Orion SA produces and supplies specialty and rubber carbon black, with over 280 and 80 grades, respectively. As of December 31, 2016, it operated 13 global production facilities and three sales companies.
Based on our analysis, Orion S.A has received a 4 out of 5 stars undervalued rating from Cashu due to its compelling financial metrics compared to its industry peers.
Orion S.A exhibits a Price-to-Earnings (PE) ratio of 23.33, which is significantly higher than the sector average of 15.17. While a high PE ratio may suggest overvaluation, it can also indicate strong growth expectations. In this case, investors may be pricing in potential future earnings growth that is not yet reflected in the current share price.
The Price-to-Book (PB) ratio stands at 1.92, compared to the sector average of 1.56. This indicates that investors are willing to pay a premium for each unit of equity, suggesting confidence in the company's underlying assets.
Orion's net profit margin is notably positive at 2.35, contrasting sharply with the sector's alarming -319.36. A positive margin indicates that the company is effectively converting revenue into profit, a critical sign of operational efficiency.
Additionally, the Return on Equity (ROE) of 9.31 outperforms the sector average of -21.38, highlighting that Orion is generating a solid return on shareholder equity, which is essential for long-term growth.
However, the dividend yield of 0.77 is below the sector average of 1.95, which may deter income-focused investors. Despite this, the Return on Assets (ROA) of 2.38 versus the sector's -18.30 shows that Orion is utilizing its assets more efficiently than its competitors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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