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Oil-Dri Corporation of America (ODC)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$62.04 - $127.07$86.97
Multi-Stage$52.67 - $57.64$55.11
Blended Fair Value$71.04
Current Price$55.39
Upside28.26%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.61%4.81%0.570.530.510.500.490.480.450.420.400.38
YoY Growth--7.55%5.02%0.76%2.57%2.30%5.62%6.84%5.13%5.82%6.73%
Dividend Yield--1.03%1.57%1.77%3.41%2.80%2.81%2.59%2.75%1.92%2.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)51.30
(-) Cash Dividends Paid (M)6.30
(=) Cash Retained (M)45.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.266.413.85
Cash Retained (M)45.0045.0045.00
(-) Cash Required (M)-10.26-6.41-3.85
(=) Excess Retained (M)34.7438.5941.15
(/) Shares Outstanding (M)14.6614.6614.66
(=) Excess Retained per Share2.372.632.81
LTM Dividend per Share0.430.430.43
(+) Excess Retained per Share2.372.632.81
(=) Adjusted Dividend2.803.063.24
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.39%5.39%6.39%
Fair Value$62.04$86.97$127.07
Upside / Downside12.00%57.02%129.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)51.3054.0656.9860.0563.2866.6968.69
Payout Ratio12.28%27.82%43.37%58.91%74.46%90.00%92.50%
Projected Dividends (M)6.3015.0424.7135.3747.1260.0263.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.39%5.39%6.39%
Year 1 PV (M)13.6613.7913.92
Year 2 PV (M)20.3720.7621.16
Year 3 PV (M)26.4727.2428.02
Year 4 PV (M)32.0133.2634.54
Year 5 PV (M)37.0338.8440.71
PV of Terminal Value (M)642.79674.18706.77
Equity Value (M)772.33808.06845.12
Shares Outstanding (M)14.6614.6614.66
Fair Value$52.67$55.11$57.64
Upside / Downside-4.90%-0.50%4.06%

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