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OLN

OlinNYSE:OLN Stock Report

Last Price

US$48.14

Market Cap

US$7.7b

7D

-13.2%

1Y

85.7%

Updated

22 Jan, 2022

Data

Company Financials +
OLN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends4/6

OLN Stock Overview

Olin Corporation manufactures and distributes chemical products in the United States, Europe, and internationally.

Olin Competitors

Westlake Chemical

NYSE:WLK

US$12.5b

Cabot

NYSE:CBT

US$3.2b

3M

NYSE:MMM

US$99.5b

Sherwin-Williams

NYSE:SHW

US$76.2b

Price History & Performance

Summary of all time highs, changes and price drops for Olin
Historical stock prices
Current Share PriceUS$48.14
52 Week HighUS$64.76
52 Week LowUS$22.76
Beta1.38
1 Month Change-15.05%
3 Month Change-14.65%
1 Year Change85.65%
3 Year Change102.87%
5 Year Change80.37%
Change since IPO61.48%

Recent News & Updates

Dec 30

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.

Dec 27
Why Olin Corporation (NYSE:OLN) Could Be Worth Watching

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...

Dec 22

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.

Nov 22
Olin (NYSE:OLN) Is Achieving High Returns On Its Capital

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

OLNUS ChemicalsUS Market
7D-13.2%-6.0%-6.1%
1Y85.7%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

Is OLN's price volatile compared to industry and market?
OLN volatility
OLN Average Weekly Movement6.4%
Chemicals Industry Average Movement5.7%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
18928,000Scott Suttonhttps://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

How do Olin's earnings and revenue compare to its market cap?
OLN fundamental statistics
Market CapUS$7.67b
Earnings (TTM)US$957.10m
Revenue (TTM)US$8.13b

8.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OLN income statement (TTM)
RevenueUS$8.13b
Cost of RevenueUS$6.28b
Gross ProfitUS$1.86b
ExpensesUS$901.90m
EarningsUS$957.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)6.01
Gross Margin22.85%
Net Profit Margin11.77%
Debt/Equity Ratio126.7%

How did OLN perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

13%

Payout Ratio

Valuation

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

  • Explore strong dividend paying companies in the Materials industry.

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:25
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.