OLIN CORP (OLN)

US6806652052 - Common Stock

49.49  -0.2 (-0.4%)

After market: 49.49 0 (0%)

Fundamental Rating

5

OLN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. While OLN has a great profitability rating, there are some minor concerns on its financial health. OLN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.



7

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.
In multiple years OLN reported negative net income over the last 5 years.
In the past 5 years OLN always reported a positive cash flow from operatings.

1.2 Ratios

OLN has a better Return On Assets (4.64%) than 73.81% of its industry peers.
OLN has a better Return On Equity (16.27%) than 79.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.29%, OLN is in the better half of the industry, outperforming 76.19% 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 6.70%.
The 3 year average ROIC (18.05%) for OLN is well above the current ROIC(8.29%). The reason for the recent decline needs to be investigated.
Industry RankSector 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 64.29% of the companies in the same industry.
OLN's Profit Margin has improved in the last couple of years.
OLN's Operating Margin of 9.70% is in line compared to the rest of the industry. OLN outperforms 55.95% of its industry peers.
OLN's Operating Margin has improved in the last couple of years.
The Gross Margin of OLN (15.04%) is worse than 72.62% of its industry peers.
OLN's Gross Margin has improved in the last couple of years.
Industry RankSector 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%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OLN is creating value.
Compared to 1 year ago, OLN has less shares outstanding
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 2.36 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 2.36, OLN is in the better half of the industry, outperforming 65.48% of the companies in the same industry.
The Debt to FCF ratio of OLN is 3.46, which is a good value as it means it would take OLN, 3.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.46, OLN is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
A Debt/Equity ratio of 1.24 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 1.24, OLN is doing worse than 73.81% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.24
Debt/FCF 3.46
Altman-Z 2.36
ROIC/WACC1.03
WACC8.05%

2.3 Liquidity

OLN has a Current Ratio of 1.38. This is a normal value and indicates that OLN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.38, OLN is doing worse than 83.33% of the companies in the same industry.
OLN has a Quick Ratio of 1.38. This is a bad value and indicates that OLN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.80, OLN is not doing good in the industry: 84.52% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 0.8

4

3. Growth

3.1 Past

The earnings per share for OLN have decreased strongly by -65.99% 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 17.66% on average per year.
OLN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.38%.
Measured over the past years, OLN shows a decrease in Revenue. The Revenue has been decreasing by -0.33% on average per year.
EPS 1Y (TTM)-65.99%
EPS 3YN/A
EPS 5Y17.66%
EPS Q2Q%-68.67%
Revenue 1Y (TTM)-24.38%
Revenue growth 3Y5.87%
Revenue growth 5Y-0.33%
Sales Q2Q%-11.33%

3.2 Future

OLN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.85% yearly.
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

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.

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.40, the valuation of OLN can be described as rather expensive.
67.86% of the companies in the same industry are more expensive than OLN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.73. OLN is valued slightly cheaper when compared to this.
OLN is valuated reasonably with a Price/Forward Earnings ratio of 8.36.
Based on the Price/Forward Earnings ratio, OLN is valued cheaper than 88.10% of the companies in the same industry.
OLN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.21.
Industry RankSector Rank
PE 18.4
Fwd PE 8.36

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 83.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OLN indicates a rather cheap valuation: OLN is cheaper than 91.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.4
EV/EBITDA 7.32

4.3 Compensation for Growth

The decent profitability rating of OLN may justify a higher PE ratio.
OLN's earnings are expected to grow with 25.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y26.12%
EPS Next 3Y25.85%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.56%, OLN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.13, OLN has a dividend in line with its industry peers.
OLN's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
Industry RankSector Rank
Dividend Yield 1.56%

5.2 History

The dividend of OLN decreases each year by -0.10%.
OLN has paid a dividend for at least 10 years, which is a reliable track record.
OLN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.1%
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 (6/18/2024, 7:04:00 PM)

After market: 49.49 0 (0%)

49.49

-0.2 (-0.4%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.91B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.56%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue 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)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.4
Fwd PE 8.36
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)1.04
Profitability
Industry RankSector 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 RankSector 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)-65.99%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-2.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.38%
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