-12-31, it lost $70.1M. In fiscal Q3 2025, the quarter ended 2025-09-30, it lost $67.1M; by fiscal Q2 2026, the quarter ended 2026-06-30, it eked out $1.8M of net income on $500.9M of revenue. That is progress, but a 0.36% margin is thin. FairStock's ROCE of 2.21% and ROE of -22.74% tell me the business is not currently earning a worthwhile return. The balance sheet is leveraged: D/E 3.02 and Altman Z-Score 0.68. Still, trailing free cash flow of $25.5M gives a 7.8% FCF yield at the 2026-10-13 close, and a Piotroski F-Score of 8/9 indicates some improvement. At the 2026-10-13 close of $5.76, P/B is 0.86, below book, but P/E is -3.39 because of losses. EV/EBITDA of 9.81 is not a bargain for a cyclical, capital-intensive chemical maker. The computed Lynch category is TURNAROUND: a loss in the latest year after earlier profits. The market may be pricing recovery, but high debt and weak margins mean the margin of safety is uncertain. A FairStock Score of 32/100 reinforces the caution, and I would want to see durable profit recovery before calling this a sound value.

In plain English: Orion makes carbon black, a material used in tires, coatings, plastics and batteries. The business looks weak right now: it lost money in fiscal 2025, though it made a small profit in the most recent quarter. At the latest close, the stock looks inexpensive compared with its accounting value and cash generation, but weak profits and heavy debt make it risky.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer