Earnings quality appears conservative, evidenced by an OCF/NI ratio that reached 2.89 in 2024Q4, though free cash flow remains sensitive to working capital swings, such as the $12.9 million outflow observed in 2026Q1.
| Metric | TTM | Jul'25 | Jul'24 | Jul'23 | Jul'22 | Jul'21 | Jul'20 | Jul'19 | Jul'18 | Jul'17 | Jul'16 | Jul'15 | Jul'14 | Jul'13 | Jul'12 | Jul'11 | Jul'10 | Jul'09 | Jul'08 | Jul'07 | Jul'06 | Jul'05 | Jul'04 | Jul'03 | Jul'02 | Jul'01 | Jul'00 | Jul'99 | Jul'98 | Jul'97 | Jul'96 |
|---|
| Cash from Operations | 75.56M | 80.18M | 60.31M | 49.76M | 9.84M | 13.64M | 42.46M | 26.74M | 10.61M | 26.95M | 25.17M | 26.98M | 16.3M | 23.37M | 23.34M | 13.11M | 26.22M | 15.81M | 11.34M | 16.85M | 10.63M | 12.81M | 18.29M | 17.49M | 18.18M | 14.72M | 5.96M | 9.6M | 6.5M | 13.2M | 12.5M |
| Operating CF Margin % | - | 16.51% | 13.78% | 12.05% | 2.82% | 4.47% | 14.99% | 9.65% | 3.99% | 10.27% | 9.6% | 10.32% | 6.12% | 9.32% | 9.7% | 5.78% | 11.97% | 6.69% | 4.88% | 7.94% | 5.18% | 6.82% | 9.86% | 10.11% | 11.2% | 8.77% | 3.4% | 5.52% | 4.05% | 8.43% | 8.13% |
| Operating CF Growth % | -16.2% | 32.94% | 21.2% | 405.83% | -27.85% | -67.89% | 58.78% | 152.01% | -60.62% | 7.06% | -6.69% | 65.54% | -30.26% | 0.12% | 78.05% | -50% | 65.78% | 39.44% | -32.7% | 58.45% | -16.98% | -29.94% | 4.55% | -3.78% | 23.51% | 147.08% | -37.96% | 47.69% | -50.76% | 5.6% | 1.63% |
| Net Income | 52.55M | 54M | 39.43M | 29.48M | 5.61M | 10.98M | 18.74M | 12.62M | 8.22M | 10.79M | 13.61M | 11.37M | 8.36M | 14.59M | 6.1M | 9.05M | 9.46M | 9.59M | 9.04M | 7.66M | 5.26M | 6.54M | 5.03M | 3.08M | -1.09M | 913K | 2.23M | 7.2M | 4.7M | 6.8M | 3.4M |
| Depreciation & Amortization | 22.84M | 22.04M | 19.28M | 15.53M | 13.47M | 14.18M | 13.92M | 13.33M | 12.76M | 12.77M | 12.19M | 11.99M | 10.4M | 8.95M | 9.27M | 8.47M | 7.37M | 7.41M | 6.76M | 6.62M | 6.61M | 7.2M | 8.01M | 8.53M | 8.79M | 9.09M | 9.1M | 8.5M | 7.8M | 7.6M | 7.9M |
| Stock-Based Compensation | 1.27M | 5.37M | 4.82M | 3.15M | 2.74M | 2.53M | 3.37M | 2.41M | 1.6M | 1.51M | 1.25M | 1.14M | 1.19M | 864K | 727K | 641K | 340K | 460K | 0 | 1.08M | 451K | 195K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 85K | 240K | 1.7M | -4.43M | -2.3M | 5.2M | 453K | -406K | 7.27M | 2.41M | -8.11M | -2.45M | 284K | -398K | -2.57M | 3.52M | -1.76M | -2.24M | -347K | 761K | 192K | 952K | 204K | -118K | -817K | -549K | 439K | 700K | -1.3M | -200K | -1.8M |
| Other Non-Cash Items | -4.59M | -1.03M | 372K | 6.2M | 5.2M | -7.73M | -3.82M | -2M | -8.87M | -3.92M | 177K | 68K | 433K | -133K | 2.02M | -108K | -409K | 1.91M | 677K | 523K | -698K | 202K | 1.06M | 936K | 3.54M | 1.04M | 1.24M | 0 | 1.8M | 100K | 200K |
| Working Capital Changes | 993K | -432K | -5.28M | -165K | -14.89M | -11.52M | 9.8M | 798K | -10.37M | 3.38M | 6.06M | 4.85M | -4.36M | -499K | 7.79M | -8.46M | 11.22M | -1.31M | -5.01M | 210K | -1.18M | -2.28M | 3.98M | 5.05M | 7.76M | 4.22M | -7.05M | -6.8M | -6.5M | -1.2M | 2.8M |
| Change in Receivables | -10.18M | -7.79M | 1.45M | -7.9M | -10.65M | -5.96M | -12K | -1.73M | -522K | -2.33M | 942K | -646K | 82K | -984K | -1.03M | -2.08M | 1.88M | 2.35M | 0 | -2.14M | -2.63M | 531K | 0 | 0 | 0 | -5.96M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 4.12M | 2.34M | -4.68M | -2.2M | -12.11M | 518K | 213K | -1.69M | 225K | 666K | -1.95M | 3.11M | -2.97M | -1.05M | -456K | -3.21M | 1.77M | -51K | -2.51M | 460K | -3.01M | -287K | 108K | 486K | 3.65M | 1.48M | -1.76M | -1.9M | -2.4M | 1.1M | -800K |
| Change in Payables | -220K | 926K | -2.79M | 3.24M | 5M | -2.41M | 4.24M | 590K | -2.44M | 2.42M | -931K | 571K | 187K | 135K | 456K | 275K | 1.7M | -1.77M | 0 | -934K | 2.76M | -26K | 0 | 0 | 0 | -2.41M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -28.62M | -32.53M | -76.12M | -24.57M | -22.81M | -18.83M | -14.68M | -7.89M | 2.57M | -28.04M | -18.41M | -14.25M | -15.57M | -19.02M | -270K | -23.66M | -7.89M | -2.19M | -10.89M | -5.47M | -14.98M | -3.58M | -10.43M | -13.69M | -11.6M | -4.91M | -5.99M | -8.4M | -20M | -4.9M | -5.8M |
| Capital Expenditures | -29M | -32.56M | -32M | -24.37M | -22.83M | -18.84M | -14.74M | -15.03M | -15.07M | -14.76M | -10.68M | -15.86M | -18.57M | -9.79M | -6.96M | -13.81M | -10.41M | -15.25M | -8.6M | -7.76M | -10.83M | -7.31M | -6.07M | -4.88M | -4.1M | -5.61M | -6M | -8.5M | -21.2M | -5.4M | -7.2M |
| CapEx % of Revenue | 5.92% | 6.71% | 7.31% | 5.9% | 6.55% | 6.18% | 5.2% | 5.43% | 5.67% | 5.63% | 4.07% | 6.07% | 6.97% | 3.91% | 2.89% | 6.09% | 4.75% | 6.46% | 3.7% | 3.66% | 5.28% | 3.89% | 3.27% | 2.82% | 2.52% | 3.34% | 3.43% | 4.89% | 13.23% | 3.45% | 4.68% |
| Acquisitions | 62K | -115K | -44.3M | -269K | 21K | 9K | 205K | 15.03M | -730K | 14.76M | 10.68M | 15.86M | -12.88M | 9.79M | 6.96M | 13.81M | 10.41M | 80.96M | 0 | 0 | 0 | 0 | 0 | 679K | 0 | 496K | 12K | 0 | 100K | 600K | 900K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 151K | 182K | 70K | 0 | 0 | -142K | -15.02M | 1.79M | -14.7M | -10.42M | -14.8M | 51K | -9.73M | -6.93M | -13.66M | -10.04M | 27K | 43K | 57K | 1.01M | 37K | 636K | -6.65M | 319K | 237K | -9K | 100K | 100K | -100K | -200K |
| Cash from Financing | -23.49M | -21.74M | 8.33M | -9.52M | 4.7M | -11.32M | -8.75M | -9.89M | -9.34M | -8.55M | -8.44M | -8.74M | -8.37M | -7.45M | -13.89M | 9.93M | -11.31M | -9.08M | -5.67M | -5.55M | 5.56M | -9.64M | -6.26M | -6.2M | -3.86M | -6.75M | -2.94M | -6.2M | 12.9M | -8.4M | -5.4M |
| Debt Issued (Net) | -1M | -11M | 19M | -1M | 24M | -1M | 3.68M | -3.08M | -3.08M | -3.08M | -3.48M | -3.5M | -3.5M | -3.8M | -3.6M | 15M | -3.2M | -5.58M | -4.08M | -4.08M | 11.92M | -4.08M | -4M | -2.85M | -2.16M | -4.78M | 807K | -1.7M | 23.1M | -1.6M | -900K |
| Equity Issued (Net) | -12.76M | -2.35M | -2.78M | -1.08M | -11.81M | -3.13M | -5.54M | -147K | -26K | 35K | 448K | -73K | 7K | 712K | -5.89M | -1.34M | -4.63M | 10K | 1.46M | 1.1M | -4.72M | -3.62M | -487K | -1.51M | -4K | -3K | -1.75M | -2.6M | -8.2M | -4.9M | -2.4M |
| Dividends Paid | -9.73M | -8.39M | -7.81M | -7.43M | -7.38M | -7.19M | -7.03M | -6.66M | -6.23M | -5.93M | -5.6M | -5.25M | -4.96M | -4.63M | -4.49M | -4.22M | -3.99M | -3.68M | -3.38M | -3.04M | -2.4M | -2.21M | -2M | -1.88M | -1.89M | -1.89M | -1.91M | -1.9M | -1.8M | -2M | -2M |
| Share Repurchases | -12.76M | -2.35M | -2.78M | -1.08M | -11.81M | -3.13M | -5.54M | -147K | -26K | -135K | -18K | -122K | -87K | -175K | -6.25M | -2.47M | -5.99M | -656K | -20K | -16K | -7.81M | -8.21M | -1.82M | -1.51M | -4K | -3K | -1.75M | -2.6M | -8.2M | -4.9M | -2.4M |
| Other Financing | 0 | 0 | -90K | -7K | -114K | 0 | 142K | 0 | 0 | 424K | 194K | 77K | 86K | 268K | 92K | 486K | 505K | 172K | 334K | 474K | 763K | 266K | 223K | 41K | 190K | -4.65M | -83K | 0 | -200K | 100K | -100K |
| Net Change in Cash | 23.52M | 25.98M | -7.27M | 15.46M | -8.29M | -16.3M | 19.03M | 9.11M | 3.66M | -9.53M | -1.51M | 3.91M | -7.8M | -3.06M | 9.21M | -877K | 6.92M | 4.99M | -5.29M | 5.53M | 662K | -403K | 1.59M | -2.4M | 2.71M | 3.06M | -2.97M | -5M | -10M | -10.1M | -8.8M |
| Free Cash Flow | 46.57M | 47.62M | 28.31M | 25.4M | -12.99M | -5.2M | 27.72M | 11.71M | -4.46M | 12.19M | 14.49M | 11.12M | -2.27M | 13.57M | 16.38M | -698K | 15.8M | 561K | 2.74M | 9.09M | -192K | 5.5M | 12.22M | 12.61M | 14.08M | 9.11M | -45K | 1.1M | -14.7M | 7.8M | 5.3M |
| FCF Margin % | 9.51% | 9.81% | 6.47% | 6.15% | -3.73% | -1.71% | 9.79% | 4.23% | -1.68% | 4.65% | 5.52% | 4.25% | -0.85% | 5.42% | 6.81% | -0.31% | 7.21% | 0.24% | 1.18% | 4.29% | -0.09% | 2.93% | 6.59% | 7.29% | 8.67% | 5.43% | -0.03% | 0.63% | -9.17% | 4.98% | 3.45% |
| FCF Growth % | 2.11% | 68.19% | 11.49% | 295.46% | -149.72% | -118.77% | 136.66% | 362.53% | -136.62% | -15.88% | 30.31% | 589.74% | -116.73% | -17.14% | 2446.56% | -104.42% | 2716.93% | -79.52% | -69.88% | 4836.46% | -103.49% | -54.99% | -3.09% | -10.46% | 54.61% | 20337.78% | -104.09% | 107.48% | -288.46% | 47.17% | 0% |
| FCF per Share | 3.35 | 2.82 | 1.60 | 1.54 | -0.99 | -0.39 | 2.04 | 0.81 | -0.31 | 0.85 | 1.02 | 0.79 | -0.16 | 0.98 | 1.16 | -0.05 | 1.09 | 0.04 | 0.19 | 0.65 | -0.01 | 0.37 | 0.82 | 0.88 | 1.00 | 0.65 | -0.00 | 0.07 | -0.96 | 0.47 | 0.31 |
| FCF Conversion (FCF/Net Income) | 0.89x | 1.56x | 1.62x | 1.78x | 1.73x | 1.28x | 2.37x | 2.21x | 1.32x | 2.56x | 1.89x | 2.40x | 1.98x | 1.63x | 3.89x | 1.47x | 2.77x | 1.65x | 1.25x | 2.20x | 2.02x | 1.96x | 3.63x | 5.67x | -16.61x | 16.12x | 2.67x | 1.33x | 1.38x | 1.94x | 3.68x |
| Interest Paid | 849K | 0 | 1.09M | 1.14M | 767K | 400K | 273K | 0 | 282K | 484K | 622K | 826K | 1.08M | 1.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -9.51M | 0 | 10.01M | 7.37M | 178K | 6.15M | 2.32M | 0 | 1.99M | 3.18M | 6.69M | 2.34M | 3.02M | 5.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Energy cost volatility exposure
According to the provided financial data, ODC consistently reports operating cash flow that exceeds net income, with an OCF/NI ratio reaching as high as 2.89 in 2024Q4, suggesting that reported earnings are conservative relative to the actual cash generated by the underlying mineral processing operations.
The persistent gap between net income and operating cash flow appears to be driven by significant non-cash charges, likely related to the depreciation of heavy mining and kiln infrastructure. Investors should monitor whether this conversion quality remains elevated as the company scales its higher-margin animal health segment.
As reported in quarterly filings, free cash flow margins have exhibited significant volatility, swinging from a negative 1.5% in 2025Q1 to a robust 14.0% in 2025Q2, which indicates that the company's cash generation is highly sensitive to the timing of working capital requirements and capital expenditures.
The erratic FCF trajectory suggests that while the core business is cash-generative, the timing of inventory builds and maintenance projects can temporarily mask the company's true earnings power. This variability warrants caution when projecting short-term liquidity, as the business remains susceptible to sudden shifts in operational cash needs.
Based on the reported figures, ODC maintains a capital intensity where CapEx as a percentage of revenue has fluctuated between 4.3% and 10.0% over the last ten quarters, reflecting the ongoing necessity of reinvesting in mineral extraction assets and energy-intensive processing equipment to maintain competitive advantage.
The elevated CapEx levels suggest that the company must continuously commit significant capital to sustain its vertical integration, which acts as a barrier to entry but also limits free cash flow conversion. Analysts should investigate whether these investments are primarily for maintenance or if they represent growth-oriented capacity expansion.
Analysis of the cash flow statements reveals that working capital changes have been a major source of volatility, with a notable $12.9 million outflow in 2026Q1 followed by a $10.7 million inflow in 2026Q3, indicating significant fluctuations in inventory management and trade receivables collection cycles.
These swings suggest that the company's cash position is frequently impacted by the timing of raw material procurement and the seasonal nature of its retail and industrial product demand. Investors should monitor these cycles closely, as they appear to be the primary driver of short-term cash flow instability.
As indicated by the financial statements, ODC prioritizes a conservative capital allocation approach, evidenced by consistent dividend payments and minimal share repurchases, while maintaining a strong cash position that has allowed for strategic flexibility without the need for significant external debt financing.
The company's preference for maintaining a fortress balance sheet over aggressive capital returns suggests a management philosophy focused on long-term stability and self-funded growth. This approach appears to insulate the firm from interest rate risks, though it may limit the potential for rapid valuation re-ratings.
Quick answers to the most common questions about buying ODC stock.
Oil-Dri Corporation of America (ODC) generated $80.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Oil-Dri Corporation of America (ODC) generated $47.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Oil-Dri Corporation of America (ODC) spent $32.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Oil-Dri Corporation of America (ODC) returned $8.4M to shareholders via cash dividends and spent $2.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.