NYSE:OLN

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 36.2% below its fair value

Earnings are forecast to grow 127.97% per year

Pays a reliable dividend of 4.48%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.48% is not well covered by earnings



Snowflake Analysis

Average dividend payer and fair value.


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

Stable Share Price: OLN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.2%

OLN

1.6%

US Chemicals

1.5%

US Market


1 Year Return

-32.3%

OLN

-3.7%

US Chemicals

20.1%

US Market

Return vs Industry: OLN underperformed the US Chemicals industry which returned -3.7% over the past year.

Return vs Market: OLN underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

OLNIndustryMarket
7 Day11.2%1.6%1.5%
30 Day0%-1.2%1.4%
90 Day2.1%0.2%8.7%
1 Year-29.3%-32.3%10.1%-3.7%22.7%20.1%
3 Year-36.2%-42.2%29.9%5.2%50.1%40.5%
5 Year-23.8%-36.0%38.3%8.3%73.1%54.1%

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 compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OLN ($17.85) is trading below our estimate of fair value ($27.96)

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


Price To Earnings Ratio

PE vs Industry: OLN is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: OLN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OLN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OLN is good value based on its PB Ratio (1.2x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Olin forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

128.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OLN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: OLN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OLN's is expected to become profitable in the next 3 years.

Revenue vs Market: OLN's revenue (2.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OLN's revenue (2.4% 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 low in 3 years time (10.2%).


Next Steps

Past Performance

How has Olin performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OLN is currently unprofitable.

Growing Profit Margin: OLN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OLN is unprofitable, but has reduced losses over the past 5 years at a rate of 36.3% per year.

Accelerating Growth: Unable to compare OLN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OLN is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-14.6%).


Return on Equity

High ROE: OLN has a negative Return on Equity (-0.47%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Olin's financial position?


Financial Position Analysis

Short Term Liabilities: OLN's short term assets ($1.7B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: OLN's short term assets ($1.7B) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: OLN's debt to equity ratio (138.2%) is considered high.

Reducing Debt: OLN's debt to equity ratio has increased from 66.6% to 138.2% over the past 5 years.


Balance Sheet

Inventory Level: OLN has a high level of physical assets or inventory.

Debt Coverage by Assets: OLN's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OLN has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: OLN has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.48%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: OLN's dividend (4.48%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: OLN's dividend (4.48%) is in the top 25% of dividend payers in the US market (3.69%)


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: OLN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: OLN's dividends in 3 years are forecast to be covered by earnings (60% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

John Fischer (63yo)

3.8yrs

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

Compensation vs Market: John's total compensation ($USD6.34M) is about average for companies of similar size in the US market ($USD4.88M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Fischer
Chairman3.8yrsUS$6.34m0.13% $3.7m
Todd Slater
VP & CFO5.8yrsUS$2.08m0.061% $1.7m
James Varilek
Executive VP & COO0.8yrsUS$2.47m0.025% $698.1k
John McIntosh
Executive Vice President of Synergies & Systems9.3yrsUS$1.97m0.058% $1.6m
Pat Dawson
Executive VP and President of Epoxy & International4.3yrsUS$3.77m0.036% $1.0m
Logan Bonacorsi
Director of Investor Relations0yrsno datano data
Eric Blanchard
VP, General Counsel & Secretary2.9yrsno datano data
Valerie Peters
Vice President of Human Resources1.4yrsno data0.0039% $110.3k
Larry Kromidas
Director of Investor Relations & Assistant Treasurer14.3yrsno datano data
John Sampson
Senior Vice President of Business Operations0yrsno data0.037% $1.0m

4.0yrs

Average Tenure

61.5yo

Average Age

Experienced Management: OLN's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Fischer
Chairman3.8yrsUS$6.34m0.13% $3.7m
John Michael O'Connor
Independent Director14.1yrsUS$259.99k0.013% $376.6k
Randall Larrimore
Independent Director22.1yrsUS$290.74k0.042% $1.2m
C. Bunch
Independent Director14.2yrsUS$267.70k0.011% $297.5k
Vincent Smith
Independent Director11.5yrsUS$259.99k0.024% $666.0k
William Weideman
Lead Director1.8yrsUS$311.03k0.0046% $129.8k
Gray Benoist
Independent Director11yrsUS$260.46k0.021% $586.9k
Earl Shipp
Independent Director2.3yrsUS$256.18k0.0057% $159.3k
Scott Sutton
Independent Director1.4yrsUS$96.63k0.029% $813.2k
Carol Williams
Independent Director4.3yrsUS$263.19k0.0018% $51.0k

7.7yrs

Average Tenure

64yo

Average Age

Experienced Board: OLN's board of directors are considered experienced (7.7 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 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$2.815b
  • Shares outstanding: 157.70m
  • 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 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 and vinylidene chloride, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, chlorinated organics intermediates and solvents, and sodium hypochlorite.The Epoxy segment provides allyl chloride and epichlorohydrin, as well as acetone, bisphenol, cumene, and phenol for use in resins and other plastic materials, water purification, and pesticides, as well as for the manufacturers of polymers; liquid and solid epoxy resins that are used in adhesives, paints and coatings, composites, and flooring; and differentiated epoxy resins for use in electrical laminates, paints and coatings, wind blades, electronics, and construction, as well as offers additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was founded in 1892 and is based in Clayton, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:50
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.