OLIN CORP (OLN) Stock Fundamental Analysis
NYSE:OLN - US6806652052 - Common Stock
23.53 USD
-0.13 (-0.55%)
23.8399 USD
+0.31 (+1.32%)
We assign a fundamental rating of 4 out of 10 to OLN. OLN was compared to 83 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 not valued too expensively and it also shows a decent 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.
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's Return On Assets of -0.18% is in line compared to the rest of the industry. OLN outperforms 48.19% of its industry peers.
With a Return On Equity value of -0.72%, OLN perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
The Return On Invested Capital of OLN (2.52%) is worse than 60.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OLN is significantly above the industry average of 6.34%.
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.
Looking at the Operating Margin, with a value of 2.99%, OLN is doing worse than 68.67% of the companies in the same industry.
In the last couple of years the Operating Margin of OLN has grown nicely.
OLN's Gross Margin of 9.11% is on the low side compared to the rest of the industry. OLN is outperformed by 81.93% 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 | 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.
The number of shares outstanding for OLN has been reduced compared to 1 year ago.
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
OLN has an Altman-Z score of 1.77. This is a bad value and indicates that OLN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.77, OLN perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
OLN has a debt to FCF ratio of 11.05. This is a negative value and a sign of low solvency as OLN would need 11.05 years to pay back of all of its debts.
OLN has a Debt to FCF ratio of 11.05. This is in the better half of the industry: OLN outperforms 62.65% 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.
With a Debt to Equity ratio value of 1.52, OLN is not doing good in the industry: 75.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.28
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.48 indicates that OLN should not have too much problems paying its short term obligations.
OLN has a Current ratio of 1.48. This is in the lower half of the industry: OLN underperforms 71.08% of its industry peers.
A Quick Ratio of 0.88 indicates that OLN may have some problems paying its short term obligations.
OLN has a Quick ratio of 0.88. This is in the lower half of the industry: OLN underperforms 73.49% 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%.
The Earnings Per Share has been growing by 9.01% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.49% in the past year.
Measured over the past years, OLN shows a small growth in Revenue. The Revenue has been growing by 1.37% on average per year.
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 24.06% yearly.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y-86.18%
EPS Next 2Y7.43%
EPS Next 3Y24.06%
EPS Next 5YN/A
Revenue Next Year6.62%
Revenue Next 2Y4.76%
Revenue Next 3Y4.18%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
OLN is valuated quite expensively with a Price/Earnings ratio of 181.00.
Compared to the rest of the industry, the Price/Earnings ratio of OLN indicates a slightly more expensive valuation: OLN is more expensive than 67.47% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.90. OLN is valued rather expensively when compared to this.
OLN is valuated rather expensively with a Price/Forward Earnings ratio of 17.43.
OLN's Price/Forward Earnings is on the same level as the industry average.
OLN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 181 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OLN indicates a somewhat cheap valuation: OLN is cheaper than 75.90% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OLN is valued cheaper than 87.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
A more expensive valuation may be justified as OLN's earnings are expected to grow with 24.06% in the coming years.
PEG (NY)N/A
PEG (5Y)20.08
EPS Next 2Y7.43%
EPS Next 3Y24.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, OLN has a reasonable but not impressive dividend return.
OLN's Dividend Yield is rather good when compared to the industry average which is at 3.44. OLN pays more dividend than 81.93% of the companies 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 | 3.5% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.05%
Div Incr Years0
Div Non Decr Years24
5.3 Sustainability
OLN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-656.74%
EPS Next 2Y7.43%
EPS Next 3Y24.06%
23.53
-0.13 (-0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.88%
Inst Owner Change1.33%
Ins Owners0.42%
Ins Owner Change1.31%
Market Cap2.70B
Analysts67.62
Price Target24.28 (3.19%)
Short Float %6.77%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)-2.19%
PT rev (3m)-18.86%
EPS NQ rev (1m)-48.78%
EPS NQ rev (3m)-83.27%
EPS NY rev (1m)-72.75%
EPS NY rev (3m)-80.69%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)3.15%
Revenue NY rev (3m)2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 181 | ||
| Fwd PE | 17.43 | ||
| P/S | 0.4 | ||
| P/FCF | 9.94 | ||
| P/OCF | 5.89 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.61 |
EPS(TTM)0.13
EY0.55%
EPS(NY)1.35
Fwd EY5.74%
FCF(TTM)2.37
FCFY10.06%
OCF(TTM)4
OCFY16.98%
SpS58.14
BVpS17.08
TBVpS-5.83
PEG (NY)N/A
PEG (5Y)20.08
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 | 1.77 |
F-Score5
WACC8.86%
ROIC/WACC0.28
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-86.18%
EPS Next 2Y7.43%
EPS Next 3Y24.06%
EPS Next 5YN/A
Revenue 1Y (TTM)1.49%
Revenue growth 3Y-9.8%
Revenue growth 5Y1.37%
Sales Q2Q%6.95%
Revenue Next Year6.62%
Revenue Next 2Y4.76%
Revenue Next 3Y4.18%
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%