ROIC
40%low FY2023
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ODD, ODDITY Tech Ltd.
Personal Care Products consumer brand
We Are We are a consumer tech platform that is built to transform the global beauty and wellness market.
First, the consumer migration online, where we are already a dominant direct-to-consumer platform.
Second, the consumer shift to science-backed products that truly solve their pain points, where our investment in ODDITY LABS positions us to lead in developing high performing ingredients and formulations in the market.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$810M
+25.2% YoY · 38% 4-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $810M 5-yr avg $503M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Gross margin has run about 70% and operating margin about 15% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. Inventory runs near 17% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has run high across the record (median 34%, above 15% in 3 of 3 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 11% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →North America is 82% of revenue, so this is largely a single-region business.
Revenue by geography, FY2025
- North America82%$668M
- Others14%$114M
- Israel3%$28M
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2021–2025
realized figures from each filing · older years to the left| 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| $223M | $325M | $509M | $647M | $810M | $810M | RevenueRevenue |
| 69% | 67% | 70% | 72% | 73% | 73% | Gross marginGross mgn |
| $20M | $28M | $74M | $116M | $119M | $119M | Operating incomeOp. inc. |
| 8.8% | 8.5% | 14.6% | 17.9% | 14.7% | 14.7% | Operating marginOp. mgn |
| $14M | $22M | $59M | $101M | $111M | $111M | Net incomeNet inc. |
| 25% | 25% | 26% | 21% | 18% | 18% | Effective tax rateTax rate |
| Cash flow & returns | ||||||
| $10M | $39M | $87M | $138M | $88M | $88M | Operating cash flowOp. cash |
| $4M | $4M | $9M | $10M | $11M | $11M | DepreciationDeprec. |
| ($8M) | $13M | $20M | $26M | ($34M) | ($34M) | Working capital & otherWC & other |
| $2M | $2M | $2M | $3M | $4M | $4M | CapexCapex |
| 1.1% | 0.7% | 0.4% | 0.5% | 0.5% | 0.5% | Capex / revenueCapex/rev |
| $8M | $37M | $85M | $134M | $84M | $84M | Owner earningsOwner earn. |
| 3.5% | 11.3% | 16.8% | 20.8% | 10.3% | 10.3% | Owner earnings marginOE mgn |
| $8M | $37M | $85M | $134M | $84M | $84M | Free cash flowFCF |
| 3.5% | 11.3% | 16.8% | 20.8% | 10.3% | 10.3% | Free cash flow marginFCF mgn |
| — | 34% | 22% | 40% | — | — | ROICROIC |
| — | 22% | 21% | 36% | 28% | 28% | Return on equityROE |
| — | 22% | 21% | 36% | 28% | 28% | Retained to equityRetained/eq |
| Balance sheet | ||||||
| $29M | $41M | $38M | $52M | $413M | $413M | Cash & investmentsCash+inv |
| — | $8M | $10M | $9M | $17M | $17M | ReceivablesReceiv. |
| — | $70M | $84M | $100M | $135M | $135M | InventoryInvent. |
| — | $45M | $56M | $79M | $76M | $76M | Accounts payablePayables |
| — | $33M | $38M | $30M | $76M | $76M | Operating working capitalOper. WC |
| — | $146M | $224M | $223M | $602M | $602M | Current assetsCur. assets |
| — | $90M | $109M | $125M | $115M | $115M | Current liabilitiesCur. liab. |
| — | 1.6× | 2.0× | 1.8× | 5.2× | 5.2× | Current ratioCurr. ratio |
| $16M | $16M | $65M | $65M | $65M | $65M | GoodwillGoodwill |
| — | $216M | $405M | $439M | $1.1B | $1.1B | Total assetsAssets |
| — | $99M | $283M | $282M | $396M | $396M | Shareholders’ equityEquity |
The record, charted
FY2021–2025Each measure over its full record; the current point and the worst year marked.
Gross margin
73%low FY2022
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
$84Mowner earningsvs.$111Mnet incomelow FY2021
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2021FY2025
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business reported $111M of profit but $84M of owner earnings: $27M less than the profit line, taken out by capital spending and the timing of cash.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | $111M | $101M | $59M | $22M | $14M |
| Depreciation & amortizationnon-cash charge added back | +$11M | +$10M | +$9M | +$4M | +$4M |
| Working capital & othertiming of cash in and out, other non-cash items | −$34M | +$26M | +$20M | +$13M | −$8M |
| Cash from operations | $88M | $138M | $87M | $39M | $10M |
| Capital expenditurecash put back in to keep running and to grow | −$4M | −$3M | −$2M | −$2M | −$2M |
| Owner earnings | $84M | $134M | $85M | $37M | $8M |
| Owner-earnings marginowner earnings ÷ revenue | 10% | 21% | 17% | 11% | 4% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- No meaningful interest burdenLittle or no interest expense reported
What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
- Net cashCash $402M + ST investments $11M − debt $4M
What this means
Cash and short-term investments exceed every dollar of debt by $409M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 8 + DIO 223 − DPO 125 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Not meaningful hereInvested capital ($2M) = debt $4M + equity $396M − cashIndustry peers: median 7%
What this means
Invested capital is near zero or negative, usually years of buybacks pulling equity down. ROIC explodes or flips sign and stops meaning anything. Judge this one on Owner Earnings instead.
- Solid through the cycle5-yr median margin, range 4%–21%; latest $84M = operating cash $88M − maintenance capex $4MIndustry peers: median 10%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 10% of revenue this year, a 11% median across 5 years.
- Mostly cash-backedCash from ops $88M ÷ net income $111M
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 0.37×HarvestingCapex $4M ÷ depreciation $11M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 3 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $810M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 5.24×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · $4M vs $487M WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability PassA profit every year (5-yr record) · no losses
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. . Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2021–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 5 of 5
What this means
Never lost money over the record, the earnings stability Graham insisted on.
- Operating margin 9% → 16% (2-yr avg ends)
In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.
What this means
Through the cycle the operating margin widened — about 9% early to 16% lately, median 15% — pricing power intact or improving.
- Reinvestment, incremental ROIC returns capital
What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
- Owner earnings growth +49%/yr
What this means
Owner earnings grew about 49% a year over the record.
- Worst year 2022 · 8.5% op. margin
What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
- How management talks about it Promotional
What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“Data collected from users forms a critical component of our customer acquisition funnel as it enables us to efficiently convert users to customers, informs our brand and product roadmap, and improves our machine learning algorithms to more accurately predict product matches and develop new products.…”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$602M
- Cash & short-term investments$413M
- Receivables$17M
- Inventory$135M
- Other current assets$36M
Current liabilities$115M
- Debt due within a year$4M
- Accounts payable$76M
- Other current liabilities$35M
Current ratio5.24×all current assets ÷ what's due · Graham looked for 2×
Quick ratio4.06×stricter: inventory excluded
Cash ratio3.60×strictest: cash alone against what's due
Working capital$487Mthe cushion left after near-term bills
Debt due this year vs. cash$4M due · $413M cash
covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2025 balance sheet
Deeper floors
Tangible book value$288Mequity stripped of goodwill & intangibles
Net current asset value($139M)Graham's net-net: current assets less all liabilities
Debt incl. operating leases$10M$6M of it operating leases
From the company's latest filing.
How the cash was used, 2021–2025
Over the record, the business generated $362M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.
- Reinvested$14M · 4%
- Buybacks$147M · 41%
- Retained (debt / cash)$201M · 55%
- Returned to owners$147M
42% of the owner earnings the business produced over the span, $0 as dividends and $147M as buybacks.
- Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $385M.
- Average price paid for buybacks—
Buybacks ran $147M over the span, but the filings don't tag the share count needed to deduce the average price paid.
- Net change in share count—
No continuous share count across the span.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
- Return on what it retained36%
Of the earnings it kept rather than paid out ($159M over the span), annual owner earnings (first three years vs last three) grew $58M, so each retained $1 added about 0.36 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Peers, Personal Care Products
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| EPCEdgewell Personal Care | $2.2B | 45% | 9.0% | 6% | 6% |
| ELFe.l.f. Beauty | $1.6B | 65% | 10.3% | 7% | 8% |
| IPARInter Parfums | $1.5B | 63% | 15.8% | 19% | 10% |
| ARWRArrowhead Pharmaceuticals | $829M | — | -106.8% | -51% | -77% |
| ODDODDITY Tech Ltd. | $810M | 70% | 14.6% | 34% | 11% |
| COLLCollegium Pharmaceutical Inc. | $781M | 56% | 6.8% | 44% | 31% |
| CORTCorcept Therapeutics Incorporated | $761M | 98% | 30.6% | 25% | 34% |
| OLPXOlaplex Holdings Inc. | $423M | 69% | 27.1% | 7% | 35% |
| Group median | — | 65% | 12.5% | 13% | 11% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the home-market price, not the US ADR quote. ODDITY Tech Ltd. reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what ODDITY Tech Ltd. has delivered.
$
million The share count isn’t tagged in a form this tool can read; enter it too (any quote page lists it). The rest is from the record.
Through the cycle, ODDITY Tech Ltd. earns about $92M on its 11.3% median owner-earnings margin. This year’s 10.3% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25+49%/yr
Owner-earnings growth · ’21→’25+49%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings $84M on the share count you enter above; net cash $409M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "ODDITY Tech Ltd. (ODD), the owner's record," https://ownerscorecard.com/c/ODD, data as of 2026-07-09.
Manual order: ← OBE its page in the Manual ODV →
Industry order: ← KVUE the Personal Care Products chapter OLPX →