Is Oil-Dri Corp. of America overvalued or undervalued?

As of 30 June 2025, the valuation grade for Oil-Dri Corp. of America has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 21, an EV to EBITDA ratio of 11.20, and a Price to Book Value of 3.91. In comparison, its peer LSB Industries, Inc. has a P/E ratio of -18.11, highlighting Oil-Dri's relative strength in valuation metrics.
The company's return performance has significantly outpaced the S&P 500, with a year-to-date return of 57.26% compared to the index's 12.22%, and a one-year return of 103.12% versus 17.14%. This strong performance reinforces the notion that Oil-Dri Corp. is positioned favorably in the market.