Orion Engineered Carbons S.A Common Shares (OEC) Company Bio
Orion Engineered Carbons is a worldwide supplier of Carbon Black. The company offers standard and high-performance products for Coatings, Printing Inks, Polymers, Rubber and other applications. The company's Gas Blacks, Furnace Blacks and Specialty Carbon Blacks tint, colorize and enhance the performance of plastics, paints and coatings, inks and toners, adhesives and sealants, tires, and manufactured rubber goods such as automotive belts and hoses. The company was founded in 2011 and is based in Luxembourg.
OEC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Orion Engineered Carbons SA with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Orion Engineered Carbons SA ranked in the 49th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 26.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Orion Engineered Carbons SA ended up being:
The company's balance sheet shows it gets 38% of its capital from equity, and 62% of its capital from debt. Notably, its equity weight is greater than just 21.79% of US equities in the Basic Materials sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 4.01 years, is -0.1% -- higher than merely 17.2% of stocks in our DCF forecasting set.
Orion Engineered Carbons SA's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 3.03% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Orion Engineered Carbons SA? See GLT, CCF, SCHN, ACH, and GGB.