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Omnova Solutions (Omnova Solutions) Net-Net Working Capital : $-8.61 (As of Feb. 2020)


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What is Omnova Solutions Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Omnova Solutions's Net-Net Working Capital for the quarter that ended in Feb. 2020 was $-8.61.

The industry rank for Omnova Solutions's Net-Net Working Capital or its related term are showing as below:

OMN's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 7.365
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Omnova Solutions Net-Net Working Capital Historical Data

The historical data trend for Omnova Solutions's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Omnova Solutions Net-Net Working Capital Chart

Omnova Solutions Annual Data
Trend Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -9.22 -8.94 -8.35 -7.88 -8.39

Omnova Solutions Quarterly Data
May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.12 -7.97 -7.81 -8.39 -8.61

Competitive Comparison of Omnova Solutions's Net-Net Working Capital

For the Specialty Chemicals subindustry, Omnova Solutions's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Omnova Solutions's Price-to-Net-Net-Working-Capital Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Omnova Solutions's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Omnova Solutions's Price-to-Net-Net-Working-Capital falls into.



Omnova Solutions Net-Net Working Capital Calculation

Omnova Solutions's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Nov. 2019 is calculated as

Net-Net Working Capital(A: Nov. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(50.9+0.75 * 90.4+0.5 * 81.5-535.2
-0-0)/44.8
=-8.39

Omnova Solutions's Net-Net Working Capital (NNWC) per share for the quarter that ended in Feb. 2020 is calculated as

Net-Net Working Capital(Q: Feb. 2020 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(40.9+0.75 * 91.2+0.5 * 82-537.2
-0-0)/44.9238
=-8.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Omnova Solutions  (NYSE:OMN) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Omnova Solutions Net-Net Working Capital Related Terms

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Omnova Solutions (Omnova Solutions) Business Description

Traded in Other Exchanges
N/A
Address
25435 Harvard Road, Beachwood, OH, USA, 44122-6201
Omnova Solutions Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on the product type. Its performance materials segment, which sells latex, lubricants, plastics, and powders used in the production of paper and packaging materials, carpets, tires, cords, synthetic latex gloves, and rubber products. The specialty chemical segment sells vinyl acrylics, styrene, plastic pigments, and polyethylene resins used in the production of textiles, oil and gas, coatings, construction materials, and personal care products. It generates a majority of revenue from the Specialty Solutions segment. Geographically, the company's majority of revenue comes from the United States.
Executives
Anne P Noonan officer: President & CEO 25435 HARVARD RD, BEACHWOOD OH 44122
Allan R Rothwell director C/O COMPASS MINERALS, 9900 WEST 109TH STREET, SUITE 600, OVERLAND PARK KS 66210
James A Mitarotonda director 888 SEVENTH AVENUE 17TH FL, NEW YORK NY 10019
Joseph M Gingo director 3550 WEST MARKET STREET, AKRON OH 44333
Michael J Merriman director C/O RC2 CORPORATION, 1111 WEST 22ND STREET, SUITE 320, OAK BROOK IL 60523
David J Dantoni director C/O COMPASS MINERALS, 9900 WEST 109TH STREET, SUITE 600, OVERLAND PARK KS 66210
Janet Plaut Giesselman director 25435 HARVARD RD., BEACHWOOD OH 44122
Larry B Porcellato director ICI PAINTS, 15885 SPRAGUE ROAD, CLEVELAND OH 44136
Paul F Desantis officer: SVP, CFO; Treasurer 25435 HARVARD RD, BEACHWOOD OH 44122-6201
Donald B. Mcmillan officer: Chief Accounting Officer 25435 HARVARD RD, BEACHWOOD OH 44122
Robert A Stefanko director 3550 W MARKET ST, AKRON OH 44333
Edward P Campbell director C/O KEYCORP, 127 PUBLIC SQUARE, CLEVELAND OH 44114
David A. Daberko director C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Gregory T Troy officer: Senior VP Human Resources C/O KAMAN CORPORATION, PO BOX 1, BLOOMFIELD CT 06002