OMG Investment Analysis Report & Stock Research, OM Group, Inc.

OM Group, Inc. (OMG)

OMG Stock Report

2-Year Price History

View Larger OMG Chart
NYSE:OMG
$30.66
(2/9 2:43PM)
+2.0%
Open$30.5 Mkt Cap$918.8 Million
High$31.23 52Wk High$36.50
Low$30.09 52Wk Low$13.90
Volume118,924 Avg Vol 10D327,800

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OMG Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at OMG through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.41x and 0.52x respectively.

Utilizing this range we can see that OMG’s current Price to Sales per share ratio of 1.01x is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about OMG we would need to see a drop in the Price to Sales ratio of 4% given current sales per share levels in order to return to its historical weighted average.

OMG Cash Earnings

When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of OMG, it appears that either the current estimate for Cash Earnings is negative or OMG is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters. Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis OMG receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.

OMG Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

Peer Comparison

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OM Group, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including OMG) 21.07 3.68 » 39.99 0.96 0.35 » 1.77 5.00% 10.36%
*10 year range does not include current year values
H.B. Fuller Company FUL $947.5 Million $19.45 7.47 3.62 » 20.77 0.79 0.37 » 1.30 -2.62% 11.66%
OM Group, Inc. OMG $918.8 Million $30.07 -1.00 1.26 » 57.39 1.01 0.02 » 2.70 13.75% 19.34%
Minerals Technologies Inc. MTX $868.5 Million $46.36 16.37 4.82 » 65.69 1.00 0.43 » 1.53 6.45% 5.98%
Kronos Worldwide, Inc. KRO $761.5 Million $15.55 57.42 2.89 » 67.15 0.67 0.21 » 2.12 5.49% 21.03%
Arch Chemicals, Inc. ARJ $694.7 Million $27.73 9.91 4.21 » 15.32 0.53 0.22 » 0.80 8.14% 7.64%
Calgon Carbon Corp. CCC $681.1 Million $12.44 14.18 2.87 » 31.04 1.79 0.52 » 3.11 7.54% 5.50%
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6:41P, Jan. 22,2009 OMG $18.42 OM Group, Inc.
Mad Money

OM Group, Inc. (OMG) Discussed on CNBC's Mad Money

OM Group, Inc. is in the news. Find out how this impacts OMG trading on Ockham Research.

I was going to be in ohio right >> you are? >> oh, well -- figuratively. Hey, during green week in 2007 you recommended OM group, symbol o america g. >> when it hit 58 in april of '08 you suggested to sell. Good call. >> I like omg's leadership, green seems to be back and with oil prices eventually increasing is it time to ride this one back up. >> this is an oil mineral company and I cannot recommend the mineral company until I see

“… ms to be back and with oil prices eventually increasing is it time to ride this one back up. >> this is an oil mineral company and I cannot recommend the mineral company until I see …”

View All OM Group, Inc. Stock News

Key Fundamentals

OMG - OM Group, Inc. Fundamentals
Price (2/9 2:43PM) $30.66
Volume (2/9 2:43PM) 118,924
Last Close Price $30.07
10 Day Average Volume 327,800
13 Week Price Range $29.41 - $36.50
52 Week Price Range $13.90 - $36.50
LTM Revenue $926.9 Million
 
Shares Outstanding (12/2008) 30.6 Million
Market Capitalization $918.8 Million
Shares Held By Institutions 29.8 Million
Institutional Holders 221
% Shares Held By Institutions 97%
Earnings Per Share (EPS) $4.45
P/E Ratio n/a
Book Value Per Share $36.46
 
Gross Margin 17.60%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.78
Fiscal Year Ends December

About OM Group, Inc.

OM Group, Inc. is considered to operate in the Basic Materials sector. They specifically operate in the Specialty Chemicals business segment contained within the Chemicals industry.

The Company is a global developer, producer and marketer of value-added specialty chemicals and advanced materials which are essential to complex chemical and industrial processes.