Investors should take notice of NYSE:OLN—it offers a great deal for the fundamentals it presents.

Last update: May 24, 2024

Our stock screening tool has pinpointed OLIN CORP (NYSE:OLN) as an undervalued stock. NYSE:OLN maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Valuation for NYSE:OLN

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:OLN, the assigned 7 reflects its valuation:

OLN's Price/Earnings ratio is a bit cheaper when compared to the industry. OLN is cheaper than 64.29% of the companies in the same industry.
OLN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
The Price/Forward Earnings ratio is 8.67, which indicates a very decent valuation of OLN.
Based on the Price/Forward Earnings ratio, OLN is valued cheaper than 86.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.81. OLN is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, OLN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OLN is valued cheaper than 90.48% of the companies in the same industry.
OLN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as OLN's earnings are expected to grow with 23.82% in the coming years.

A Closer Look at Profitability for NYSE:OLN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:OLN scores a 7 out of 10:

OLN has a Return On Assets of 4.64%. This is in the better half of the industry: OLN outperforms 72.62% of its industry peers.
OLN has a Return On Equity of 16.27%. This is in the better half of the industry: OLN outperforms 78.57% of its industry peers.
OLN's Return On Invested Capital of 8.29% is fine compared to the rest of the industry. OLN outperforms 76.19% of its industry peers.
OLN had an Average Return On Invested Capital over the past 3 years of 18.05%. This is significantly above the industry average of 7.01%.
The last Return On Invested Capital (8.29%) for OLN is well below the 3 year average (18.05%), which needs to be investigated, but indicates that OLN had better years and this may not be a problem.
OLN's Profit Margin of 5.33% is fine compared to the rest of the industry. OLN outperforms 63.10% of its industry peers.
In the last couple of years the Profit Margin of OLN has grown nicely.
OLN's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of OLN has grown nicely.

Understanding NYSE:OLN's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:OLN has received a 5 out of 10:

The Altman-Z score of OLN (2.41) is better than 66.67% of its industry peers.
The Debt to FCF ratio of OLN is 3.46, which is a good value as it means it would take OLN, 3.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.46, OLN belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.

How We Gauge Growth for NYSE:OLN

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:OLN, the assigned 4 reflects its growth potential:

Measured over the past years, OLN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.66% on average per year.
The Earnings Per Share is expected to grow by 23.82% on average over the next years. This is a very strong growth
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of OLN

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.