OLIN CORP (OLN)
US6806652052 - Common Stock
We assign a fundamental rating of 5 out of 10 to OLN. OLN was compared to 83 industry peers in the Chemicals industry. While OLN has a great profitability rating, there are some minor concerns on its financial health. OLN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year OLN was profitable.
OLN had a positive operating cash flow in the past year.
In multiple years OLN reported negative net income over the last 5 years.
OLN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.64%, OLN is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
OLN has a better Return On Equity (16.27%) than 79.52% of its industry peers.
OLN has a Return On Invested Capital of 8.29%. This is in the better half of the industry: OLN outperforms 75.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OLN is significantly above the industry average of 6.66%.
The last Return On Invested Capital (8.29%) 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 | 4.64% | ||
| ROE | 16.27% | ||
| ROIC | 8.29% |
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
With a decent Profit Margin value of 5.33%, OLN is doing good in the industry, outperforming 63.86% of the companies in the same industry.
OLN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 9.70%, OLN perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
In the last couple of years the Operating Margin of OLN has grown nicely.
The Gross Margin of OLN (15.04%) is worse than 73.49% of its industry peers.
In the last couple of years the Gross Margin of OLN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 5.33% | ||
| GM | 15.04% |
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.
Compared to 5 years ago, OLN has less shares outstanding
OLN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.33 indicates that OLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of OLN (2.33) is better than 61.45% of its industry peers.
OLN has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as OLN would need 3.46 years to pay back of all of its debts.
OLN has a better Debt to FCF ratio (3.46) than 79.52% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that OLN has dependencies on debt financing.
OLN's Debt to Equity ratio of 1.24 is on the low side compared to the rest of the industry. OLN is outperformed by 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.05
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.38 indicates that OLN should not have too much problems paying its short term obligations.
OLN has a worse Current ratio (1.38) than 84.34% of its industry peers.
A Quick Ratio of 0.80 indicates that OLN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, OLN is doing worse than 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
OLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.09%.
OLN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.66% yearly.
OLN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.12%.
The Revenue has been decreasing by -0.33% on average over the past years.
EPS 1Y (TTM)-64.09%
EPS 3YN/A
EPS 5Y17.66%
EPS Q2Q%-42.59%
Revenue 1Y (TTM)-27.12%
Revenue growth 3Y5.87%
Revenue growth 5Y-0.33%
Sales Q2Q%-3.45%
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 25.85% on average per year.
OLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.34% yearly.
EPS Next Y-2.17%
EPS Next 2Y26.12%
EPS Next 3Y25.85%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y7.34%
Revenue Next 3Y6.34%
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.
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
A Price/Earnings ratio of 20.00 indicates a rather expensive valuation of OLN.
62.65% of the companies in the same industry are more expensive than OLN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.41, OLN is valued at the same level.
With a Price/Forward Earnings ratio of 7.54, the valuation of OLN can be described as very cheap.
89.16% of the companies in the same industry are more expensive than OLN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.59. OLN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
OLN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OLN is cheaper than 84.34% 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 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
The decent profitability rating of OLN may justify a higher PE ratio.
A more expensive valuation may be justified as OLN's earnings are expected to grow with 25.85% in the coming years.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y26.12%
EPS Next 3Y25.85%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, OLN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, OLN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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
OLN pays out 27.94% of its income as dividend. This is a sustainable payout ratio.
DP27.94%
EPS Next 2Y26.12%
EPS Next 3Y25.85%
OLIN CORP
NYSE:OLN (7/26/2024, 5:40:00 PM)
After market: 45.2347 +0.64 (+1.45%)44.59
-3.45 (-7.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 7.54 | ||
| 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)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 16.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.7% | ||
| PM (TTM) | 5.33% | ||
| GM | 15.04% | ||
| 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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.8 | ||
| 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)-64.09%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-2.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-27.12%
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