OLIN CORP (OLN) Stock Fundamental Analysis
NYSE:OLN - New York Stock Exchange, Inc. - US6806652052 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OLN. 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.
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
OLN has a Return On Assets of 0.80%. This is comparable to the rest of the industry: OLN outperforms 48.24% of its industry peers.
OLN has a Return On Equity (3.06%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.75%, OLN perfoms like the industry average, outperforming 43.53% 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 6.84%.
The last Return On Invested Capital (3.75%) 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 | 0.8% | ||
| 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 has a Profit Margin of 0.94%. This is comparable to the rest of the industry: OLN outperforms 47.06% of its industry peers.
In the last couple of years the Profit Margin of OLN has declined.
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.
In the last couple of years the Operating Margin of OLN has grown nicely.
The Gross Margin of OLN (10.82%) is worse 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
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.
The debt/assets ratio for OLN is higher compared to a year ago.
2.2 Solvency
OLN has an Altman-Z score of 1.81. 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 (1.81) which is in line with its industry peers.
OLN has a debt to FCF ratio of 24.48. This is a negative value and a sign of low solvency as OLN would need 24.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.48, OLN is in line with its industry, outperforming 47.06% of the companies in the same industry.
OLN has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
OLN's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. OLN is outperformed by 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 24.48 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.43
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.56 indicates that OLN should not have too much problems paying its short term obligations.
The Current ratio of OLN (1.56) is worse than 63.53% of its industry peers.
A Quick Ratio of 0.96 indicates that OLN may have some problems paying its short term obligations.
OLN has a worse Quick ratio (0.96) than 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.
OLN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.01% yearly.
Looking at the last year, OLN shows a decrease in Revenue. The Revenue has decreased by -1.13% in the last year.
Measured over the past years, OLN shows a small growth in Revenue. The Revenue has been growing by 1.37% on average per year.
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
Based on estimates for the next years, OLN will show a very strong growth in Earnings Per Share. The EPS will grow by 37.04% on average per year.
Based on estimates for the next years, OLN will show a small growth in Revenue. The Revenue will grow by 3.55% on average per year.
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
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
Based on the Price/Earnings ratio of 29.23, the valuation of OLN can be described as expensive.
OLN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. OLN is around the same levels.
The Price/Forward Earnings ratio is 10.46, which indicates a very decent valuation of OLN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OLN indicates a somewhat cheap valuation: OLN is cheaper than 77.65% of the companies listed in the same industry.
OLN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.23 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
OLN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OLN is cheaper than 83.53% of the companies in the same industry.
72.94% 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 | 20.35 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
OLN's earnings are expected to grow with 37.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.24
EPS Next 2Y33.8%
EPS Next 3Y37.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.65%, OLN has a reasonable but not impressive dividend return.
OLN's Dividend Yield is rather good when compared to the industry average which is at 3.58. OLN pays more dividend than 81.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, OLN pays a better dividend.
| 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 their dividend for at least 10 years, which is a reliable track record.
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%
21.92
-0.05 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change-37.92%
Ins Owners0.39%
Ins Owner Change1.14%
Market Cap2.52B
Analysts67.62
Price Target25.64 (16.97%)
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 | 29.23 | ||
| Fwd PE | 10.46 | ||
| P/S | 0.39 | ||
| P/FCF | 20.35 | ||
| P/OCF | 7.51 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.55 |
EPS(TTM)0.75
EY3.42%
EPS(NY)2.09
Fwd EY9.56%
FCF(TTM)1.08
FCFY4.91%
OCF(TTM)2.92
OCFY13.32%
SpS56.88
BVpS17.42
TBVpS-5.59
PEG (NY)N/A
PEG (5Y)3.24
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 | 1.81 |
F-Score5
WACC8.74%
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%