OLIN CORP (OLN) Stock Fundamental Analysis
NYSE:OLN - New York Stock Exchange, Inc. - US6806652052 - Common Stock
OLN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and the financial health of OLN get a neutral evaluation. Nothing too spectacular is happening here. OLN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
OLN had positive earnings in the past year.
OLN had a positive operating cash flow in the past year.
In multiple years OLN reported negative net income over the last 5 years.
In the past 5 years OLN always reported a positive cash flow from operatings.
1.2 Ratios
OLN has a Return On Assets (2.01%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.33%, OLN is in line with its industry, outperforming 59.04% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.90%, OLN is in line with its industry, outperforming 56.63% 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 6.57%.
The last Return On Invested Capital (4.90%) 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 7.33% | ||
| ROIC | 4.9% |
ROA(3y)12.56%
ROA(5y)5.17%
ROE(3y)40.56%
ROE(5y)10.87%
ROIC(3y)18.05%
ROIC(5y)N/A
1.3 Margins
OLN has a Profit Margin (2.33%) which is in line with its industry peers.
In the last couple of years the Profit Margin of OLN has grown nicely.
OLN has a worse Operating Margin (5.76%) than 61.45% of its industry peers.
OLN's Operating Margin has improved in the last couple of years.
The Gross Margin of OLN (12.08%) is worse than 78.31% of its industry peers.
OLN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.76% | ||
| PM (TTM) | 2.33% | ||
| GM | 12.08% |
OM growth 3YN/A
OM growth 5Y6.02%
PM growth 3YN/A
PM growth 5Y7.37%
GM growth 3Y37.75%
GM growth 5Y3.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OLN is creating value.
Compared to 1 year ago, OLN has less shares outstanding
OLN has less shares outstanding than it did 5 years ago.
OLN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.01 indicates that OLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.01, OLN perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
The Debt to FCF ratio of OLN is 5.06, which is a neutral value as it means it would take OLN, 5.06 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.06, OLN is doing good in the industry, outperforming 69.88% of the companies in the same industry.
OLN has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
OLN has a Debt to Equity ratio of 1.34. This is amonst the worse of the industry: OLN underperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.56
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.40 indicates that OLN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, OLN is not doing good in the industry: 73.49% of the companies in the same industry are doing better.
OLN has a Quick Ratio of 1.40. This is a bad value and indicates that OLN is not financially healthy enough and could expect problems in meeting its short term obligations.
OLN has a worse Quick ratio (0.82) than 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for OLN have decreased strongly by -75.50% in the last year.
OLN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.66% yearly.
The Revenue has decreased by -9.90% in the past year.
The Revenue has been decreasing by -0.33% on average over the past years.
EPS 1Y (TTM)-75.5%
EPS 3YN/A
EPS 5Y17.66%
EPS Q2Q%-116.48%
Revenue 1Y (TTM)-9.9%
Revenue growth 3Y5.87%
Revenue growth 5Y-0.33%
Sales Q2Q%-4.9%
3.2 Future
The Earnings Per Share is expected to grow by 7.70% on average over the next years.
Based on estimates for the next years, OLN will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
EPS Next Y-73.4%
EPS Next 2Y-14.57%
EPS Next 3Y7.7%
EPS Next 5YN/A
Revenue Next Year-4.32%
Revenue Next 2Y0.66%
Revenue Next 3Y2.29%
Revenue Next 5Y2.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 27.52.
The rest of the industry has a similar Price/Earnings ratio as OLN.
OLN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.37, the valuation of OLN can be described as correct.
72.29% of the companies in the same industry are more expensive than OLN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.37, OLN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
OLN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OLN is cheaper than 83.13% of the companies in the same industry.
92.77% of the companies in the same industry are more expensive than OLN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.86 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
OLN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y-14.57%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 2.39%.
OLN's Dividend Yield is a higher than the industry average which is at 3.26.
OLN's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of OLN decreases each year by -0.10%.
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)-0.1%
Div Incr Years0
Div Non Decr Years24
5.3 Sustainability
OLN pays out 63.20% of its income as dividend. This is not a sustainable payout ratio.
DP63.2%
EPS Next 2Y-14.57%
EPS Next 3Y7.7%
OLIN CORP
NYSE:OLN (1/22/2025, 8:04:00 PM)
After market: 33.57 0 (0%)33.57
-0.84 (-2.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.1%
Inst Owner Change0.02%
Ins Owners0.29%
Ins Owner Change0%
Market Cap3.91B
Analysts69.57
Price Target47.2 (40.6%)
Short Float %3.39%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.1%
DP63.2%
Div Incr Years0
Div Non Decr Years24
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-257.01%
Min EPS beat(2)-508.23%
Max EPS beat(2)-5.79%
EPS beat(4)2
Avg EPS beat(4)-118.53%
Min EPS beat(4)-508.23%
Max EPS beat(4)22.86%
EPS beat(8)6
Avg EPS beat(8)-53.65%
EPS beat(12)9
Avg EPS beat(12)-35.3%
EPS beat(16)13
Avg EPS beat(16)-20.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-0.03%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)5.12%
Revenue beat(8)1
Avg Revenue beat(8)-4.09%
Revenue beat(12)3
Avg Revenue beat(12)-2.94%
Revenue beat(16)5
Avg Revenue beat(16)-1.35%
PT rev (1m)-3.59%
PT rev (3m)-8.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-96.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-42.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.49%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 12.37 | ||
| P/S | 0.6 | ||
| P/FCF | 6.86 | ||
| P/OCF | 5.03 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.5 |
EPS(TTM)1.22
EY3.63%
EPS(NY)2.71
Fwd EY8.09%
FCF(TTM)4.9
FCFY14.59%
OCF(TTM)6.67
OCFY19.88%
SpS55.6
BVpS17.64
TBVpS-5.6
PEG (NY)N/A
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 7.33% | ||
| ROCE | 6.13% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 9.47% | ||
| OM | 5.76% | ||
| PM (TTM) | 2.33% | ||
| GM | 12.08% | ||
| FCFM | 8.81% |
ROA(3y)12.56%
ROA(5y)5.17%
ROE(3y)40.56%
ROE(5y)10.87%
ROIC(3y)18.05%
ROIC(5y)N/A
ROICexc(3y)18.57%
ROICexc(5y)N/A
ROICexgc(3y)30.02%
ROICexgc(5y)N/A
ROCE(3y)22.57%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.26%
ROICexc growth 3YN/A
ROICexc growth 5Y11.02%
OM growth 3YN/A
OM growth 5Y6.02%
PM growth 3YN/A
PM growth 5Y7.37%
GM growth 3Y37.75%
GM growth 5Y3.6%
F-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 40.03% | ||
| Cap/Sales | 3.19% | ||
| Interest Coverage | 2.02 | ||
| Cash Conversion | 87.37% | ||
| Profit Quality | 378.65% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.01 |
F-Score4
WACC8.68%
ROIC/WACC0.56
Cap/Depr(3y)39.41%
Cap/Depr(5y)47.08%
Cap/Sales(3y)2.74%
Cap/Sales(5y)3.95%
Profit Quality(3y)135.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.5%
EPS 3YN/A
EPS 5Y17.66%
EPS Q2Q%-116.48%
EPS Next Y-73.4%
EPS Next 2Y-14.57%
EPS Next 3Y7.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.9%
Revenue growth 3Y5.87%
Revenue growth 5Y-0.33%
Sales Q2Q%-4.9%
Revenue Next Year-4.32%
Revenue Next 2Y0.66%
Revenue Next 3Y2.29%
Revenue Next 5Y2.91%
EBIT growth 1Y-62.45%
EBIT growth 3YN/A
EBIT growth 5Y5.67%
EBIT Next Year13.84%
EBIT Next 3Y19.85%
EBIT Next 5Y15.93%
FCF growth 1Y-67.66%
FCF growth 3Y83.49%
FCF growth 5Y7.16%
OCF growth 1Y-61.08%
OCF growth 3Y32.55%
OCF growth 5Y1.42%