OLIN CORP (OLN) Stock Fundamental Analysis
USA - NYSE:OLN - US6806652052 - Common Stock
24.97 USD
-0.17 (-0.68%)
24.97 USD
0 (0%)
Taking everything into account, OLN scores 4 out of 10 in our fundamental rating. OLN was compared to 83 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. While showing a medium growth rate, OLN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year OLN was profitable.
In the past year OLN had a positive cash flow from operations.
Of the past 5 years OLN 4 years were profitable.
In the past 5 years OLN always reported a positive cash flow from operatings.
1.2 Ratios
OLN has a Return On Assets (-0.18%) which is comparable to the rest of the industry.
OLN has a Return On Equity (-0.72%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.52%, OLN is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
OLN had an Average Return On Invested Capital over the past 3 years of 11.96%. This is significantly above the industry average of 6.34%.
The last Return On Invested Capital (2.52%) for OLN is well below the 3 year average (11.96%), which needs to be investigated, but indicates that OLN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.72% | ||
| ROIC | 2.52% |
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
In the last couple of years the Profit Margin of OLN has declined.
Looking at the Operating Margin, with a value of 2.99%, OLN is doing worse than 68.67% of the companies in the same industry.
In the last couple of years the Operating Margin of OLN has grown nicely.
OLN's Gross Margin of 9.11% is on the low side compared to the rest of the industry. OLN is outperformed by 81.93% of its industry peers.
OLN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.99% | ||
| PM (TTM) | N/A | ||
| GM | 9.11% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OLN is creating some value.
OLN has less shares outstanding than it did 1 year ago.
OLN has less shares outstanding than it did 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 1.79. This is a bad value and indicates that OLN is not financially healthy and even has some risk of bankruptcy.
OLN has a Altman-Z score (1.79) which is in line with its industry peers.
The Debt to FCF ratio of OLN is 11.05, which is on the high side as it means it would take OLN, 11.05 years of fcf income to pay off all of its debts.
OLN has a Debt to FCF ratio of 11.05. This is in the better half of the industry: OLN outperforms 62.65% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that OLN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.52, OLN is doing worse than 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.28
WACC8.9%
2.3 Liquidity
OLN has a Current Ratio of 1.48. This is a normal value and indicates that OLN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of OLN (1.48) is worse than 71.08% of its industry peers.
A Quick Ratio of 0.88 indicates that OLN may have some problems paying its short term obligations.
OLN has a worse Quick ratio (0.88) than 73.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for OLN have decreased strongly by -94.17% in the last year.
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 1.49% in the past year.
The Revenue has been growing slightly by 1.37% on average over the past years.
EPS 1Y (TTM)-94.17%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-92.09%
Revenue 1Y (TTM)1.49%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%6.95%
3.2 Future
OLN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.06% yearly.
Based on estimates for the next years, OLN will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y-86.18%
EPS Next 2Y7.43%
EPS Next 3Y24.06%
EPS Next 5YN/A
Revenue Next Year6.74%
Revenue Next 2Y4.75%
Revenue Next 3Y4.18%
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.
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
The Price/Earnings ratio is 192.08, which means the current valuation is very expensive for OLN.
Based on the Price/Earnings ratio, OLN is valued a bit more expensive than the industry average as 67.47% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.41, OLN is valued quite expensively.
A Price/Forward Earnings ratio of 18.49 indicates a rather expensive valuation of OLN.
The rest of the industry has a similar Price/Forward Earnings ratio as OLN.
When comparing the Price/Forward Earnings ratio of OLN to the average of the S&P500 Index (22.88), we can say OLN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 192.08 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
OLN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OLN is cheaper than 72.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OLN indicates a rather cheap valuation: OLN is cheaper than 87.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.55 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
A more expensive valuation may be justified as OLN's earnings are expected to grow with 24.06% in the coming years.
PEG (NY)N/A
PEG (5Y)21.31
EPS Next 2Y7.43%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, OLN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.43, OLN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, OLN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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
OLN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-656.74%
EPS Next 2Y7.43%
EPS Next 3Y24.06%
24.97
-0.17 (-0.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.88%
Inst Owner Change1.38%
Ins Owners0.42%
Ins Owner Change1.31%
Market Cap2.86B
Analysts67.62
Price Target24.14 (-3.32%)
Short Float %8.25%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP-656.74%
Div Incr Years0
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)187.61%
Min EPS beat(2)159.11%
Max EPS beat(2)216.12%
EPS beat(4)3
Avg EPS beat(4)129.65%
Min EPS beat(4)-508.23%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)71.72%
EPS beat(12)10
Avg EPS beat(12)51.03%
EPS beat(16)13
Avg EPS beat(16)38.79%
Revenue beat(2)2
Avg Revenue beat(2)4.06%
Min Revenue beat(2)3.15%
Max Revenue beat(2)4.97%
Revenue beat(4)3
Avg Revenue beat(4)3.72%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)6.79%
Revenue beat(8)4
Avg Revenue beat(8)1.11%
Revenue beat(12)4
Avg Revenue beat(12)-1.66%
Revenue beat(16)6
Avg Revenue beat(16)-1.38%
PT rev (1m)-0.56%
PT rev (3m)-6.43%
EPS NQ rev (1m)-24.88%
EPS NQ rev (3m)-74.37%
EPS NY rev (1m)-72.75%
EPS NY rev (3m)-80.69%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)3.27%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 192.08 | ||
| Fwd PE | 18.49 | ||
| P/S | 0.43 | ||
| P/FCF | 10.55 | ||
| P/OCF | 6.25 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.85 |
EPS(TTM)0.13
EY0.52%
EPS(NY)1.35
Fwd EY5.41%
FCF(TTM)2.37
FCFY9.48%
OCF(TTM)4
OCFY16%
SpS58.14
BVpS17.08
TBVpS-5.83
PEG (NY)N/A
PEG (5Y)21.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.72% | ||
| ROCE | 3.25% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 4.71% | ||
| OM | 2.99% | ||
| PM (TTM) | N/A | ||
| GM | 9.11% | ||
| FCFM | 4.07% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 11.05 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 35.8% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 1.12 | ||
| Cash Conversion | 63.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.79 |
F-Score5
WACC8.9%
ROIC/WACC0.28
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)-94.17%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-92.09%
EPS Next Y-86.18%
EPS Next 2Y7.43%
EPS Next 3Y24.06%
EPS Next 5YN/A
Revenue 1Y (TTM)1.49%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%6.95%
Revenue Next Year6.74%
Revenue Next 2Y4.75%
Revenue Next 3Y4.18%
Revenue Next 5YN/A
EBIT growth 1Y-62.23%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year125.97%
EBIT Next 3Y46.89%
EBIT Next 5YN/A
FCF growth 1Y-74.02%
FCF growth 3Y-41.52%
FCF growth 5Y5.87%
OCF growth 1Y-64.93%
OCF growth 3Y-33.88%
OCF growth 5Y-4%