| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 4/6 |
OLN Stock Overview
Olin Corporation manufactures and distributes chemical products in the United States, Europe, and internationally.
Olin Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$48.14 |
| 52 Week High | US$64.76 |
| 52 Week Low | US$22.76 |
| Beta | 1.38 |
| 1 Month Change | -15.05% |
| 3 Month Change | -14.65% |
| 1 Year Change | 85.65% |
| 3 Year Change | 102.87% |
| 5 Year Change | 80.37% |
| Change since IPO | 61.48% |
Recent News & Updates
Olin: From Price Taker To Price Maker
A wise man once said to me adopting marginal pricing inevitably results in a marginal business. Olin have been getting rid of marginal businesses under long-term index pricing contracts and replacing with negotiated business at higher margins - price ahead of volume. Low-profit margin segments of the business have been closed down, incurring large impairment charges, and reducing supply. The company has old world products finding a new life in an age of renewables, electric vehicles, wind turbine blades, and other products requiring greater strength with less weight. The resulting impact on product pricing and earnings has been impressive and appears likely to be enduring, with demand projected to exceed supply in the longer term.
Why Olin Corporation (NYSE:OLN) Could Be Worth Watching
Olin Corporation ( NYSE:OLN ), might not be a large cap stock, but it led the NYSE gainers with a relatively large...
Olin Corporation: A Must Have Growth Stock
As early as 2018, 43% of Olin Corporation's sales were attributed to international operations including Europe, Latin America, and Asia. Over the past three years, OLN’s market cap has grown by more than 160% to exceed $8 billion. By December 2022, Olin expects a 62.15% revenue surge to $9.34 billion from $5.76 billion realized in Q4 2020. Already, Olin is at the undervalued zone.
Olin (NYSE:OLN) Is Achieving High Returns On Its Capital
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...
Shareholder Returns
| OLN | US Chemicals | US Market | |
|---|---|---|---|
| 7D | -13.2% | -6.0% | -6.1% |
| 1Y | 85.7% | 9.8% | 4.2% |
Return vs Industry: OLN exceeded the US Chemicals industry which returned 9.8% over the past year.
Return vs Market: OLN exceeded the US Market which returned 4.2% over the past year.
Price Volatility
| OLN volatility | |
|---|---|
| OLN Average Weekly Movement | 6.4% |
| Chemicals Industry Average Movement | 5.7% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: OLN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: OLN's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1892 | 8,000 | Scott Sutton | https://www.olin.com |
Olin Corporation manufactures and distributes chemical products in the United States, Europe, and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, chlorinated organics intermediates and solvents, and sodium hypochlorite.
Olin Fundamentals Summary
| OLN fundamental statistics | |
|---|---|
| Market Cap | US$7.67b |
| Earnings (TTM) | US$957.10m |
| Revenue (TTM) | US$8.13b |
8.0x
P/E Ratio0.9x
P/S RatioIs OLN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OLN income statement (TTM) | |
|---|---|
| Revenue | US$8.13b |
| Cost of Revenue | US$6.28b |
| Gross Profit | US$1.86b |
| Expenses | US$901.90m |
| Earnings | US$957.10m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
| Earnings per share (EPS) | 6.01 |
| Gross Margin | 22.85% |
| Net Profit Margin | 11.77% |
| Debt/Equity Ratio | 126.7% |
How did OLN perform over the long term?
See historical performance and comparisonDividends
1.7%
Current Dividend Yield13%
Payout RatioValuation
Is Olin undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OLN ($48.14) is trading below our estimate of fair value ($280.25)
Significantly Below Fair Value: OLN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OLN is good value based on its PE Ratio (8x) compared to the US Chemicals industry average (20.3x).
PE vs Market: OLN is good value based on its PE Ratio (8x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: OLN is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: OLN is overvalued based on its PB Ratio (3.2x) compared to the US Chemicals industry average (2.4x).
Future Growth
How is Olin forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
3.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OLN's forecast earnings growth (3.8% per year) is above the savings rate (2%).
Earnings vs Market: OLN's earnings (3.8% per year) are forecast to grow slower than the US market (12.9% per year).
High Growth Earnings: OLN's earnings are forecast to grow, but not significantly.
Revenue vs Market: OLN's revenue (1.5% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: OLN's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OLN's Return on Equity is forecast to be very high in 3 years time (43.8%).
Past Performance
How has Olin performed over the past 5 years?
-27.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OLN has high quality earnings.
Growing Profit Margin: OLN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: OLN has become profitable over the past 5 years, growing earnings by -27.7% per year.
Accelerating Growth: OLN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: OLN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (17.5%).
Return on Equity
High ROE: Whilst OLN's Return on Equity (40.08%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Olin's financial position?
Financial Position Analysis
Short Term Liabilities: OLN's short term assets ($2.3B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: OLN's short term assets ($2.3B) do not cover its long term liabilities ($4.7B).
Debt to Equity History and Analysis
Debt Level: OLN's net debt to equity ratio (113.8%) is considered high.
Reducing Debt: OLN's debt to equity ratio has reduced from 157.7% to 126.7% over the past 5 years.
Debt Coverage: OLN's debt is well covered by operating cash flow (45.1%).
Interest Coverage: OLN's interest payments on its debt are well covered by EBIT (5x coverage).
Balance Sheet
Dividend
What is Olin current dividend yield, its reliability and sustainability?
1.66%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OLN's dividend (1.66%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: OLN's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (3.61%).
Stability and Growth of Payments
Stable Dividend: OLN's dividends per share have been stable in the past 10 years.
Growing Dividend: OLN's dividend payments have not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.3%), OLN's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OLN's dividends in 3 years are forecast to be thoroughly covered by earnings (9.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Scott Sutton (56 yo)
1.33yrs
Tenure
US$2,146,019
Compensation
Mr. Scott McDougald Sutton serves as President and Chief Executive Officer at Olin Corporation since September 1, 2020 and serves as its Chairman since April 22, 2021. He serves as President and Chief Exec...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD2.15M) is below average for companies of similar size in the US market ($USD6.48M).
Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: OLN's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: OLN's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: OLN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Olin Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Olin Corporation
- Ticker: OLN
- Exchange: NYSE
- Founded: 1892
- Industry: Commodity Chemicals
- Sector: Materials
- Implied Market Cap: US$7.672b
- Shares outstanding: 159.38m
- Website: https://www.olin.com
Number of Employees
Location
- Olin Corporation
- 190 Carondelet Plaza
- Suite 1530
- Clayton
- Missouri
- 63105
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 23:25 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.