OLIN CORP (OLN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OLN - US6806652052 - Common Stock
20.46 USD
+0.02 (+0.1%)
20.9517 USD
+0.49 (+2.4%)
Taking everything into account, OLN scores 4 out of 10 in our fundamental rating. OLN was compared to 81 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.
In the past year OLN had a positive cash flow from operations.
Of the past 5 years OLN 4 years were profitable.
Each year in the past 5 years OLN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.71%, OLN perfoms like the industry average, outperforming 56.79% of the companies in the same industry.
With a Return On Equity value of 2.73%, OLN perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
OLN has a Return On Invested Capital of 3.27%. This is comparable to the rest of the industry: OLN outperforms 46.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OLN is significantly above the industry average of 6.15%.
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 has a Profit Margin of 0.79%. This is comparable to the rest of the industry: OLN outperforms 55.56% of its industry peers.
In the last couple of years the Profit Margin of OLN has declined.
OLN has a Operating Margin of 3.83%. This is in the lower half of the industry: OLN underperforms 64.20% of its industry peers.
OLN's Operating Margin has improved in the last couple of years.
OLN has a Gross Margin of 9.64%. This is amonst the worse of the industry: OLN underperforms 82.72% of its industry peers.
In the last couple of years the Gross Margin of OLN has remained more or less at the same level.
| 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.
Compared to 5 years ago, OLN has less shares outstanding
Compared to 1 year ago, OLN has a worse debt to assets ratio.
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 of 1.81. This is comparable to the rest of the industry: OLN outperforms 49.38% of its industry peers.
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 45.68% 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 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 37.32 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.38
WACC8.67%
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 71.60% of its industry peers.
OLN has a Quick Ratio of 1.56. This is a bad value and indicates that OLN is not financially healthy enough and could expect problems in meeting its short term obligations.
OLN has a worse Quick ratio (0.89) than 71.60% 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.
Measured over the past years, OLN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.01% on average per year.
OLN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
OLN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.37% yearly.
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 8.96% on average over the next years. This is quite good.
OLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.40% yearly.
EPS Next Y-90.01%
EPS Next 2Y-20.49%
EPS Next 3Y8.96%
EPS Next 5YN/A
Revenue Next Year4.78%
Revenue Next 2Y3.46%
Revenue Next 3Y3.44%
Revenue Next 5Y5.4%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 29.65 indicates a quite expensive valuation of OLN.
OLN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.46. OLN is around the same levels.
The Price/Forward Earnings ratio is 27.66, which means the current valuation is very expensive for OLN.
61.73% of the companies in the same industry are cheaper than OLN, based on the Price/Forward Earnings ratio.
OLN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.65 | ||
| Fwd PE | 27.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLN is valued cheaper than 83.95% of the companies in the same industry.
OLN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.11 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.29
EPS Next 2Y-20.49%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 3.97, OLN pays a better dividend. On top of this OLN pays more dividend than 80.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, OLN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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 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-20.49%
EPS Next 3Y8.96%
20.46
+0.02 (+0.1%)
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 Change1.1%
Market Cap2.33B
Revenue(TTM)6.79B
Net Income(TTM)53.60M
Analysts66.67
Price Target24.28 (18.67%)
Short Float %7.97%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP171.83%
Div Incr Years0
Div Non Decr Years24
Ex-Date
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)-5.3%
PT rev (3m)0.56%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-696.74%
EPS NY rev (1m)-24.25%
EPS NY rev (3m)-27.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.65 | ||
| Fwd PE | 27.66 | ||
| P/S | 0.34 | ||
| P/FCF | 29.11 | ||
| P/OCF | 7.92 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.61 |
EPS(TTM)0.69
EY3.37%
EPS(NY)0.74
Fwd EY3.62%
FCF(TTM)0.7
FCFY3.43%
OCF(TTM)2.58
OCFY12.62%
SpS59.47
BVpS17.19
TBVpS-5.55
PEG (NY)N/A
PEG (5Y)3.29
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
WACC8.67%
ROIC/WACC0.38
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-90.01%
EPS Next 2Y-20.49%
EPS Next 3Y8.96%
EPS Next 5YN/A
Revenue 1Y (TTM)4.68%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%7.78%
Revenue Next Year4.78%
Revenue Next 2Y3.46%
Revenue Next 3Y3.44%
Revenue Next 5Y5.4%
EBIT growth 1Y-30.39%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year119.74%
EBIT Next 3Y42.82%
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.
Can you provide the valuation status for OLIN CORP?
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.
How financially healthy is OLIN CORP?
The financial health rating of OLIN CORP (OLN) is 2 / 10.
Can you provide the dividend sustainability for OLN stock?
The dividend rating of OLIN CORP (OLN) is 5 / 10 and the dividend payout ratio is 171.83%.