Orica Limited (ORI.AX) stock analysis

In our weekly check, Orica Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3.

About Orica Limited

Orica Limited is a Basic Materials company (Chemicals - Specialty) based in Australia, listed on ASX as ORI.AX.

What our checks show for ORI.AX

Red flags

• The net margin is only 2%: little room if costs rise.
• The dividend takes 234% of profit: little cushion if profit falls.
• The stock has fallen as much as 66% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 3.3 times: a weak year could make the payments hard.
• Analysts expect only about 2% a year of growth in revenue.
• Revenue grew only 4.7% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 5.3 points over 5 years, to 2%.
• The gross margin is 54.5% and has risen by 1.5 points: pricing power is holding.
• Operating cash flow is 5.85x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 63.8% a year over the next years.
• Analysts expect the net margin to improve by 6.1 points from today's 2%.
• Earnings per share grew 34.4% a year over the last 3 years.

Next earnings report: 2026-11-12

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Questions

What grade does Orica Limited (ORI.AX) have?

In our weekly check, Orica Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ORI.AX stock?

This week's biggest flags for Orica Limited: Thin margins, Dividend stretched, Deep past fall. In total 7 of 25 checks show a warning or a red flag.

What does Orica Limited do?

Orica Limited is a Basic Materials company (Chemicals - Specialty) based in Australia, listed on ASX as ORI.AX.

When does Orica Limited report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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