Rajiv Bhatia
Value, growth at reasonable price

Let Oil-Dri Absorb Your Cash

Investment Thesis

Oil-Dri Corporation of America (NYSE:ODC) is a company with consistent profitability, a low price to sales ratio, no net debt, low management turnover, and a history of dividend increases. The company is shifting from private label products to branded products and gross margins have been increasing. Based on a FCFE with modest assumptions, I believe shares have 30% upside with low downside risk.


Oil-Dri is a manufacturer and marketer of sorbent products including cat litter. The firm operates surface mines in 7 states with proven reserves adequate to supply more than 40 years of current operations. Oil-Dri has an estimated branded 8% market share for cat litter which it sells under the Cat's Pride and...

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