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. OLN has a medium profitability rating, but doesn't score so well on its financial health evaluation. OLN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
OLN had positive earnings in the past year.
In the past year OLN had a positive cash flow from operations.
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
OLN's Return On Assets of 0.80% is in line compared to the rest of the industry. OLN outperforms 48.24% of its industry peers.
OLN has a Return On Equity of 3.06%. This is comparable to the rest of the industry: OLN outperforms 50.59% of its industry peers.
OLN has a Return On Invested Capital (3.75%) which is comparable to the rest of the industry.
OLN had an Average Return On Invested Capital over the past 3 years of 11.96%. This is significantly above the industry average of 6.84%.
The 3 year average ROIC (11.96%) for OLN is well above the current ROIC(3.75%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 3.06% | ||
| ROIC | 3.75% |
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's Profit Margin of 0.94% is in line compared to the rest of the industry. OLN outperforms 47.06% of its industry peers.
OLN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.60%, OLN is not doing good in the industry: 65.88% of the companies in the same industry are doing better.
OLN's Operating Margin has improved in the last couple of years.
OLN has a worse Gross Margin (10.82%) than 80.00% of its industry peers.
OLN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.6% | ||
| PM (TTM) | 0.94% | ||
| GM | 10.82% |
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.
OLN has less shares outstanding than it did 5 years ago.
OLN has a worse debt/assets ratio than last year.
2.2 Solvency
OLN has an Altman-Z score of 1.79. This is a bad value and indicates that OLN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.79, OLN is in line with its industry, outperforming 45.88% of the companies in the same industry.
The Debt to FCF ratio of OLN is 24.48, which is on the high side as it means it would take OLN, 24.48 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OLN (24.48) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.50 is on the high side and indicates that OLN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.50, OLN is not doing good in the industry: 77.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 24.48 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.43
WACC8.77%
2.3 Liquidity
OLN has a Current Ratio of 1.56. This is a normal value and indicates that OLN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.56, OLN is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
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.
OLN's Quick ratio of 0.96 is on the low side compared to the rest of the industry. OLN is outperformed by 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for OLN have decreased strongly by -72.12% 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.
OLN shows a decrease in Revenue. In the last year, the revenue decreased by -1.13%.
The Revenue has been growing slightly by 1.37% on average over the past years.
EPS 1Y (TTM)-72.12%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-89.36%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%0.54%
3.2 Future
The Earnings Per Share is expected to grow by 37.04% on average over the next years. This is a very strong growth
OLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.
EPS Next Y-39.97%
EPS Next 2Y33.8%
EPS Next 3Y37.04%
EPS Next 5YN/A
Revenue Next Year4.14%
Revenue Next 2Y4.17%
Revenue Next 3Y3.55%
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.
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
OLN is valuated quite expensively with a Price/Earnings ratio of 28.09.
OLN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.29. OLN is around the same levels.
The Price/Forward Earnings ratio is 10.06, which indicates a very decent valuation of OLN.
Based on the Price/Forward Earnings ratio, OLN is valued a bit cheaper than 77.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.74. OLN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
83.53% of the companies in the same industry are more expensive than OLN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, OLN is valued a bit cheaper than 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.56 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
A more expensive valuation may be justified as OLN's earnings are expected to grow with 37.04% in the coming years.
PEG (NY)N/A
PEG (5Y)3.12
EPS Next 2Y33.8%
EPS Next 3Y37.04%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 3.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.57, OLN pays a better dividend. On top of this OLN pays more dividend than 81.18% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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
151.95% of the earnings are spent on dividend by OLN. This is not a sustainable payout ratio.
DP151.95%
EPS Next 2Y33.8%
EPS Next 3Y37.04%
21.07
-0.85 (-3.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change-0.02%
Ins Owners0.39%
Ins Owner Change1.14%
Market Cap2.43B
Analysts67.62
Price Target25.64 (21.69%)
Short Float %4.5%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP151.95%
Div Incr Years0
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)405.35%
Min EPS beat(2)159.11%
Max EPS beat(2)651.59%
EPS beat(4)2
Avg EPS beat(4)74.17%
Min EPS beat(4)-508.23%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)45.44%
EPS beat(12)10
Avg EPS beat(12)33.71%
EPS beat(16)13
Avg EPS beat(16)28.44%
Revenue beat(2)2
Avg Revenue beat(2)4.97%
Min Revenue beat(2)3.15%
Max Revenue beat(2)6.79%
Revenue beat(4)2
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)6.79%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-2.2%
Revenue beat(16)6
Avg Revenue beat(16)-1.45%
PT rev (1m)-14.32%
PT rev (3m)-25.71%
EPS NQ rev (1m)-37.86%
EPS NQ rev (3m)-74.79%
EPS NY rev (1m)-16.13%
EPS NY rev (3m)-40.27%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 10.06 | ||
| P/S | 0.37 | ||
| P/FCF | 19.56 | ||
| P/OCF | 7.22 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.43 |
EPS(TTM)0.75
EY3.56%
EPS(NY)2.09
Fwd EY9.94%
FCF(TTM)1.08
FCFY5.11%
OCF(TTM)2.92
OCFY13.86%
SpS56.88
BVpS17.42
TBVpS-5.59
PEG (NY)N/A
PEG (5Y)3.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 3.06% | ||
| ROCE | 4.85% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 6.88% | ||
| OM | 4.6% | ||
| PM (TTM) | 0.94% | ||
| GM | 10.82% | ||
| FCFM | 1.89% |
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
ROICexcg growth 3Y-32.74%
ROICexcg 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-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 24.48 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 40.76% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 1.64 | ||
| Cash Conversion | 40.91% | ||
| Profit Quality | 201.95% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.79 |
F-Score5
WACC8.77%
ROIC/WACC0.43
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)-72.12%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-89.36%
EPS Next Y-39.97%
EPS Next 2Y33.8%
EPS Next 3Y37.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%0.54%
Revenue Next Year4.14%
Revenue Next 2Y4.17%
Revenue Next 3Y3.55%
Revenue Next 5YN/A
EBIT growth 1Y-51.92%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year153.07%
EBIT Next 3Y52.3%
EBIT Next 5YN/A
FCF growth 1Y-90.85%
FCF growth 3Y-41.52%
FCF growth 5Y5.87%
OCF growth 1Y-79.06%
OCF growth 3Y-33.88%
OCF growth 5Y-4%