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NEW YORK (TheStreet) -- Oil-Dri Corporation of America (ODC) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate OIL DRI CORP AMERICA (ODC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ODC's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- ODC's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ODC has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 368.09% to $1.75 million when compared to the same quarter last year. In addition, OIL DRI CORP AMERICA has also vastly surpassed the industry average cash flow growth rate of 62.39%.
- The change in net income from the same quarter one year ago has exceeded that of the Household Products industry average, but is less than that of the S&P 500. The net income has significantly decreased by 26.6% when compared to the same quarter one year ago, falling from $2.89 million to $2.12 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.87%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 26.82% compared to the year-earlier quarter. Despite the heavy decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- You can view the full analysis from the report here: ODC Ratings Report