OLIN CORP (OLN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OLN - US6806652052 - Common Stock
23.86 USD
+1.3 (+5.76%)
24 USD
+0.14 (+0.59%)
OLN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. There are concerns on the financial health of OLN while its profitability can be described as average. OLN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OLN was profitable.
OLN had a positive operating cash flow in the past year.
Of the past 5 years OLN 4 years were profitable.
OLN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.71%, OLN is in line with its industry, outperforming 56.63% of the companies in the same industry.
OLN has a Return On Equity (2.73%) which is comparable to the rest of the industry.
The Return On Invested Capital of OLN (3.27%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for OLN is significantly above the industry average of 6.10%.
The 3 year average ROIC (11.96%) for OLN is well above the current ROIC(3.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.73% | ||
| ROIC | 3.27% |
ROA(3y)7.96%
ROA(5y)5.48%
ROE(3y)26.05%
ROE(5y)12.04%
ROIC(3y)11.96%
ROIC(5y)N/A
1.3 Margins
OLN has a Profit Margin (0.79%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OLN has declined.
OLN has a Operating Margin of 3.83%. This is in the lower half of the industry: OLN underperforms 62.65% of its industry peers.
In the last couple of years the Operating Margin of OLN has grown nicely.
With a Gross Margin value of 9.64%, OLN is not doing good in the industry: 81.93% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of OLN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.83% | ||
| PM (TTM) | 0.79% | ||
| GM | 9.64% |
OM growth 3Y-36.05%
OM growth 5Y5.82%
PM growth 3Y-51.5%
PM growth 5YN/A
GM growth 3Y-23.01%
GM growth 5Y1.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OLN is still creating some value.
The number of shares outstanding for OLN has been reduced compared to 1 year ago.
Compared to 5 years ago, OLN has less shares outstanding
OLN has a worse debt/assets ratio than last year.
2.2 Solvency
OLN has an Altman-Z score of 1.85. This is not the best score and indicates that OLN is in the grey zone with still only limited risk for bankruptcy at the moment.
OLN has a Altman-Z score (1.85) which is comparable to the rest of the industry.
OLN has a debt to FCF ratio of 37.32. This is a negative value and a sign of low solvency as OLN would need 37.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 37.32, OLN is in line with its industry, outperforming 46.99% of the companies in the same industry.
OLN has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
OLN has a Debt to Equity ratio of 1.52. This is in the lower half of the industry: OLN underperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 37.32 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.31
WACC10.4%
2.3 Liquidity
A Current Ratio of 1.56 indicates that OLN should not have too much problems paying its short term obligations.
OLN's Current ratio of 1.56 is on the low side compared to the rest of the industry. OLN is outperformed by 68.67% of its industry peers.
OLN has a Quick Ratio of 1.56. This is a bad value and indicates that OLN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.89, OLN is doing worse than 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
OLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.20%.
The Earnings Per Share has been growing by 9.01% on average over the past years. This is quite good.
OLN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
The Revenue has been growing slightly by 1.37% on average over the past years.
EPS 1Y (TTM)-43.2%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%366.67%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%7.78%
3.2 Future
The Earnings Per Share is expected to grow by 6.00% on average over the next years.
OLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.40% yearly.
EPS Next Y-87.7%
EPS Next 2Y-20.63%
EPS Next 3Y6%
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y2.99%
Revenue Next 3Y3.19%
Revenue Next 5Y5.4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.58, the valuation of OLN can be described as expensive.
OLN's Price/Earnings is on the same level as the industry average.
OLN is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.38, which means the current valuation is very expensive for OLN.
OLN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. OLN is more expensive than 62.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OLN to the average of the S&P500 Index (23.92), we can say OLN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.58 | ||
| Fwd PE | 32.38 |
4.2 Price Multiples
80.72% of the companies in the same industry are more expensive than OLN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as OLN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.95 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.84
EPS Next 2Y-20.63%
EPS Next 3Y6%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 3.55%.
Compared to an average industry Dividend Yield of 2.34, OLN pays a better dividend. On top of this OLN pays more dividend than 83.13% of the companies listed in the same industry.
OLN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of OLN decreases each year by -0.05%.
OLN has been paying a dividend for at least 10 years, so it has a reliable track record.
OLN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.05%
Div Incr Years0
Div Non Decr Years24
5.3 Sustainability
OLN pays out 171.83% of its income as dividend. This is not a sustainable payout ratio.
DP171.83%
EPS Next 2Y-20.63%
EPS Next 3Y6%
23.86
+1.3 (+5.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.04%
Inst Owner Change0.26%
Ins Owners0.43%
Ins Owner Change1%
Market Cap2.72B
Revenue(TTM)6.79B
Net Income(TTM)53.60M
Analysts66.67
Price Target24 (0.59%)
Short Float %8.87%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP171.83%
Div Incr Years0
Div Non Decr Years24
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)328.58%
Min EPS beat(2)275.76%
Max EPS beat(2)381.39%
EPS beat(4)4
Avg EPS beat(4)366.96%
Min EPS beat(4)159.11%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)124.21%
EPS beat(12)10
Avg EPS beat(12)86.55%
EPS beat(16)13
Avg EPS beat(16)65.27%
Revenue beat(2)1
Avg Revenue beat(2)1.38%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)4.97%
Revenue beat(4)3
Avg Revenue beat(4)3.18%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)6.79%
Revenue beat(8)4
Avg Revenue beat(8)1.4%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)6
Avg Revenue beat(16)-1.41%
PT rev (1m)-1.12%
PT rev (3m)-1.67%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-631.18%
EPS NY rev (1m)23.11%
EPS NY rev (3m)14.95%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-5.61%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.58 | ||
| Fwd PE | 32.38 | ||
| P/S | 0.4 | ||
| P/FCF | 33.95 | ||
| P/OCF | 9.24 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.1 |
EPS(TTM)0.69
EY2.89%
EPS(NY)0.74
Fwd EY3.09%
FCF(TTM)0.7
FCFY2.95%
OCF(TTM)2.58
OCFY10.82%
SpS59.47
BVpS17.19
TBVpS-5.55
PEG (NY)N/A
PEG (5Y)3.84
Graham Number16.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.73% | ||
| ROCE | 4.23% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 5.9% | ||
| OM | 3.83% | ||
| PM (TTM) | 0.79% | ||
| GM | 9.64% | ||
| FCFM | 1.18% |
ROA(3y)7.96%
ROA(5y)5.48%
ROE(3y)26.05%
ROE(5y)12.04%
ROIC(3y)11.96%
ROIC(5y)N/A
ROICexc(3y)12.32%
ROICexc(5y)N/A
ROICexgc(3y)22.2%
ROICexgc(5y)N/A
ROCE(3y)15.44%
ROCE(5y)N/A
ROICexgc growth 3Y-32.74%
ROICexgc growth 5Y19.54%
ROICexc growth 3Y-39.51%
ROICexc growth 5Y14.17%
OM growth 3Y-36.05%
OM growth 5Y5.82%
PM growth 3Y-51.5%
PM growth 5YN/A
GM growth 3Y-23.01%
GM growth 5Y1.49%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 37.32 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 40.85% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 1.61 | ||
| Cash Conversion | 37.55% | ||
| Profit Quality | 149.63% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.85 |
F-Score6
WACC10.4%
ROIC/WACC0.31
Cap/Depr(3y)40.49%
Cap/Depr(5y)41.7%
Cap/Sales(3y)2.99%
Cap/Sales(5y)3.28%
Profit Quality(3y)190.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.2%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%366.67%
EPS Next Y-87.7%
EPS Next 2Y-20.63%
EPS Next 3Y6%
EPS Next 5YN/A
Revenue 1Y (TTM)4.68%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%7.78%
Revenue Next Year4.58%
Revenue Next 2Y2.99%
Revenue Next 3Y3.19%
Revenue Next 5Y5.4%
EBIT growth 1Y-30.39%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year119.12%
EBIT Next 3Y41.94%
EBIT Next 5Y37.4%
FCF growth 1Y-88.99%
FCF growth 3Y-41.52%
FCF growth 5Y5.87%
OCF growth 1Y-69.62%
OCF growth 3Y-33.88%
OCF growth 5Y-4%
OLIN CORP / OLN FAQ
What is the fundamental rating for OLN stock?
ChartMill assigns a fundamental rating of 4 / 10 to OLN.
What is the valuation status of OLIN CORP (OLN) stock?
ChartMill assigns a valuation rating of 2 / 10 to OLIN CORP (OLN). This can be considered as Overvalued.
What is the profitability of OLN stock?
OLIN CORP (OLN) has a profitability rating of 5 / 10.
What are the PE and PB ratios of OLIN CORP (OLN) stock?
The Price/Earnings (PE) ratio for OLIN CORP (OLN) is 34.58 and the Price/Book (PB) ratio is 1.39.
How financially healthy is OLIN CORP?
The financial health rating of OLIN CORP (OLN) is 3 / 10.