OLIN CORP (OLN)
US6806652052 - Common Stock
Taking everything into account, OLN scores 5 out of 10 in our fundamental rating. OLN was compared to 84 industry peers in the Chemicals industry. While OLN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OLN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year OLN was profitable.
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.
Each year in the past 5 years OLN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OLN (4.63%) is better than 64.29% of its industry peers.
OLN has a Return On Equity of 16.23%. This is in the better half of the industry: OLN outperforms 76.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.22%, OLN is in the better half of the industry, outperforming 72.62% 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 7.50%.
The 3 year average ROIC (18.05%) for OLN is well above the current ROIC(8.22%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 16.23% | ||
| ROIC | 8.22% |
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
Looking at the Profit Margin, with a value of 5.32%, OLN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
OLN's Profit Margin has improved in the last couple of years.
OLN has a Operating Margin of 9.61%. This is comparable to the rest of the industry: OLN outperforms 52.38% 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 14.96%, OLN is doing worse than 72.62% of the companies in the same industry.
OLN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.61% | ||
| PM (TTM) | 5.32% | ||
| GM | 14.96% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OLN is creating value.
OLN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OLN has less shares outstanding
The debt/assets ratio for OLN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.39 indicates that OLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
OLN has a better Altman-Z score (2.39) than 60.71% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.46, OLN is doing good in 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 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.01
WACC8.17%
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.
OLN has a Current ratio of 1.38. This is amonst the worse of the industry: OLN underperforms 80.95% of its industry peers.
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.
OLN's Quick ratio of 0.80 is on the low side compared to the rest of the industry. OLN is outperformed by 84.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for OLN have decreased strongly by -66.88% 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)-66.88%
EPS 3YN/A
EPS 5Y17.66%
EPS growth Q2Q-73.33%
Revenue 1Y (TTM)-24.38%
Revenue growth 3Y5.87%
Revenue growth 5Y-0.33%
Revenue growth 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 23.82% yearly.
OLN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y1.39%
EPS Next 2Y29.14%
EPS Next 3Y23.82%
EPS Next 5YN/A
Revenue Next Year4.68%
Revenue Next 2Y5.78%
Revenue Next 3Y4.17%
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 19.87 indicates a rather expensive valuation of OLN.
The rest of the industry has a similar Price/Earnings ratio as OLN.
The average S&P500 Price/Earnings ratio is at 24.55. OLN is around the same levels.
Based on the Price/Forward Earnings ratio of 8.39, the valuation of OLN can be described as reasonable.
Based on the Price/Forward Earnings ratio, OLN is valued cheaper than 96.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.92. OLN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than OLN, based on the Enterprise Value to EBITDA ratio.
OLN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OLN is cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of OLN may justify a higher PE ratio.
OLN's earnings are expected to grow with 23.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)14.3
PEG (5Y)1.13
EPS Next 2Y29.14%
EPS Next 3Y23.82%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.31, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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 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 Years19
5.3 Sustainability
OLN pays out 28.00% of its income as dividend. This is a sustainable payout ratio.
DP28%
EPS Next 2Y29.14%
EPS Next 3Y23.82%
OLIN CORP
NYSE:OLN (5/1/2024, 7:14:17 PM)
After market: 52.06 0 (0%)52.06
-0.22 (-0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 8.39 | ||
| 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)14.3
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 16.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.61% | ||
| PM (TTM) | 5.32% | ||
| GM | 14.96% | ||
| 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)
Growth
EPS 1Y (TTM)-66.88%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y1.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.38%
Revenue growth 3Y5.87%
Revenue growth 5Y
Revenue growth 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