Origin Materials (NASDAQ: ORGN) Plunge 11.11% as Valuation Gap, 28% Revenue Drop Deepen Concerns

The share price dropped to a record low today, with an intraday decline of 11.11%.

Origin Materials (NASDAQ: ORGN) has seen a 25.64% drop over four consecutive trading days, extending a broader 25% decline over the past 30 days and a 67% annual loss. The stock’s price-to-sales ratio of 2.2x, nearly double the 1.1x industry average for U.S. chemical companies, highlights valuation concerns. This premium appears unjustified given a 28% year-over-year revenue decline, erasing gains from the previous three years. The company’s stagnating top line contrasts with the chemicals sector’s projected 5.3% growth over the next 12 months.

Weak competitive positioning and a lack of analyst guidance have deepened uncertainty. With no consensus on future earnings or revenue potential, investors face a high-risk environment. The disconnect between the elevated P/S ratio and operational performance has eroded investor confidence, compounding the stock’s volatility. Without clear signs of strategic or operational improvements, the current trajectory suggests continued skepticism, potentially leading to further price declines. The absence of analyst estimates leaves the market without benchmarks, increasing the likelihood of speculative trading and mispricing.