OLIN CORP (OLN) Stock Fundamental Analysis
USA - NYSE:OLN - US6806652052 - Common Stock
24.23 USD
-0.3 (-1.22%)
24.23 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. While OLN is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
OLN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OLN (-0.18%) is comparable to the rest of the industry.
The Return On Equity of OLN (-0.72%) is comparable to the rest of the industry.
OLN has a Return On Invested Capital of 2.52%. This is in the lower half of the industry: OLN underperforms 63.86% 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 6.30%.
The 3 year average ROIC (11.96%) for OLN is well above the current ROIC(2.52%). The reason for the recent decline needs to be investigated.
| 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.
OLN has a Operating Margin of 2.99%. This is in the lower half of the industry: OLN underperforms 68.67% of its industry peers.
In the last couple of years the Operating Margin of OLN has grown nicely.
OLN has a worse Gross Margin (9.11%) than 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
OLN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, OLN has less shares outstanding
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 1.78. This is a bad value and indicates that OLN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OLN (1.78) is comparable to the rest of the industry.
OLN has a debt to FCF ratio of 11.05. This is a negative value and a sign of low solvency as OLN would need 11.05 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 11.05, OLN is doing good in the industry, outperforming 61.45% of the companies in the same industry.
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 | 1.78 |
ROIC/WACC0.29
WACC8.62%
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
OLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -93.73%.
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 1.49%.
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)-93.73%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-90.6%
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 24.07% yearly.
Based on estimates for the next years, OLN will show a small growth in Revenue. The Revenue will grow by 4.12% on average per year.
EPS Next Y-89.3%
EPS Next 2Y6.08%
EPS Next 3Y24.07%
EPS Next 5YN/A
Revenue Next Year6.54%
Revenue Next 2Y4.67%
Revenue Next 3Y4.12%
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 173.07, the valuation of OLN can be described as expensive.
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 27.49, OLN is valued quite expensively.
OLN is valuated rather expensively with a Price/Forward Earnings ratio of 18.40.
The rest of the industry has a similar Price/Forward Earnings ratio as OLN.
OLN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 173.07 | ||
| Fwd PE | 18.4 |
4.2 Price Multiples
72.29% of the companies in the same industry are more expensive than OLN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, OLN is valued cheaper than 87.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
A more expensive valuation may be justified as OLN's earnings are expected to grow with 24.07% in the coming years.
PEG (NY)N/A
PEG (5Y)19.2
EPS Next 2Y6.08%
EPS Next 3Y24.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, OLN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, OLN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, OLN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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
The earnings of OLN are negative and hence is the payout ratio. OLN will probably not be able to sustain this dividend level.
DP-656.74%
EPS Next 2Y6.08%
EPS Next 3Y24.07%
24.23
-0.3 (-1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change0%
Ins Owners0.44%
Ins Owner Change1.31%
Market Cap2.78B
Analysts68.57
Price Target24.41 (0.74%)
Short Float %8.03%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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)217.44%
Min EPS beat(2)159.11%
Max EPS beat(2)275.76%
EPS beat(4)3
Avg EPS beat(4)144.56%
Min EPS beat(4)-508.23%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)79.18%
EPS beat(12)10
Avg EPS beat(12)56%
EPS beat(16)13
Avg EPS beat(16)42.52%
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)1.13%
PT rev (3m)-4.77%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-72.75%
EPS NY rev (1m)-22.59%
EPS NY rev (3m)-78.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 173.07 | ||
| Fwd PE | 18.4 | ||
| P/S | 0.42 | ||
| P/FCF | 10.24 | ||
| P/OCF | 6.06 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.75 |
EPS(TTM)0.14
EY0.58%
EPS(NY)1.32
Fwd EY5.43%
FCF(TTM)2.37
FCFY9.77%
OCF(TTM)4
OCFY16.49%
SpS58.14
BVpS17.08
TBVpS-5.83
PEG (NY)N/A
PEG (5Y)19.2
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 | 1.78 |
F-Score5
WACC8.62%
ROIC/WACC0.29
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)-93.73%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-90.6%
EPS Next Y-89.3%
EPS Next 2Y6.08%
EPS Next 3Y24.07%
EPS Next 5YN/A
Revenue 1Y (TTM)1.49%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%6.95%
Revenue Next Year6.54%
Revenue Next 2Y4.67%
Revenue Next 3Y4.12%
Revenue Next 5YN/A
EBIT growth 1Y-62.23%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year124.27%
EBIT Next 3Y46.84%
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%