OLIN CORP (OLN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OLN - US6806652052 - Common Stock
20.77 USD
+0.47 (+2.32%)
21 USD
+0.23 (+1.11%)
OLN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 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 valied quite expensively at the moment, while 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.
OLN had positive earnings in 4 of the past 5 years.
OLN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OLN has a Return On Assets of 0.71%. This is comparable to the rest of the industry: OLN outperforms 55.56% of its industry peers.
The Return On Equity of OLN (2.73%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.27%, OLN is in line with its industry, outperforming 46.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OLN is significantly above the industry average of 6.07%.
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
The Profit Margin of OLN (0.79%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OLN has declined.
OLN's Operating Margin of 3.83% is on the low side compared to the rest of the industry. OLN is outperformed by 64.20% of its industry peers.
In the last couple of years the Operating Margin of OLN has grown nicely.
Looking at the Gross Margin, with a value of 9.64%, OLN is doing worse than 82.72% of the companies in the same industry.
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
OLN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
OLN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for OLN has been reduced compared to 5 years ago.
OLN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.81 indicates that OLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of OLN (1.81) 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.
With a Debt to FCF ratio value of 37.32, OLN perfoms like the industry average, outperforming 45.68% of the companies in the same industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that OLN has dependencies on debt financing.
OLN has a worse Debt to Equity ratio (1.52) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 37.32 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.38
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.56 indicates that OLN should not have too much problems paying its short term obligations.
OLN has a worse Current ratio (1.56) than 71.60% 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.
With a Quick ratio value of 0.89, OLN is not doing good in the industry: 71.60% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 4.68% in the past year.
Measured over the past years, OLN shows a small growth in Revenue. The Revenue has been growing by 1.37% on average per year.
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
OLN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.51% yearly.
The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y-86.82%
EPS Next 2Y-16.26%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue Next Year5.09%
Revenue Next 2Y3.53%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OLN is valuated quite expensively with a Price/Earnings ratio of 30.10.
OLN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. OLN is around the same levels.
A Price/Forward Earnings ratio of 25.32 indicates a quite expensive valuation of OLN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OLN indicates a slightly more expensive valuation: OLN is more expensive than 60.49% of the companies listed in the same industry.
OLN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.1 | ||
| Fwd PE | 25.32 |
4.2 Price Multiples
OLN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OLN is cheaper than 82.72% of the companies in the same industry.
OLN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.68 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.34
EPS Next 2Y-16.26%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 4.33%, which is a nice return.
Compared to an average industry Dividend Yield of 4.16, OLN pays a better dividend. On top of this OLN pays more dividend than 81.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, OLN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
5.2 History
The dividend of OLN decreases each year by -0.05%.
OLN has paid a dividend for at least 10 years, which is 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
171.83% of the earnings are spent on dividend by OLN. This is not a sustainable payout ratio.
DP171.83%
EPS Next 2Y-16.26%
EPS Next 3Y11.51%
20.77
+0.47 (+2.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change1.95%
Ins Owners0.44%
Ins Owner Change1.1%
Market Cap2.38B
Revenue(TTM)6.79B
Net Income(TTM)53.60M
Analysts66.67
Price Target24.28 (16.9%)
Short Float %7.37%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP171.83%
Div Incr Years0
Div Non Decr Years24
Ex-Date
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)-0.56%
PT rev (3m)0%
EPS NQ rev (1m)-298.32%
EPS NQ rev (3m)-1937.12%
EPS NY rev (1m)83.68%
EPS NY rev (3m)-4.59%
Revenue NQ rev (1m)-3.83%
Revenue NQ rev (3m)-4.84%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.1 | ||
| Fwd PE | 25.32 | ||
| P/S | 0.35 | ||
| P/FCF | 29.68 | ||
| P/OCF | 8.08 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.67 |
EPS(TTM)0.69
EY3.32%
EPS(NY)0.82
Fwd EY3.95%
FCF(TTM)0.7
FCFY3.37%
OCF(TTM)2.57
OCFY12.38%
SpS59.22
BVpS17.12
TBVpS-5.53
PEG (NY)N/A
PEG (5Y)3.34
Graham Number16.3
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 | 1.81 |
F-Score6
WACC8.51%
ROIC/WACC0.38
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-86.82%
EPS Next 2Y-16.26%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue 1Y (TTM)4.68%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%7.78%
Revenue Next Year5.09%
Revenue Next 2Y3.53%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
EBIT growth 1Y-30.39%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year124.27%
EBIT Next 3Y46.84%
EBIT Next 5YN/A
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.
Can you provide the valuation status for OLIN CORP?
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.
How financially healthy is OLIN CORP?
The financial health rating of OLIN CORP (OLN) is 2 / 10.
Can you provide the dividend sustainability for OLN stock?
The dividend rating of OLIN CORP (OLN) is 6 / 10 and the dividend payout ratio is 171.83%.