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. While OLN is still in line with the averages on profitability rating, there are concerns on its financial health. OLN has a decent growth rate and is not valued too expensively.
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.
OLN had positive earnings in 4 of the past 5 years.
OLN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OLN has a Return On Assets (1.43%) which is in line with its industry peers.
With a Return On Equity value of 5.37%, OLN perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
OLN has a Return On Invested Capital of 4.69%. This is comparable to the rest of the industry: OLN outperforms 51.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OLN is above the industry average of 7.09%.
The 3 year average ROIC (11.96%) for OLN is well above the current ROIC(4.69%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.37% | ||
| ROIC | 4.69% |
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 1.66%. This is comparable to the rest of the industry: OLN outperforms 47.06% of its industry peers.
OLN's Profit Margin has declined in the last couple of years.
OLN's Operating Margin of 5.50% is on the low side compared to the rest of the industry. OLN is outperformed by 63.53% of its industry peers.
OLN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.74%, OLN is doing worse than 76.47% of the companies in the same industry.
OLN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 1.66% | ||
| GM | 11.74% |
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
The number of shares outstanding for OLN has been reduced compared to 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 1.79. This is a bad value and indicates that OLN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.79, OLN is in line with its industry, outperforming 51.76% of the companies in the same industry.
The Debt to FCF ratio of OLN is 9.22, which is on the high side as it means it would take OLN, 9.22 years of fcf income to pay off all of its debts.
OLN's Debt to FCF ratio of 9.22 is fine compared to the rest of the industry. OLN outperforms 62.35% of its industry peers.
OLN has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
OLN has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: OLN underperforms 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.22 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.55
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.27 indicates that OLN should not have too much problems paying its short term obligations.
OLN has a worse Current ratio (1.27) than 75.29% of its industry peers.
OLN has a Quick Ratio of 1.27. This is a bad value and indicates that OLN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.77, OLN is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
OLN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.55%.
The Earnings Per Share has been growing by 9.01% on average over the past years. This is quite good.
The Revenue has decreased by -4.29% in the past year.
OLN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.37% yearly.
EPS 1Y (TTM)-68.55%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-21.74%
Revenue 1Y (TTM)-4.29%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%3.51%
3.2 Future
Based on estimates for the next years, OLN will show a very strong growth in Earnings Per Share. The EPS will grow by 45.35% on average per year.
The Revenue is expected to grow by 3.81% on average over the next years.
EPS Next Y-15.31%
EPS Next 2Y42.82%
EPS Next 3Y45.35%
EPS Next 5YN/A
Revenue Next Year3.69%
Revenue Next 2Y4.17%
Revenue Next 3Y3.81%
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
Based on the Price/Earnings ratio of 18.50, the valuation of OLN can be described as rather expensive.
OLN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of OLN to the average of the S&P500 Index (27.85), we can say OLN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 21.85, OLN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OLN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.77. OLN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 21.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLN is valued cheaper than 87.06% of the companies in the same industry.
85.88% 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 | 8.09 | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
OLN's earnings are expected to grow with 45.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.05
EPS Next 2Y42.82%
EPS Next 3Y45.35%
5. Dividend
5.1 Amount
OLN has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
The stock price of OLN dropped by -26.08% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
OLN's Dividend Yield is rather good when compared to the industry average which is at 3.79. OLN pays more dividend than 81.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, OLN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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
OLN pays out 86.74% of its income as dividend. This is not a sustainable payout ratio.
DP86.74%
EPS Next 2Y42.82%
EPS Next 3Y45.35%
21.65
+0.03 (+0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.37%
Inst Owner Change-0.91%
Ins Owners0.3%
Ins Owner Change0.83%
Market Cap2.49B
Analysts67.83
Price Target30.6 (41.34%)
Short Float %4.23%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.05%
DP86.74%
Div Incr Years0
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)71.68%
Min EPS beat(2)-508.23%
Max EPS beat(2)651.59%
EPS beat(4)2
Avg EPS beat(4)40.11%
Min EPS beat(4)-508.23%
Max EPS beat(4)651.59%
EPS beat(8)6
Avg EPS beat(8)27.02%
EPS beat(12)10
Avg EPS beat(12)20.91%
EPS beat(16)13
Avg EPS beat(16)19.7%
Revenue beat(2)1
Avg Revenue beat(2)3.38%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)6.79%
Revenue beat(4)1
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)6.79%
Revenue beat(8)2
Avg Revenue beat(8)-2.45%
Revenue beat(12)3
Avg Revenue beat(12)-2.47%
Revenue beat(16)5
Avg Revenue beat(16)-1.73%
PT rev (1m)-14.29%
PT rev (3m)-35.17%
EPS NQ rev (1m)-16.57%
EPS NQ rev (3m)-118.94%
EPS NY rev (1m)-15.73%
EPS NY rev (3m)-63.5%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 21.85 | ||
| P/S | 0.38 | ||
| P/FCF | 8.09 | ||
| P/OCF | 4.95 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.87 |
EPS(TTM)1.17
EY5.4%
EPS(NY)0.99
Fwd EY4.58%
FCF(TTM)2.68
FCFY12.37%
OCF(TTM)4.37
OCFY20.2%
SpS56.83
BVpS17.58
TBVpS-5.69
PEG (NY)N/A
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 5.37% | ||
| ROCE | 6.05% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 9.01% | ||
| OM | 5.5% | ||
| PM (TTM) | 1.66% | ||
| GM | 11.74% | ||
| FCFM | 4.71% |
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-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.22 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 37.66% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 1.99 | ||
| Cash Conversion | 57.31% | ||
| Profit Quality | 283.7% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.79 |
F-Score4
WACC8.46%
ROIC/WACC0.55
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)-68.55%
EPS 3Y-47.49%
EPS 5Y9.01%
EPS Q2Q%-21.74%
EPS Next Y-15.31%
EPS Next 2Y42.82%
EPS Next 3Y45.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.29%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%3.51%
Revenue Next Year3.69%
Revenue Next 2Y4.17%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y-55.54%
EBIT growth 3Y-42.31%
EBIT growth 5Y7.27%
EBIT Next Year173.84%
EBIT Next 3Y55.09%
EBIT Next 5YN/A
FCF growth 1Y-58.27%
FCF growth 3Y-41.52%
FCF growth 5Y5.87%
OCF growth 1Y-48.35%
OCF growth 3Y-33.88%
OCF growth 5Y-4%