Is Orion Engineered Carbons S.A. (OEC) an Attractive Investment Opportunity?
Choice Equities Capital Management, a hedge fund manager, released its third-quarter investor letter recently. You can view it here. In the third quarter, the fund returned -1.7% on a net basis compared to -2.2% loss for the Russell 2000 Index and -4.9% loss for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Choice Equities highlighted stocks like Orion Engineered Carbons S.A. (NYSE:OEC) in the Q3 2022 investor letter. Headquartered in Senningerberg, Luxembourg, Orion Engineered Carbons S.A. (NYSE:OEC) is a carbon black products distributor. On November 30, 2022, Orion Engineered Carbons S.A. (NYSE:OEC) stock closed at $18.78 per share. One-month return of Orion Engineered Carbons S.A. (NYSE:OEC) was 22.35%, and its shares gained 4.86% of their value over the last 52 weeks. Orion Engineered Carbons S.A. (NYSE:OEC) has a market capitalization of $1.142 billion.
Choice Equities made the following comment about Orion Engineered Carbons S.A. (NYSE:OEC) in its Q3 2022 investor letter:
"Orion Engineered Carbons S.A. (NYSE:OEC) – Shares of Orion Engineered Carbons remain attractive at recent market prices. Its rubber black segment, which accounts for 45% of the firm’s total EBITDA continues to benefit from a market in structural supply deficit. OEC’s specialty business, which provides conductive materials for EV batteries and represents 55% of total EBITDA at higher margins, is expected to see significant growth in 2023 as three new plants in Italy, China, and Texas are projected to start producing at full capacity. As we have experienced with other holdings, the company continues to trade at a historically low valuation in comparison to its past trading range, most recently trading at ~6x PE and ~5x EBITDA, a valuation which appears quite low relative to its likely future cash flows."
Photo by Fahad Bin Kamal Anik on Unsplash
Orion Engineered Carbons S.A. (NYSE:OEC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Orion Engineered Carbons S.A. (NYSE:OEC) at the end of the third quarter which was 24 in the previous quarter.
We discussed Orion Engineered Carbons S.A. (NYSE:OEC) in another article and shared Choice Equities’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
