Oil‑Dri (ODC) Q1: 10.6% Net Margin Strengthens Bullish Profitability Narrative Despite Revenue Drift

Oil-Dri Corporation of America (ODC) just opened fiscal 2026 with Q1 revenue of about $120.5 million and EPS of roughly $1.06, alongside trailing 12 month revenue of $478.1 million and EPS of $3.64 that frame the current run rate. The company has seen quarterly revenue move from $127.9 million and EPS of $1.13 in Q1 2025 to $120.5 million and $1.06 in Q1 2026, while trailing revenue has stepped up from $437.6 million and EPS of $2.72 back in late 2024 to $478.1 million and $3.64 today. This sets up a quarter where investors will be watching how those stronger margins translate into the story ahead.

See our full analysis for Oil-Dri Corporation of America.

With the headline numbers on the table, the next step is to see how this latest print lines up with the prevailing narratives around Oil-Dri's growth, profitability, and where the business could be heading next.

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Margins Strengthen Behind 10.6% Net Profit

• Over the last 12 months, Oil Dri converted $478.1 million of revenue into $50.6 million of net income, giving it a 10.6% net profit margin versus 8.5% a year earlier.
• What is striking for the bullish case is how consistent profit growth underpins that margin story, with earnings up 38% year over year and five year EPS growth averaging 34.1% per year. Together, these figures suggest that recent margin levels are backed by a multi year improvement rather than a one off jump.
  • That 38% earnings growth on top of a move from 8.5% to 10.6% net margin points to stronger profitability on a trailing 12 month basis than the prior year.
  • The five year 34.1% annualized earnings growth rate lines up with the current $50.6 million of net income, reinforcing that higher earnings are being sustained over time rather than just appearing in a single period.

TTM EPS Near Highs Despite Revenue Drift

• On a trailing basis, Basic EPS sits at $3.64 on $478.1 million of revenue, only modestly below the prior trailing $3.70 EPS on $485.6 million of revenue, even though the most recent single quarter saw revenue ease from $127.9 million in Q1 2025 to $120.5 million in Q1 2026.
• Bulls who frame Oil Dri as a steady earner in defensive end markets will note that this near flat trailing EPS, despite quarterly revenue moving up and down between roughly $115.5 million and $127.9 million over the last five reported quarters, supports the idea that the business model can absorb some top line noise while still producing solid per share profits.
  • Quarterly Basic EPS has ranged from about $0.80 to $1.13 in those same five quarters, yet the trailing figure has held around the mid $3 range, which fits with a view of resilient earnings power.
  • Net income excluding extra items has similarly run between $8.1 million and $15.6 million per quarter over that period, feeding into the current $50.6 million trailing total that keeps EPS elevated relative to earlier years.

Valuation Sits Between Peers And DCF Fair Value

• At a share price of $46.21 and a trailing P E of 15 times, Oil Dri trades roughly in line with peers at 14.8 times, below the Global Household Products industry average of 17.4 times, and well under the indicated DCF fair value of about $150.65 per share.
• For a bullish narrative that argues the stock is mispriced, the tension is that while the DCF fair value implies a very large upside versus $46.21, the P E multiple being close to peers suggests the market already values the company similarly to comparable names, even though earnings have grown 38% over the past year and margins have reached 10.6%.
  • The gap between 15 times P E and the sector’s 17.4 times leaves some room on a simple multiple basis, but not nearly as large as the difference implied by the DCF fair value against today’s price.
  • At the same time, the absence of substantial insider selling over the last three months sits alongside that 38% annual earnings growth, which some investors may see as supportive when weighing whether the current multiple reflects those fundamentals.

📊 Read the full Oil-Dri Corporation of America Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Oil-Dri Corporation of America's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Oil Dri’s earnings growth and margins look strong, but the share price already trades close to peers. This makes the DCF implied upside feel uncertain.

If you worry about paying up where upside looks theoretical, use our these 903 undervalued stocks based on cash flows to focus on ideas where valuations and fundamentals line up more convincingly right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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