Ocean Bio-Chem, Inc.
Find Ratings ReportsOCEAN BIO-CHEM INC's gross profit margin for the third quarter of its fiscal year 2020 has significantly increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. OCEAN BIO-CHEM INC is extremely liquid. Currently, the Quick Ratio is 3.68 which clearly shows the ability to cover any short-term cash needs. OBCI managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 29.45% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 19.16 | 12.5 |
| EBITDA ($mil) | 6.34 | 1.8 |
| EBIT ($mil) | 5.99 | 1.47 |
| Net Income ($mil) | 4.66 | 1.12 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 7.32 | 3.99 |
| Total Assets ($mil) | 50.11 | 39.13 |
| Total Debt ($mil) | 4.65 | 5.01 |
| Equity ($mil) | 38.94 | 30.08 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 47.32 | 37.81 |
| EBITDA Margin | 33.07 | 14.36 |
| Operating Margin | 31.28 | 11.79 |
| Sales Turnover | 1.05 | 1.06 |
| Return on Assets | 18.73 | 6.96 |
| Return on Equity | 24.1 | 9.06 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 5.66 | 6.5 |
| Debt/Capital | 0.11 | 0.14 |
| Interest Expense | 0.04 | 0.03 |
| Interest Coverage | 149.83 | 47.55 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 9.46 | 9.44 |
| Div / share | 0.02 | 0.0 |
| EPS | 0.49 | 0.12 |
| Book value / share | 4.12 | 3.19 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 34906.0 | 56740.0 |
BUY. OCEAN BIO-CHEM INC's P/E ratio indicates a significant discount compared to an average of 36.49 for the Chemical Manufacturing subsector and a significant discount compared to the S&P 500 average of 38.64. To use another comparison, its price-to-book ratio of 3.02 indicates a discount versus the S&P 500 average of 4.02 and a significant discount versus the subsector average of 32.27. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, OCEAN BIO-CHEM INC proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OBCI 12.56 | Peers 25.93 | OBCI 20.31 | Peers 18.28 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. OBCI is trading at a significant discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. OBCI is trading at a premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| OBCI NA | Peers 24.13 | OBCI NA | Peers 1.95 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| OBCI 3.02 | Peers 32.27 | OBCI 230.00 | Peers 171.59 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. OBCI is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. OBCI is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| OBCI 2.24 | Peers 4.26 | OBCI 26.70 | Peers 5.75 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. OBCI is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. OBCI has a sales growth rate that significantly exceeds its peers. |
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