OLIN CORP (OLN) Stock Fundamental Analysis
NYSE:OLN - New York Stock Exchange, Inc. - US6806652052 - Common Stock - Currency: USD
Taking everything into account, OLN scores 4 out of 10 in our fundamental rating. OLN was compared to 85 industry peers in the Chemicals industry. While OLN is still in line with the averages on profitability rating, there are concerns on its financial health. OLN has a decent growth rate and is not valued too expensively.
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.
In the past 5 years OLN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OLN (1.43%) is comparable to the rest of the industry.
OLN has a Return On Equity (5.37%) which is in line with its industry peers.
OLN's Return On Invested Capital of 4.55% is in line compared to the rest of the industry. OLN outperforms 54.22% of its industry peers.
OLN had an Average Return On Invested Capital over the past 3 years of 11.83%. This is significantly above the industry average of 6.65%.
The 3 year average ROIC (11.83%) for OLN is well above the current ROIC(4.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.37% | ||
| ROIC | 4.55% |
ROA(3y)7.96%
ROA(5y)5.48%
ROE(3y)26.05%
ROE(5y)12.04%
ROIC(3y)11.83%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.66%, OLN perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
In the last couple of years the Profit Margin of OLN has declined.
OLN has a worse Operating Margin (5.34%) than 61.45% of its industry peers.
OLN's Operating Margin has improved in the last couple of years.
OLN has a Gross Margin of 11.57%. This is in the lower half of the industry: OLN underperforms 79.52% of its industry peers.
OLN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.34% | ||
| PM (TTM) | 1.66% | ||
| GM | 11.57% |
OM growth 3Y-37.89%
OM growth 5Y3.98%
PM growth 3Y-51.5%
PM growth 5YN/A
GM growth 3Y-24.03%
GM growth 5Y0.68%
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.
OLN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OLN is higher compared to a year ago.
2.2 Solvency
OLN has an Altman-Z score of 1.87. 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 (1.87) which is in line with its industry peers.
OLN has a debt to FCF ratio of 9.22. This is a negative value and a sign of low solvency as OLN would need 9.22 years to pay back of all of its debts.
OLN has a Debt to FCF ratio of 9.22. This is comparable to the rest of the industry: OLN outperforms 54.22% of its industry peers.
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 in the lower half of the industry: OLN underperforms 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.22 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.55
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.27 indicates that OLN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, OLN is doing worse than 83.13% of the companies in the same industry.
OLN has a Quick Ratio of 1.27. 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 (0.77) than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for OLN have decreased strongly by -68.55% in the last year.
Measured over the past years, OLN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.01% on average per year.
Looking at the last year, OLN shows a decrease in Revenue. The Revenue has decreased by -4.29% in the last year.
The Revenue has been growing slightly by 1.37% on average over the past years.
EPS 1Y (TTM)-68.55%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-21.74%
Revenue 1Y (TTM)-4.29%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%3.51%
3.2 Future
Based on estimates for the next years, OLN will show a very strong growth in Earnings Per Share. The EPS will grow by 52.93% on average per year.
Based on estimates for the next years, OLN will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
EPS Next Y2.93%
EPS Next 2Y58.62%
EPS Next 3Y52.93%
EPS Next 5YN/A
Revenue Next Year5.09%
Revenue Next 2Y5.09%
Revenue Next 3Y3.51%
Revenue Next 5YN/A
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 accelerating.
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
Based on the Price/Earnings ratio of 22.96, the valuation of OLN can be described as rather expensive.
OLN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. OLN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 22.30 indicates a rather expensive valuation of OLN.
OLN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. OLN is more expensive than 60.24% of the companies in the same industry.
OLN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 22.3 |
4.2 Price Multiples
87.95% of the companies in the same industry are more expensive than OLN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OLN indicates a rather cheap valuation: OLN is cheaper than 84.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.09 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OLN's earnings are expected to grow with 52.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.85
PEG (5Y)2.55
EPS Next 2Y58.62%
EPS Next 3Y52.93%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 2.90%.
The stock price of OLN dropped by -37.35% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.28, OLN pays a bit more dividend than its industry peers.
OLN's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
86.74% of the earnings are spent on dividend by OLN. This is not a sustainable payout ratio.
DP86.74%
EPS Next 2Y58.62%
EPS Next 3Y52.93%
26.86
-0.7 (-2.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.37%
Inst Owner Change0.82%
Ins Owners0.3%
Ins Owner Change0.38%
Market Cap3.11B
Analysts70.43
Price Target36.51 (35.93%)
Short Float %3.44%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP86.74%
Div Incr Years0
Div Non Decr Years24
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)71.68%
Min EPS beat(2)-508.23%
Max EPS beat(2)651.59%
EPS beat(4)2
Avg EPS beat(4)40.11%
Min EPS beat(4)-508.23%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)27.02%
EPS beat(12)10
Avg EPS beat(12)20.91%
EPS beat(16)13
Avg EPS beat(16)19.7%
Revenue beat(2)1
Avg Revenue beat(2)3.38%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)6.79%
Revenue beat(4)1
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)6.79%
Revenue beat(8)2
Avg Revenue beat(8)-2.45%
Revenue beat(12)3
Avg Revenue beat(12)-2.47%
Revenue beat(16)5
Avg Revenue beat(16)-1.73%
PT rev (1m)-7.99%
PT rev (3m)-16.32%
EPS NQ rev (1m)-116.15%
EPS NQ rev (3m)-105.99%
EPS NY rev (1m)-55.64%
EPS NY rev (3m)-57.6%
Revenue NQ rev (1m)-3.29%
Revenue NQ rev (3m)-15.35%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 22.3 | ||
| P/S | 0.48 | ||
| P/FCF | 10.09 | ||
| P/OCF | 6.18 | ||
| P/B | 1.54 | ||
| P/tB | 7.91 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)1.17
EY4.36%
EPS(NY)1.2
Fwd EY4.48%
FCF(TTM)2.66
FCFY9.91%
OCF(TTM)4.35
OCFY16.19%
SpS56.53
BVpS17.49
TBVpS3.4
PEG (NY)7.85
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.37% | ||
| ROCE | 5.87% | ||
| ROIC | 4.55% | ||
| ROICexc | 4.69% | ||
| ROICexgc | 6.53% | ||
| OM | 5.34% | ||
| PM (TTM) | 1.66% | ||
| GM | 11.57% | ||
| FCFM | 4.71% |
ROA(3y)7.96%
ROA(5y)5.48%
ROE(3y)26.05%
ROE(5y)12.04%
ROIC(3y)11.83%
ROIC(5y)N/A
ROICexc(3y)12.19%
ROICexc(5y)N/A
ROICexgc(3y)21.25%
ROICexgc(5y)N/A
ROCE(3y)15.27%
ROCE(5y)N/A
ROICexcg growth 3Y-40.73%
ROICexcg growth 5Y10.81%
ROICexc growth 3Y-41.25%
ROICexc growth 5Y12.19%
OM growth 3Y-37.89%
OM growth 5Y3.98%
PM growth 3Y-51.5%
PM growth 5YN/A
GM growth 3Y-24.03%
GM growth 5Y0.68%
F-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.22 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 37.66% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.02% | ||
| Profit Quality | 283.7% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.87 |
F-Score4
WACC8.24%
ROIC/WACC0.55
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)-68.55%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-21.74%
EPS Next Y2.93%
EPS Next 2Y58.62%
EPS Next 3Y52.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.29%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%3.51%
Revenue Next Year5.09%
Revenue Next 2Y5.09%
Revenue Next 3Y3.51%
Revenue Next 5YN/A
EBIT growth 1Y-56.88%
EBIT growth 3Y-43.97%
EBIT growth 5Y5.4%
EBIT Next Year191.8%
EBIT Next 3Y56.27%
EBIT Next 5YN/A
FCF growth 1Y-58.27%
FCF growth 3Y-41.52%
FCF growth 5Y5.87%
OCF growth 1Y-48.35%
OCF growth 3Y-33.88%
OCF growth 5Y-4%