Oil-Dri Corporation Of America

Oil-Dri Corporation of America reported record third-quarter net sales of $126.33 million, a 9% increase from the prior year, and net income rose 25% despite inflationary pressures. The board approved a two-cent increase in the quarterly cash dividend to $0.225 per share of common stock and $0.168 per share of Class B stock, representing an approximate 10% increase for both share classes, payable on August 21 to shareholders of record as of August 7. The board also authorized the repurchase of up to 500,000 shares of common stock, supplementing existing repurchase authorizations. President and CEO Daniel Jaffee expressed confidence in surpassing the previous year's net income, while noting geopolitical uncertainty and higher transportation and input costs as potential headwinds.

Oil-Dri Corporation of America shares are trading near their 52-week high of $99.03, closing at $92.84 on April 16, after surging 64.8% over the past year and significantly outperforming peers. The company's Retail & Wholesale Products Group posted record sales of $82.5 million, a 13% year-over-year increase, driven by strong cat litter demand including record crystal cat litter volumes in the first quarter of 2026. Despite operational disruptions from Winter Storm Fern, Oil-Dri achieved a 99.9% fill rate and reduced backlogs, supported by strategic infrastructure investments. However, the stock trades at a trailing 12-month EV/EBITDA multiple of 14.99X, above the industry average of 14.7X and well above Cabot Corporation's 7.32X and Koppers Holdings' 7.01X, suggesting much of its success is already priced in. Zacks Investment Research recommends investors wait for a more opportune entry point while existing shareholders can hold for long-term growth prospects.