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OLN

Olin NYSE:OLN Stock Report

Last Price

US$52.87

Market Cap

US$7.7b

7D

1.1%

1Y

13.8%

Updated

06 Aug, 2022

Data

Company Financials +
OLN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends3/6

OLN Stock Overview

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

Olin Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Olin
Historical stock prices
Current Share PriceUS$52.87
52 Week HighUS$67.25
52 Week LowUS$43.02
Beta1.33
1 Month Change11.00%
3 Month Change-16.61%
1 Year Change13.80%
3 Year Change199.21%
5 Year Change81.19%
Change since IPO77.34%

Recent News & Updates

Jul 28

Olin announces $2B stock buyback plan

Olin (NYSE:OLN) has announced a new share repurchase program to buyback $2B of its common stock (2022 share repurchase program). The program has no time limit. The authorization remaining available under the 2021 share repurchase program is not affected by the authorization of the 2022 Share Repurchase Program. In Q2, the company bought back ~7.4M shares at a cost of $426.5M; approximately 12.6M shares were repurchased in first half 2022. In other news, Olin (OLN) reported Q2 results today

Shareholder Returns

OLNUS ChemicalsUS Market
7D1.1%-0.8%1.0%
1Y13.8%-7.6%-12.9%

Return vs Industry: OLN exceeded the US Chemicals industry which returned -7.6% over the past year.

Return vs Market: OLN exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is OLN's price volatile compared to industry and market?
OLN volatility
OLN Average Weekly Movement6.2%
Chemicals Industry Average Movement7.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

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
18927,750Scott 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, 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$1.51b
Revenue (TTM)US$9.85b

5.1x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OLN income statement (TTM)
RevenueUS$9.85b
Cost of RevenueUS$7.24b
Gross ProfitUS$2.61b
Other ExpensesUS$1.10b
EarningsUS$1.51b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)10.42
Gross Margin26.49%
Net Profit Margin15.36%
Debt/Equity Ratio103.1%

How did OLN perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

8%

Payout Ratio

Does OLN pay a reliable dividends?

See OLN dividend history and benchmarks
When do you need to buy OLN by to receive an upcoming dividend?
Olin dividend dates
Ex Dividend DateAug 09 2022
Dividend Pay DateSep 09 2022
Days until Ex dividend1 day
Days until Dividend pay date32 days

Does OLN pay a reliable dividends?

See OLN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is OLN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OLN?

Other financial metrics that can be useful for relative valuation.

OLN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA3.7x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

How does OLN's PE Ratio compare to its peers?

OLN PE Ratio vs Peers
The above table shows the PE ratio for OLN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.8x
VVV Valvoline
11.7xn/aUS$5.1b
WLK Westlake
4.2x-17.2%US$12.1b
CBT Cabot
31.2x43.6%US$4.1b
TROX Tronox Holdings
4.1x5.9%US$2.4b
OLN Olin
5.1x-9.8%US$7.7b

Price-To-Earnings vs Peers: OLN is good value based on its Price-To-Earnings Ratio (5.1x) compared to the peer average (12.8x).


Price to Earnings Ratio vs Industry

How does OLN's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: OLN is good value based on its Price-To-Earnings Ratio (5.1x) compared to the US Chemicals industry average (15.6x)


Price to Earnings Ratio vs Fair Ratio

What is OLN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OLN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.1x
Fair PE Ratio11.3x

Price-To-Earnings vs Fair Ratio: OLN is good value based on its Price-To-Earnings Ratio (5.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).


Share Price vs Fair Value

What is the Fair Price of OLN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OLN ($52.87) is trading below our estimate of fair value ($164.88)

Significantly Below Fair Value: OLN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Olin forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-9.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OLN's earnings are forecast to decline over the next 3 years (-9.8% per year).

Earnings vs Market: OLN's earnings are forecast to decline over the next 3 years (-9.8% per year).

High Growth Earnings: OLN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OLN's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: OLN's revenue is forecast to decline over the next 3 years (-4.5% 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 (42.3%).


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Past Performance

How has Olin performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.1%

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's earnings have grown by 12.1% per year over the past 5 years.

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 (18.6%).


Return on Equity

High ROE: Whilst OLN's Return on Equity (56.1%) is outstanding, this metric is skewed due to their high level of debt.


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Financial Health

How is Olin's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: OLN's short term assets ($2.7B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: OLN's short term assets ($2.7B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: OLN's net debt to equity ratio (91.8%) is considered high.

Reducing Debt: OLN's debt to equity ratio has reduced from 160.4% to 103.1% over the past 5 years.

Debt Coverage: OLN's debt is well covered by operating cash flow (71.7%).

Interest Coverage: OLN's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


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Dividend

What is Olin current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.51%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 07 2022Ex Dividend DateAug 09 2022Dividend Pay DateSep 09 202231 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: OLN's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: OLN's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.2%), OLN's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (6.5%), OLN's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Scott Sutton (57 yo)

1.92yrs

Tenure

US$10,105,293

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. From December 2019 to July 2020, he s...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD10.11M) is about average for companies of similar size in the US market ($USD8.35M).

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 (3.6 years average tenure).


Board Members

Experienced Board: OLN's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OLN insiders have only sold shares 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$7.674b
  • Shares outstanding: 145.14m
  • 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 Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.