# Orion Engineered Carbons (OEC.US)

Canonical: https://gigainvestors.com/s/OEC

Analysis as of: 2026-10-16T07:30:51.044Z. Financial observations: FY2012–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $5.60 per share; close as of 2026-10-15.

Estimated value: low $8.41 per share, central $9.53 per share, high $11.03 per share. Buy at or below the central value $9.53 per share. Valuation as of 2026-10-16T07:30:51.044Z; scenarios are not confidence intervals.

Expected annual return: 15.4% at the stated quote. About 15.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 2

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.11×

- FY2018: 0.11×

- FY2019: 0.11×

- FY2020: 0.08×

- FY2021: 0.10×

- FY2022: 0.10×

- FY2023: 0.11×

- FY2024: 0.09×

- FY2025: 0.06×

- LTM to Mar 2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.6%

- ROIC, second-lowest year: 7.8%

- Typical minus recent gross margin: 5.4 pp

- Typical gross margin (annual median): 25.4%

- Recent gross margin (lower of latest and 3-year median): 19.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.8%

- ROIC including acquisitions, ten-year median: 5.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.6%

- FY2017: 17.9%

- FY2018: 17.8%

- FY2019: 16.2%

- FY2020: 7.8%

- FY2021: 10.9%

- FY2022: 10.1%

- FY2023: 10.3%

- FY2024: 9.8%

- FY2025: 6.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.47×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $148M

- Net income, five-year total: $319M

- Return on incremental invested capital: -2.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.6 pp

- Working capital / revenue, final three-year average: 19.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.42×

- FY2024: -0.84×

- FY2025: 1.42×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 17.8% vs 9.8%

- Per-share earnings: 0.82 to 0.76 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: -1.7%

- Market cap gain: -$837M

- Cumulative retained earnings: $335M

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: -1.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.0%

- Per-share value change: -$0.06

- Per-share value, starting three-year median: $0.82

- Per-share value, ending three-year median: $0.76

- Buybacks concentrated in cheaper years (correlation): -0.29

- Average buyback yield: 3.6%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: $37M

- Cumulative net income, 10 years: $659M

- ROIC, first three-year median: 17.8%

- ROIC, last three-year median: 9.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.82

- FY2017: $1.07

- FY2018: $1.99

- FY2019: $1.42

- FY2020: $0.30

- FY2021: $2.21

- FY2022: $1.73

- FY2023: $1.73

- FY2024: $0.76

- FY2025: -$1.24

### accounting: pass

- Sloan accruals: -14.7%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 6.4%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.1%

- FY2017: -7.1%

- FY2018: -0.1%

- FY2019: -11.5%

- FY2020: -7.7%

- FY2021: -0.6%

- FY2022: 1.3%

- FY2023: -13.2%

- FY2024: -4.4%

- FY2025: -14.7%

## Holders

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 80% since Dec 2023 · "OEC Q1 Earnings Miss on Lower Pricing, Sales Down Y/Y" (finance.yahoo.com, May 2026) · sales -1%

Story as of 2026-10-16T09:59:18.864Z; price observation 2026-10-15.

Price needs cash profits to shrink 6% a year for ten years

- 2026-05-13: OEC Q1 Earnings Miss on Lower Pricing, Sales Down Y/Y ([finance.yahoo.com](https://finance.yahoo.com/news/oec-q1-earnings-miss-lower-132300583.html))

### Sales · FY2025–2026

sales -1%; source https://www.sec.gov/Archives/edgar/data/1609804/000162828026008601/oec-20251231.htm; observed 2026-02-17.

- FY2017: $1.3B 

- FY2018: $1.6B 

- FY2019: $1.5B 

- FY2020: $1.1B 

- FY2021: $1.5B 

- FY2022: $2.0B 

- FY2023: $1.9B 

- FY2024: $1.9B 

- FY2025: $1.8B 

- FY2026: $1.8B 

### Gross margin · FY2025

gross margin 19.9%; source https://www.sec.gov/Archives/edgar/data/1609804/000162828026008601/oec-20251231.htm; observed 2026-02-17.

- FY2016: 32.8% 

- FY2017: 28.4% 

- FY2018: 27.2% 

- FY2019: 26.4% 

- FY2020: 25.7% 

- FY2021: 25.0% 

- FY2022: 22.1% 

- FY2023: 23.8% 

- FY2024: 22.8% 

- FY2025: 19.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1609804/000162828026008601/oec-20251231.htm (filed 2026-02-17); FY2025: revenue 1806700000; grossProfit 359800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); OEC.US: Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. The company operates in two segments, Specialty Carbon Black and Rubber Carbon Black. It offers post-treated specialty carbon black grades for coatings and printing applications, as well as high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. The company also provides rubber carbon black products for tires, such as high-reinforcing grades and semi-reinforcing grades under the ECORAX brand, as well as for mechanical rubber goods end users, including automotive production, construction, as well as certain food, consumer, and medical applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Czech republic, Poland, Italy, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

### Why customers stay

Margins ranged from 19.9% to 23.8% during 2023–25; it earns 10.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 23.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 22.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1609804/000162828026008601/oec-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 19.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.1661001703550719],[2017,0.17949399110165468],[2018,0.17834155858303033],[2019,0.16166382008974006],[2020,0.0777314164461782],[2021,0.10925679829756935],[2022,0.10060211597889365],[2023,0.10292547016484792],[2024,0.09762062872795835],[2025,0.06158048181678687]]; median 0.10609113423120864. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 24.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 0; upkeep 71124055; cash acquisitions 0; owner earnings 64980241. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 0; upkeep 90282000; cash acquisitions 0; owner earnings 72934000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 18001000; upkeep 98156000; cash acquisitions 36571000; owner earnings 121310000. Growth capex plus acquisitions / owner earnings = 0.44985574148874785.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 0; upkeep 155848000; cash acquisitions 0; owner earnings 27785000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 110600000; upkeep 104100000; owner earnings 134700000. Growth capex / owner earnings = 0.8210838901262064.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 127100000; upkeep 105700000; owner earnings 106200000. Growth capex / owner earnings = 1.1967984934086628.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 0; upkeep 172800000; owner earnings 43700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,44241252],[2017,45705000],[2018,47665000],[2019,48033000],[2020,12045000],[2021,5000000],[2022,5000000],[2023,4900000],[2024,4800000],[2025,4700000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1609804/000162828026008601/oec-20251231.htm (filed 2026-02-17); FY2025: cash repurchases 24800000 USD.

### Are managers owners

Insiders own 3.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); OEC.US SharesStats.PercentInsiders = 3.868 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate -0.09760507854096598. Price 5.6; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.1730900593777827 → FY2025 -1.7612385483985513. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $18.75 per share

- 2016-11: $19.10 per share

- 2016-12: $18.85 per share

- 2017-01: $20.65 per share

- 2017-02: $20.80 per share

- 2017-03: $20.50 per share

- 2017-04: $20.30 per share

- 2017-05: $17.45 per share

- 2017-06: $19.95 per share

- 2017-07: $21.00 per share

- 2017-08: $21.50 per share

- 2017-09: $22.45 per share

- 2017-10: $23.65 per share

- 2017-11: $24.45 per share

- 2017-12: $25.60 per share

- 2018-01: $29.45 per share

- 2018-02: $27.55 per share

- 2018-03: $27.10 per share

- 2018-04: $26.80 per share

- 2018-05: $28.70 per share

- 2018-06: $30.85 per share

- 2018-07: $32.80 per share

- 2018-08: $36.00 per share

- 2018-09: $32.10 per share

- 2018-10: $25.81 per share

- 2018-11: $26.12 per share

- 2018-12: $25.28 per share

- 2019-01: $27.59 per share

- 2019-02: $27.87 per share

- 2019-03: $18.99 per share

- 2019-04: $20.27 per share

- 2019-05: $17.58 per share

- 2019-06: $21.41 per share

- 2019-07: $19.48 per share

- 2019-08: $13.91 per share

- 2019-09: $16.71 per share

- 2019-10: $16.56 per share

- 2019-11: $18.18 per share

- 2019-12: $19.30 per share

- 2020-01: $15.70 per share

- 2020-02: $14.21 per share

- 2020-03: $7.46 per share

- 2020-04: $9.11 per share

- 2020-05: $11.06 per share

- 2020-06: $10.59 per share

- 2020-07: $10.20 per share

- 2020-08: $12.15 per share

- 2020-09: $12.51 per share

- 2020-10: $14.67 per share

- 2020-11: $15.56 per share

- 2020-12: $17.14 per share

- 2021-01: $15.23 per share

- 2021-02: $17.70 per share

- 2021-03: $19.72 per share

- 2021-04: $19.86 per share

- 2021-05: $20.24 per share

- 2021-06: $18.99 per share

- 2021-07: $18.08 per share

- 2021-08: $17.67 per share

- 2021-09: $18.23 per share

- 2021-10: $18.80 per share

- 2021-11: $17.55 per share

- 2021-12: $18.36 per share

- 2022-01: $17.10 per share

- 2022-02: $15.54 per share

- 2022-03: $15.97 per share

- 2022-04: $15.10 per share

- 2022-05: $19.31 per share

- 2022-06: $15.53 per share

- 2022-07: $17.29 per share

- 2022-08: $16.86 per share

- 2022-09: $13.35 per share

- 2022-10: $15.96 per share

- 2022-11: $18.78 per share

- 2022-12: $17.81 per share

- 2023-01: $21.02 per share

- 2023-02: $25.50 per share

- 2023-03: $26.09 per share

- 2023-04: $24.21 per share

- 2023-05: $23.19 per share

- 2023-06: $21.22 per share

- 2023-07: $21.92 per share

- 2023-08: $22.62 per share

- 2023-09: $21.28 per share

- 2023-10: $20.30 per share

- 2023-11: $23.83 per share

- 2023-12: $27.73 per share

- 2024-01: $22.40 per share

- 2024-02: $22.54 per share

- 2024-03: $23.52 per share

- 2024-04: $23.66 per share

- 2024-05: $24.87 per share

- 2024-06: $21.94 per share

- 2024-07: $24.62 per share

- 2024-08: $18.65 per share

- 2024-09: $17.81 per share

- 2024-10: $14.99 per share

- 2024-11: $18.42 per share

- 2024-12: $15.79 per share

- 2025-01: $13.95 per share

- 2025-02: $13.98 per share

- 2025-03: $12.93 per share

- 2025-04: $12.04 per share

- 2025-05: $10.89 per share

- 2025-06: $10.49 per share

- 2025-07: $9.70 per share

- 2025-08: $10.55 per share

- 2025-09: $7.58 per share

- 2025-10: $5.30 per share

- 2025-11: $5.08 per share

- 2025-12: $5.28 per share

- 2026-01: $6.18 per share

- 2026-02: $5.69 per share

- 2026-03: $6.50 per share

- 2026-04: $7.52 per share

- 2026-05: $7.64 per share

- 2026-06: $6.63 per share

- 2026-07: $6.75 per share

- 2026-08: $6.24 per share

- 2026-09: $5.62 per share

- 2026-10: $5.60 per share

## Annual estimated value (USD per share)

- FY2017: low $13.94 per share, central $15.75 per share, high $18.16 per share

- FY2018: low $16.89 per share, central $19.13 per share, high $22.11 per share

- FY2019: low $15.89 per share, central $17.98 per share, high $20.76 per share

- FY2020: low $11.85 per share, central $13.38 per share, high $15.42 per share

- FY2021: low $15.80 per share, central $17.90 per share, high $20.70 per share

- FY2022: low $19.57 per share, central $22.62 per share, high $26.24 per share

- FY2023: low $8.00 per share, central $9.15 per share, high $10.63 per share

- FY2024: low $8.56 per share, central $9.91 per share, high $11.48 per share

- FY2025: low $8.53 per share, central $9.64 per share, high $11.13 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1609804/000162828026008601/oec-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Steven Romick](https://gigainvestors.com/FPA): 417,388 OEC shares; USD 2,767,000 reported position value; 0.03% of portfolio; hold; quarter 2026 Q2.
- [Richard Pzena](https://gigainvestors.com/PIM): 4,771,969 OEC shares; USD 31,638,000 reported position value; 0.09% of portfolio; add; quarter 2026 Q2.
- [William Browne](https://gigainvestors.com/TB): 90,520 OEC shares; USD 600,000 reported position value; 0.05% of portfolio; add; quarter 2026 Q2.

# OEC — Orion SA

Held by 3 investors · USD 35,005,000 total · 2026 Q2 · reported price USD 6.63 (split-adjusted).
Page: https://gigainvestors.com/s/OEC

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Richard Pzena (https://gigainvestors.com/PIM) | USD 31,638,000 | 0.1% | add +3.74% |
| Steven Romick (https://gigainvestors.com/FPA) | USD 2,767,000 | <0.1% | hold |
| William Browne (https://gigainvestors.com/TB) | USD 600,000 | 0.1% | add +48.1% |

## Total held by quarter

- 2024 Q1: USD 74,957,534 · 2 holders · USD 23.52
- 2024 Q2: USD 66,084,684 · 2 holders · USD 21.94
- 2024 Q3: USD 70,642,688 · 2 holders · USD 17.81
- 2024 Q4: USD 57,329,811 · 2 holders · USD 15.79
- 2025 Q1: USD 47,382,114 · 2 holders · USD 12.93
- 2025 Q2: USD 52,043,470 · 3 holders · USD 10.49
- 2025 Q3: USD 39,004,480 · 3 holders · USD 7.58
- 2025 Q4: USD 26,607,057 · 3 holders · USD 5.28
- 2026 Q1: USD 33,009,698 · 3 holders · USD 6.50
- 2026 Q2: USD 35,005,000 · 3 holders · USD 6.63