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Oil-Dri of AmericaODC -2.49%65 Operating Margin % is 13.53% as of Apr. 2026, which is 128% above its 10-year median of 5.93. GuruFocus rates ODC with a GF Score™ of 65/100 and a GF Value™ of $44.32 (Significantly Overvalued). Among 1,585 Chemicals companies, Oil-Dri of America ranks better than 76.53% on this metric.
Oil-Dri of America (NYSE:ODC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Oil-Dri of America Operating Margin % Related Terms
Oil-Dri of America Operating Margin % Historical Data
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The historical data trend for Oil-Dri of America's Operating Margin % 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.
ODC vs ECVT, STDN, SCL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Oil-Dri of America's Operating Margin %, along with its competitors' market caps and Operating Margin % 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.
Oil-Dri of America Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Oil-Dri of America's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Oil-Dri of America's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Oil-Dri of America's Operating Margin % for the fiscal year that ended in Jul. 2025 is calculated as
* 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.
Oil-Dri of America (ODC) has a Operating Margin % of 13.53% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Oil-Dri of America and its competitors. This is 128% above median its historical median of 5.93. Over the past decade, Oil-Dri of America's Operating Margin % has ranged from 3.00 to 14.05. According to the industry distribution chart, Oil-Dri of America ranks #372 out of 1585 companies in the Chemicals industry, placing it in the top 23.5%.
Is Oil-Dri of America's Operating Margin % too high?
Oil-Dri of America's current Operating Margin % of 13.53% is 128% above median its 10-year median of 5.93. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 14.05. The Chemicals industry median Operating Margin % is 6.72. Oil-Dri of America's value of 13.53% is 101.3% above this industry median. Based on the distribution chart, Oil-Dri of America ranks #372 out of 1585 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Oil-Dri of America has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Oil-Dri of America's Operating Margin % compare to ECVT and STDN?
According to the Chemicals industry distribution chart, Oil-Dri of America ranks #372 out of 1585 companies for Operating Margin %. This places Oil-Dri of America in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.72. Oil-Dri of America's value of 13.53% is 101.3% above this benchmark. Historically, Oil-Dri of America's own Operating Margin % has ranged from 3.00 to 14.05 over the past decade. While the company's 10-year median is 5.93 vs. the industry median of 6.72, Oil-Dri of America has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.72, based on 1,585 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Oil-Dri of America's current Operating Margin % of 13.53% is 101.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Oil-Dri of America and its competitors. For the Chemicals industry, the median Operating Margin % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oil-Dri of America's current Operating Margin % is 13.53%, which is 128% above median its own 10-year median of 5.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oil-Dri of America stock overvalued right now?
Based on GuruFocus' analysis, Oil-Dri of America (ODC) is currently considered Significantly Overvalued. The stock's GF Value™ is $44.32, compared to a current price of $89.94 — trading 102.9% above its estimated fair value. The current Operating Margin % is 13.53%, which is 128% above median its 10-year median of 5.93 and 101.3% above the Chemicals industry median of 6.72. Oil-Dri of America's overall GF Score™ is 65/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Oil-Dri of America (ODC), the current Operating Margin % is 13.53% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Oil-Dri of America (ODC) Overvalued in 2026?
Based on GuruFocus' analysis, Oil-Dri of America stock appears to be overvalued.
The current stock price of $89.94 is trading 102.9% above its estimated GF Value™ of $44.32.
GuruFocus considers Oil-Dri of America to be Significantly Overvalued.
Key valuation signals for ODC:
Operating Margin %: 13.53% (128% above median its 10-year median of 5.93)
GF Value™: $44.32 vs. price of $89.94 (102.9% above fair value)
Industry Position: 101.3% above the Chemicals median (#372 of 1585)
No single metric tells the full story. See the ODC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oil-Dri Corp of America develops, manufactures, and markets sorbent products made predominantly from clay. Its absorbent offerings, which draw liquid up, include cat litter, floor products, toxin control substances for livestock, and agricultural chemical carriers. The company has two segments based on the different characteristics of two primary customer groups, namely the Retail and Wholesale Products Group, which derives maximum revenue, and the Business-to-Business Products Group. The company's products are sold under various brands such as Cat's Pride, Jonny Cat, Amlan, Agsorb, Verge, Pure-Flo, and Ultra-Clear.
65GF Score
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