Latest news with #OricaLimited
Yahoo
17 hours ago
- Business
- Yahoo
Investors in Orica (ASX:ORI) have seen returns of 27% over the past three years
Investors can buy low cost index fund if they want to receive the average market return. But across the board there are plenty of stocks that underperform the market. Unfortunately for shareholders, while the Orica Limited (ASX:ORI) share price is up 17% in the last three years, that falls short of the market return. In the last year the stock price gained, albeit only 3.3%. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Orica became profitable within the last three years. That would generally be considered a positive, so we'd expect the share price to be up. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Orica has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Orica's TSR for the last 3 years was 27%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! Orica shareholders gained a total return of 6.3% during the year. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand Orica better, we need to consider many other factors. Take risks, for example - Orica has 2 warning signs we think you should be aware of. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Business Insider
7 days ago
- Business
- Business Insider
Morgan Stanley Reaffirms Their Buy Rating on James Hardie (JHIUF)
Morgan Stanley analyst Andrew Scott maintained a Buy rating on James Hardie (JHIUF – Research Report) today and set a price target of A$53.00. The company's shares closed last Wednesday at $23.00. Confident Investing Starts Here: Scott covers the Basic Materials sector, focusing on stocks such as James Hardie, Orica Limited, and Incitec Pivot . According to TipRanks, Scott has an average return of 6.9% and a 54.48% success rate on recommended stocks. In addition to Morgan Stanley, James Hardie also received a Buy from Jarden's Rohan Gallagher in a report issued on May 22. However, yesterday, Macquarie maintained a Hold rating on James Hardie (Other OTC: JHIUF).
Business Insider
23-05-2025
- Business
- Business Insider
Morgans downgrades Nufarm Limited (NUFMF) to a Hold
In a report released today, Belinda Moore from Morgans downgraded Nufarm Limited (NUFMF – Research Report) to a Hold, with a price target of A$2.78. The company's shares closed last Friday at $2.68. Confident Investing Starts Here: Moore covers the Basic Materials sector, focusing on stocks such as Orica Limited, Incitec Pivot , and Nufarm Limited. According to TipRanks, Moore has an average return of 5.1% and a 53.57% success rate on recommended stocks. In addition to Morgans, Nufarm Limited also received a Hold from Morgan Stanley's Andrew Scott in a report issued today. However, on the same day, Bell Potter maintained a Buy rating on Nufarm Limited (Other OTC: NUFMF). The company has a one-year high of $3.58 and a one-year low of $1.97. Currently, Nufarm Limited has an average volume of 130.
Business Insider
13-05-2025
- Business
- Business Insider
Analysts' Top Materials Picks: Orica Limited (OCLDF), James Hardie (JHIUF)
There's a lot to be optimistic about in the Materials sector as 3 analysts just weighed in on Orica Limited (OCLDF – Research Report), James Hardie (JHIUF – Research Report) and Titan Minerals Ltd (TTTNF – Research Report) with bullish sentiments. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Orica Limited (OCLDF) In a report issued on May 9, Jakob Cakarnis from Jarden maintained a Buy rating on Orica Limited, with a price target of A$19.70. The company's shares closed last Wednesday at $9.60. According to Cakarnis is a 4-star analyst with an average return of 9.9% and a 66.1% success rate. Cakarnis covers the Industrial Goods sector, focusing on stocks such as Cleanaway Waste Management, Emeco Holdings Limited, and Qantas Airways Limited. Currently, the analyst consensus on Orica Limited is a Strong Buy with an average price target of $13.63, which is a 42.0% upside from current levels. In a report issued on May 7, Citi also upgraded the stock to Buy with a A$18.90 price target. James Hardie (JHIUF) Jarden analyst Rohan Gallagher maintained a Buy rating on James Hardie on May 8 and set a price target of A$44.00. The company's shares closed last Friday at $22.01. According to Gallagher is a 4-star analyst with an average return of 7.5% and a 56.7% success rate. Gallagher covers the Basic Materials sector, focusing on stocks such as Bluescope Steel, Brickworks Ltd, and Sims. James Hardie has an analyst consensus of Moderate Buy, with a price target consensus of $32.93, which is a 49.6% upside from current levels. In a report issued on May 7, Morgan Stanley also maintained a Buy rating on the stock with a A$55.00 price target. Titan Minerals Ltd (TTTNF) In a report issued on May 8, Paul Howard CFA from Canaccord Genuity maintained a Buy rating on Titan Minerals Ltd, with a price target of A$1.18. The company's shares closed last Tuesday at $0.96. According to CFA is a 1-star analyst with an average return of -3.1% and a 47.4% success rate. CFA covers the Basic Materials sector, focusing on stocks such as Adriatic Metals Shs Chess Deposit Interests Repr 1 Sh, West African Resources Ltd, and Emerald Resources NL.
Yahoo
10-05-2025
- Business
- Yahoo
Orica (ASX:ORI) Has Announced A Dividend Of A$0.25
Orica Limited's (ASX:ORI) investors are due to receive a payment of A$0.25 per share on 2nd of July. This takes the annual payment to 2.6% of the current stock price, which unfortunately is below what the industry is paying. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If it is predictable over a long period, even low dividend yields can be attractive. Prior to this announcement, the company was paying out 263% of what it was earning, however the dividend was quite comfortably covered by free cash flows at a cash payout ratio of only 50%. Given that the dividend is a cash outflow, we think that cash is more important than accounting measures of profit when assessing the dividend, so this is a mitigating factor. Looking forward, earnings per share is forecast to rise exponentially over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 32%, which would make us comfortable with the dividend's sustainability, despite the levels currently being elevated. See our latest analysis for Orica The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the dividend has gone from A$0.95 total annually to A$0.47. Doing the maths, this is a decline of about 6.8% per year. A company that decreases its dividend over time generally isn't what we are looking for. With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing. Orica's EPS has fallen by approximately 27% per year during the past five years. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. In summary, while it's always good to see the dividend being raised, we don't think Orica's payments are rock solid. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 2 warning signs for Orica that investors should take into consideration. Is Orica not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
