Stock Analysis: Orion Oyj

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Orion Oyj (ORINY) is a globally operating Finnish pharmaceutical company that develops, manufactures, and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients.

The company primarily focuses on treatments for central nervous system disorders, oncology, and respiratory diseases.

Orion's customers include specialists and general practitioners, veterinarians, pharmacies, hospitals, and laboratories.

Orion mainly serves Finland but also has a presence in other European countries and North America

The company was founded in 1917 and is headquartered in Espoo, Finland.

Three key data points gauge Orion Oyj, or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

ORINY Price

Over the past year, Orion’s share price rose 5.4% from $20.11 to $21.20 as of Tuesday’s market close.

If Orion’s stock trades in the range of $15.00 to $30.00 this next year, its recent $21.20 share price might rise to $21.70 by next year. Of course, Orion’s price could drop about the same $0.50 amount, or more.

My upside estimate of $0.50, however, is not supported by analysts tracking the stock for brokers, but price history shows that’s the average Orion annual price increase per share over the last 9 years.
 

ORINY Dividend

Orion Oyj’s most recent $0.87 annual dividend, paid April 17th to shareholders of record March 23rd, throws a yield of 4.1% as of Tuesday’s closing price.
 

ORINY Returns

Adding the $0.87 anticipated annual dividend to Orion’s estimated $0.50 price upside reveals a $1.37 potential gross gain per share for the coming year.

At Tuesday’s $21.20 closing price, a little over $1000 would buy 47 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.21 per share.

Subtracting that maybe $0.21 brokerage cost from my estimated $1.37 gross gain per share makes a net gain amounting to $1.17 X 47 shares = $54.99 for about a 5.5% net gain.

This may be the time to pounce on Orion Oyj. But beware, while its dividend is variable, its price is relatively flat and is lately priced $10.59 below the stock’s all-time high of $31.79 posted back on or about June 13, 2017.

The foregoing article is based on past history of Orion Oyj. The only accurate measure of future performance is from active investment in the company.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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