OLIN CORP (OLN)
US6806652052 - Common Stock
We assign a fundamental rating of 5 out of 10 to OLN. OLN was compared to 84 industry peers in the Chemicals industry. OLN has an average financial health and profitability rating. 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.
In the past year OLN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OLN reported negative net income in multiple years.
In the past 5 years OLN always reported a positive cash flow from operatings.
1.2 Ratios
OLN has a Return On Assets of 2.01%. This is comparable to the rest of the industry: OLN outperforms 51.19% of its industry peers.
Looking at the Return On Equity, with a value of 7.33%, OLN is in line with its industry, outperforming 59.52% of the companies in the same industry.
OLN has a Return On Invested Capital (4.90%) which 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 6.50%.
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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of OLN has grown nicely.
OLN has a Operating Margin (5.76%) which is in line with its industry peers.
In the last couple of years the Operating Margin of OLN has grown nicely.
With a Gross Margin value of 12.08%, OLN is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of OLN has grown nicely.
| 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.
The number of shares outstanding for OLN has been reduced compared to 1 year ago.
The number of shares outstanding for OLN has been reduced compared to 5 years ago.
Compared to 1 year ago, OLN has a worse debt to assets ratio.
2.2 Solvency
OLN has an Altman-Z score of 2.09. 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.
Looking at the Altman-Z score, with a value of 2.09, OLN is in line with its industry, outperforming 59.52% of the companies in the same industry.
OLN has a debt to FCF ratio of 5.06. This is a neutral value as OLN would need 5.06 years to pay back of all of its debts.
OLN has a better Debt to FCF ratio (5.06) than 69.05% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that OLN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.34, OLN is not doing good in the industry: 77.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.61
WACC7.98%
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: 77.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.82 indicates that OLN may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, OLN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 17.66% on average over the past years. This is quite good.
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
OLN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.62% yearly.
OLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.48% yearly.
EPS Next Y-72.78%
EPS Next 2Y-12.62%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue Next Year-4.21%
Revenue Next 2Y0.91%
Revenue Next 3Y2.48%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 34.44, which means the current valuation is very expensive for OLN.
OLN's Price/Earnings ratio is in line with the industry average.
OLN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
OLN is valuated correctly with a Price/Forward Earnings ratio of 14.80.
Based on the Price/Forward Earnings ratio, OLN is valued a bit cheaper than the industry average as 63.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, OLN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.44 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLN is valued cheaper than 80.95% of the companies in the same industry.
OLN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OLN is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.58 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
The decent profitability rating of OLN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y-12.62%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 1.91%.
OLN's Dividend Yield is a higher than the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.23, OLN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of OLN decreases each year by -0.10%.
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)-0.1%
Div Incr Years0
Div Non Decr Years23
5.3 Sustainability
63.20% of the earnings are spent on dividend by OLN. This is not a sustainable payout ratio.
DP63.2%
EPS Next 2Y-12.62%
EPS Next 3Y8.62%
OLIN CORP
NYSE:OLN (11/21/2024, 6:39:39 PM)
After market: 42.02 0 (0%)42.02
+1.21 (+2.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.44 | ||
| Fwd PE | 14.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 7.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.76% | ||
| PM (TTM) | 2.33% | ||
| GM | 12.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-75.5%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-72.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.9%
Revenue growth 3Y5.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y