NYSE:OLN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued established dividend payer.

Risks

  • Olin has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Olin's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

NYSE:OLN

2.1%

US Chemicals

2.9%

US Market


1 Year Return

-46.8%

NYSE:OLN

-15.1%

US Chemicals

0.2%

US Market

OLN underperformed the Chemicals industry which returned -16.1% over the past year.

OLN underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

OLNIndustryMarket
7 Day-2.9%2.1%2.9%
30 Day-21.6%-4.8%-2.3%
90 Day-24.0%-0.4%3.1%
1 Year-44.8%-46.8%-1.7%-15.1%2.4%0.2%
3 Year-15.8%-23.2%34.8%10.0%41.7%32.4%
5 Year-28.6%-39.6%31.1%2.4%55.1%37.9%

Price Volatility Vs. Market

How volatile is Olin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Olin undervalued based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Olin's share price is below the future cash flow value, and at a moderate discount (> 20%).

Olin's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Olin is good value based on earnings compared to the US Chemicals industry average.

Olin is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Olin is good value based on expected growth next year.


Price Based on Value of Assets

Olin is good value based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Olin expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Olin's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Olin's earnings are expected to grow significantly at over 20% yearly.

Olin's revenue growth is positive but not above the United States of America market average.

Olin's earnings growth is expected to exceed the United States of America market average.

Olin's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Olin is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Olin performed over the past 5 years?

44.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Olin has delivered over 20% year on year earnings growth in the past 5 years.

Olin's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Olin's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

Olin has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Olin used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Olin has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Olin's financial position?


Financial Position Analysis

Olin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Olin's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Olin's level of debt (116.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (61.3% vs 116.8% today).

Debt is well covered by operating cash flow (27.2%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

4.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Olin's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Olin's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

No dividend growth in 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of Olin's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

John Fischer (63yo)

3.3yrs

Tenure

US$6,340,343

Compensation

Mr. John E. Fischer has been the President of Olin Corporation since May 4, 2014 and has been its Chairman of the Board and Chief Executive Officer since April 27, 2017 and May 1, 2016 respectively. Mr. Fi ...


CEO Compensation Analysis

John's remuneration is about average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

61.5yo

Average Age

The tenure for the Olin management team is about average.


Board Age and Tenure

7.2yrs

Average Tenure

64yo

Average Age

The tenure for the Olin board of directors is about average.


Insider Trading

Olin individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$85,00014 Aug 19
Vincent Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$17.00
BuyUS$4,07713 Aug 19
Teresa Vermillion
EntityIndividual
Shares230
Max PriceUS$17.80
BuyUS$178,49009 Aug 19
C. Bunch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$17.85
BuyUS$10,87209 Aug 19
Teresa Vermillion
EntityIndividual
Shares600
Max PriceUS$18.25
BuyUS$4,47908 Aug 19
Earl Shipp
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$17.92
SellUS$435,79723 May 19
John McIntosh
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Synergies & Systems
Shares19,335
Max PriceUS$22.54
SellUS$228,24920 May 19
John McIntosh
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Synergies & Systems
Shares10,500
Max PriceUS$21.74
BuyUS$165,67810 May 19
Scott Sutton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$20.71
BuyUS$147,15207 May 19
Scott Sutton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$21.02
BuyUS$99,22021 Nov 18
John Sampson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Business Operations
Shares5,000
Max PriceUS$19.84
BuyUS$12,41814 Nov 18
Earl Shipp
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares600
Max PriceUS$20.70
BuyUS$24,92814 Nov 18
Randall Larrimore
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceUS$20.77
BuyUS$546,75006 Nov 18
Donald Bogus
EntityIndividual
Shares25,000
Max PriceUS$21.87
BuyUS$324,30005 Nov 18
Scott Sutton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$21.62

Ownership Breakdown


Management Team

  • Eric Blanchard (62yo)

    VP, General Counsel & Secretary

    • Tenure: 2.4yrs
  • John McIntosh (64yo)

    Executive Vice President of Synergies & Systems

    • Tenure: 8.8yrs
    • Compensation: US$1.97m
  • Todd Slater (55yo)

    VP & CFO

    • Tenure: 5.3yrs
    • Compensation: US$2.08m
  • John Fischer (63yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$6.34m
  • Larry Kromidas

    Director of Investor Relations & Assistant Treasurer

    • Tenure: 13.8yrs
  • Pat Dawson (62yo)

    Executive VP and President of Epoxy & International

    • Tenure: 3.8yrs
    • Compensation: US$3.77m
  • Jim Varilek (61yo)

    Executive VP & COO

    • Tenure: 0.3yrs
    • Compensation: US$2.47m
  • John Sampson (58yo)

    Senior Vice President of Business Operations

    • Tenure: 0.0yrs
  • Valerie Peters (55yo)

    Vice President of Human Resources

    • Tenure: 1.6yrs
  • Logan Bonacorsi

    Director of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • John Michael O’Connor (64yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$259.99k
  • Randy Larrimore (72yo)

    Independent Director

    • Tenure: 21.6yrs
    • Compensation: US$290.74k
  • Bob Bunch (64yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$267.70k
  • Vince Smith (69yo)

    Independent Director

    • Tenure: 11.0yrs
    • Compensation: US$259.99k
  • John Fischer (63yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$6.34m
  • Bill Weideman (65yo)

    Lead Director

    • Tenure: 1.3yrs
    • Compensation: US$311.03k
  • Gray Benoist (66yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$260.46k
  • Earl Shipp (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$256.18k
  • Scott Sutton (54yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$96.63k
  • Carol Williams (61yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$263.19k

Company Information

Olin Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Olin Corporation
  • Ticker: OLN
  • Exchange: NYSE
  • Founded: 1892
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$2.683b
  • Shares outstanding: 164.30m
  • Website: https://www.olin.com

Number of Employees


Location

  • Olin Corporation
  • 190 Carondelet Plaza
  • Suite 1530
  • Clayton
  • Missouri
  • 63105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OLNNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1974
OLNDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1974

Biography

Olin Corporation manufactures and distributes chemical products in the United States and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Ch ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:40
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.