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. There are concerns on the financial health of OLN while its profitability can be described as average. OLN is not valued too expensively and it also shows 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.
OLN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years OLN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.18%, OLN perfoms like the industry average, outperforming 48.24% of the companies in the same industry.
With a Return On Equity value of -0.72%, OLN perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.52%, OLN is doing worse than 64.71% 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 6.72%.
The last Return On Invested Capital (2.52%) 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 | -0.18% | ||
| 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's Operating Margin of 2.99% is on the low side compared to the rest of the industry. OLN is outperformed by 69.41% of its industry peers.
In the last couple of years the Operating Margin of OLN has grown nicely.
Looking at the Gross Margin, with a value of 9.11%, OLN is doing worse than 82.35% of the companies in the same industry.
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 | 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
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.
Compared to 1 year ago, OLN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that OLN is in the distress zone and has some risk of bankruptcy.
OLN has a Altman-Z score (1.72) which is comparable to the rest of the industry.
The Debt to FCF ratio of OLN is 11.05, which is on the high side as it means it would take OLN, 11.05 years of fcf income to pay off all of its debts.
OLN has a better Debt to FCF ratio (11.05) than 61.18% 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's Debt to Equity ratio of 1.52 is on the low side compared to the rest of the industry. OLN is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.29
WACC8.71%
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.
OLN has a worse Current ratio (1.48) than 67.06% of its industry peers.
OLN has a Quick Ratio of 1.48. 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 Quick ratio of 0.88. This is in the lower half of the industry: OLN underperforms 72.94% 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 -94.17%.
OLN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.01% yearly.
The Revenue has been growing slightly by 1.49% in the past year.
The Revenue has been growing slightly by 1.37% on average over the past years.
EPS 1Y (TTM)-94.17%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-92.09%
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 33.95% yearly.
OLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.24% yearly.
EPS Next Y-49.29%
EPS Next 2Y23.05%
EPS Next 3Y33.95%
EPS Next 5YN/A
Revenue Next Year3.36%
Revenue Next 2Y3.86%
Revenue Next 3Y3.24%
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.
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 146.23 indicates a quite expensive valuation of OLN.
Based on the Price/Earnings ratio, OLN is valued a bit more expensive than 65.88% of the companies in the same industry.
When comparing the Price/Earnings ratio of OLN to the average of the S&P500 Index (27.03), we can say OLN is valued expensively.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of OLN can be described as reasonable.
Based on the Price/Forward Earnings ratio, OLN is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.28. OLN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 146.23 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
81.18% of the companies in the same industry are more expensive than OLN, based on the Enterprise Value to EBITDA ratio.
90.59% 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 | 8.03 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
A more expensive valuation may be justified as OLN's earnings are expected to grow with 33.95% in the coming years.
PEG (NY)N/A
PEG (5Y)16.23
EPS Next 2Y23.05%
EPS Next 3Y33.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.31%, OLN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.75, OLN pays a better dividend. On top of this OLN pays more dividend than 83.53% of the companies listed in the same industry.
OLN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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
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 2Y23.05%
EPS Next 3Y33.95%
19.01
+0.45 (+2.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.68%
Inst Owner Change-0.52%
Ins Owners0.39%
Ins Owner Change1.12%
Market Cap2.18B
Analysts67.62
Price Target24.28 (27.72%)
Short Float %4.88%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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)187.61%
Min EPS beat(2)159.11%
Max EPS beat(2)216.12%
EPS beat(4)3
Avg EPS beat(4)129.65%
Min EPS beat(4)-508.23%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)71.72%
EPS beat(12)10
Avg EPS beat(12)51.03%
EPS beat(16)13
Avg EPS beat(16)38.79%
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)-3.18%
PT rev (3m)-18.89%
EPS NQ rev (1m)-39.98%
EPS NQ rev (3m)-67.33%
EPS NY rev (1m)-15.53%
EPS NY rev (3m)-40.13%
Revenue NQ rev (1m)2.34%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 146.23 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.33 | ||
| P/FCF | 8.03 | ||
| P/OCF | 4.76 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.87 |
EPS(TTM)0.13
EY0.68%
EPS(NY)1.77
Fwd EY9.32%
FCF(TTM)2.37
FCFY12.45%
OCF(TTM)4
OCFY21.02%
SpS58.14
BVpS17.08
TBVpS-5.83
PEG (NY)N/A
PEG (5Y)16.23
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 | 1.72 |
F-Score5
WACC8.71%
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)-94.17%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-92.09%
EPS Next Y-49.29%
EPS Next 2Y23.05%
EPS Next 3Y33.95%
EPS Next 5YN/A
Revenue 1Y (TTM)1.49%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%6.95%
Revenue Next Year3.36%
Revenue Next 2Y3.86%
Revenue Next 3Y3.24%
Revenue Next 5YN/A
EBIT growth 1Y-62.23%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year125.97%
EBIT Next 3Y46.89%
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%