OLIN CORP (OLN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OLN - US6806652052 - Common Stock
20.83 USD
-0.13 (-0.62%)
20.83 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to OLN. OLN was compared to 83 industry peers in the Chemicals industry. There are concerns on the financial health of OLN while its profitability can be described as average. OLN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OLN had positive earnings in the past year.
OLN had a positive operating cash flow in the past year.
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
The Return On Assets of OLN (0.71%) is comparable to the rest of the industry.
The Return On Equity of OLN (2.73%) is comparable to the rest of the industry.
OLN's Return On Invested Capital of 3.27% is in line compared to the rest of the industry. OLN outperforms 48.19% of its industry peers.
OLN had an Average Return On Invested Capital over the past 3 years of 11.96%. This is significantly above the industry average of 6.09%.
The 3 year average ROIC (11.96%) for OLN is well above the current ROIC(3.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.73% | ||
| ROIC | 3.27% |
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 0.79% is in line compared to the rest of the industry. OLN outperforms 55.42% of its industry peers.
In the last couple of years the Profit Margin of OLN has declined.
The Operating Margin of OLN (3.83%) is worse than 62.65% of its industry peers.
OLN's Operating Margin has improved in the last couple of years.
OLN's Gross Margin of 9.64% 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 | 3.83% | ||
| PM (TTM) | 0.79% | ||
| GM | 9.64% |
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.
The number of shares outstanding for OLN has been reduced compared to 5 years ago.
OLN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.81 indicates that OLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.81, OLN is in line with its industry, outperforming 50.60% of the companies in the same industry.
The Debt to FCF ratio of OLN is 37.32, which is on the high side as it means it would take OLN, 37.32 years of fcf income to pay off all of its debts.
OLN's Debt to FCF ratio of 37.32 is in line compared to the rest of the industry. OLN outperforms 46.99% 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.
OLN has a Debt to Equity ratio of 1.52. This is in the lower half of the industry: OLN underperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 37.32 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.33
WACC10.02%
2.3 Liquidity
A Current Ratio of 1.56 indicates that OLN should not have too much problems paying its short term obligations.
OLN has a Current ratio of 1.56. This is in the lower half of the industry: OLN underperforms 68.67% of its industry peers.
A Quick Ratio of 0.89 indicates that OLN may have some problems paying its short term obligations.
OLN has a worse Quick ratio (0.89) than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for OLN have decreased strongly by -43.20% 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.
OLN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
The Revenue has been growing slightly by 1.37% on average over the past years.
EPS 1Y (TTM)-43.2%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%366.67%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%7.78%
3.2 Future
The Earnings Per Share is expected to grow by 6.00% on average over the next years.
Based on estimates for the next years, OLN will show a small growth in Revenue. The Revenue will grow by 5.40% on average per year.
EPS Next Y-87.7%
EPS Next 2Y-20.63%
EPS Next 3Y6%
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y2.99%
Revenue Next 3Y3.19%
Revenue Next 5Y5.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 30.19 indicates a quite expensive valuation of OLN.
Compared to the rest of the industry, the Price/Earnings ratio of OLN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of OLN to the average of the S&P500 Index (26.51), we can say OLN is valued inline with the index average.
The Price/Forward Earnings ratio is 28.26, which means the current valuation is very expensive for OLN.
Based on the Price/Forward Earnings ratio, OLN is valued a bit more expensive than the industry average as 61.45% of the companies are valued more cheaply.
OLN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.19 | ||
| Fwd PE | 28.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OLN indicates a rather cheap valuation: OLN is cheaper than 81.93% of the companies listed in the same industry.
60.24% 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 | 29.64 | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.35
EPS Next 2Y-20.63%
EPS Next 3Y6%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 3.88%.
OLN's Dividend Yield is rather good when compared to the industry average which is at 2.48. OLN pays more dividend than 83.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, OLN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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 pays out 171.83% of its income as dividend. This is not a sustainable payout ratio.
DP171.83%
EPS Next 2Y-20.63%
EPS Next 3Y6%
20.83
-0.13 (-0.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change1.96%
Ins Owners0.43%
Ins Owner Change1%
Market Cap2.38B
Revenue(TTM)6.79B
Net Income(TTM)53.60M
Analysts66.67
Price Target24 (15.22%)
Short Float %8.87%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP171.83%
Div Incr Years0
Div Non Decr Years24
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)328.58%
Min EPS beat(2)275.76%
Max EPS beat(2)381.39%
EPS beat(4)4
Avg EPS beat(4)366.96%
Min EPS beat(4)159.11%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)124.21%
EPS beat(12)10
Avg EPS beat(12)86.55%
EPS beat(16)13
Avg EPS beat(16)65.27%
Revenue beat(2)1
Avg Revenue beat(2)1.38%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)4.97%
Revenue beat(4)3
Avg Revenue beat(4)3.18%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)6.79%
Revenue beat(8)4
Avg Revenue beat(8)1.4%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)6
Avg Revenue beat(16)-1.41%
PT rev (1m)-1.12%
PT rev (3m)-0.56%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-733.56%
EPS NY rev (1m)-6.74%
EPS NY rev (3m)14.95%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-5.61%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.19 | ||
| Fwd PE | 28.26 | ||
| P/S | 0.35 | ||
| P/FCF | 29.64 | ||
| P/OCF | 8.07 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)0.69
EY3.31%
EPS(NY)0.74
Fwd EY3.54%
FCF(TTM)0.7
FCFY3.37%
OCF(TTM)2.58
OCFY12.4%
SpS59.47
BVpS17.19
TBVpS-5.55
PEG (NY)N/A
PEG (5Y)3.35
Graham Number16.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.73% | ||
| ROCE | 4.23% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 5.9% | ||
| OM | 3.83% | ||
| PM (TTM) | 0.79% | ||
| GM | 9.64% | ||
| FCFM | 1.18% |
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
ROICexgc growth 3Y-32.74%
ROICexgc 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-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 37.32 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 40.85% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 1.61 | ||
| Cash Conversion | 37.55% | ||
| Profit Quality | 149.63% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.81 |
F-Score6
WACC10.02%
ROIC/WACC0.33
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)-43.2%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%366.67%
EPS Next Y-87.7%
EPS Next 2Y-20.63%
EPS Next 3Y6%
EPS Next 5YN/A
Revenue 1Y (TTM)4.68%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%7.78%
Revenue Next Year4.58%
Revenue Next 2Y2.99%
Revenue Next 3Y3.19%
Revenue Next 5Y5.4%
EBIT growth 1Y-30.39%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year119.12%
EBIT Next 3Y41.94%
EBIT Next 5Y37.4%
FCF growth 1Y-88.99%
FCF growth 3Y-41.52%
FCF growth 5Y5.87%
OCF growth 1Y-69.62%
OCF growth 3Y-33.88%
OCF growth 5Y-4%
OLIN CORP / OLN FAQ
What is the fundamental rating for OLN stock?
ChartMill assigns a fundamental rating of 4 / 10 to OLN.
What is the valuation status of OLIN CORP (OLN) stock?
ChartMill assigns a valuation rating of 2 / 10 to OLIN CORP (OLN). This can be considered as Overvalued.
What is the profitability of OLN stock?
OLIN CORP (OLN) has a profitability rating of 5 / 10.
What are the PE and PB ratios of OLIN CORP (OLN) stock?
The Price/Earnings (PE) ratio for OLIN CORP (OLN) is 30.19 and the Price/Book (PB) ratio is 1.21.
How financially healthy is OLIN CORP?
The financial health rating of OLIN CORP (OLN) is 3 / 10.