NYSE:OLN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

OLN

2.1%

US Chemicals

2.5%

US Market


1 Year Return

-37.7%

OLN

4.3%

US Chemicals

16.3%

US Market

Return vs Industry: OLN underperformed the US Chemicals industry which returned 4.3% over the past year.

Return vs Market: OLN underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

OLNIndustryMarket
7 Day-2.1%2.1%2.5%
30 Day-1.2%7.8%5.3%
90 Day-13.2%19.0%16.3%
1 Year-34.0%-37.7%6.7%4.3%18.8%16.3%
3 Year-57.5%-62.3%26.6%2.9%45.0%35.7%
5 Year-36.3%-47.5%53.1%19.9%75.8%56.8%

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?

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OLN ($11) is trading below our estimate of fair value ($17.37)

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 US 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 (0.8x) 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 10 analysts?

109.5%

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 (2.2%).

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 (6.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: OLN's revenue (6.2% 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 (0.8%).


Next Steps

Past Performance

How has Olin performed over the past 5 years?

13.2%

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 13.2% 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 (-21.2%).


Return on Equity

High ROE: OLN has a negative Return on Equity (-10.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Olin's financial position?


Financial Position Analysis

Short Term Liabilities: OLN's short term assets ($1.6B) exceed its short term liabilities ($926.3M).

Long Term Liabilities: OLN's short term assets ($1.6B) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: OLN's debt to equity ratio (186.1%) is considered high.

Reducing Debt: OLN's debt to equity ratio has increased from 63.5% to 186.1% over the past 5 years.

Debt Coverage: OLN's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: Insufficient data to determine if OLN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

7.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OLN's dividend (7.27%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: OLN's dividend (7.27%) is in the top 25% of dividend payers in the US market (4.36%)


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 not forecast to be well covered by earnings (1402.9% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

John Fischer (64 yo)

4.25yrs

Tenure

US$7,154,041

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 ($USD7.15M) is above average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Fischer
Chairman4.25yrsUS$7.15m0.14%
$ 2.4m
Todd Slater
VP & CFO6.25yrsUS$2.03m0.061%
$ 1.1m
James Varilek
Executive VP & COO1.33yrsUS$2.51m0.025%
$ 430.3k
John McIntosh
Executive Vice President of Synergies & Systems9.83yrsUS$1.90m0.058%
$ 1.0m
Pat Dawson
Executive VP and President of Epoxy & International4.83yrsUS$2.95m0.036%
$ 621.5k
Steve Keenan
Director of Investor Relationsno datano datano data
Eric Blanchard
VP, General Counsel & Secretary3.42yrsno data0.0015%
$ 26.6k
Valerie Peters
Vice President of Human Resources1.92yrsno data0.0039%
$ 67.9k
Larry Kromidas
Director of Investor Relations & Assistant Treasurer14.83yrsno datano data
John Sampson
Executive Vice President of Business Operationsno datano data0.038%
$ 660.0k
Brett Flaugher
VP & President of Winchester2.58yrsno data0.027%
$ 468.9k
Randee Sumner
VP & Controller6.25yrsno data0.0076%
$ 132.1k

4.5yrs

Average Tenure

60.5yo

Average Age

Experienced Management: OLN's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Fischer
Chairman4.25yrsUS$7.15m0.14%
$ 2.4m
John Michael O'Connor
Independent Director14.58yrsUS$256.77k0.015%
$ 259.3k
C. Bunch
Independent Director14.67yrsUS$272.81k0.012%
$ 210.5k
Vincent Smith
Independent Director12yrsUS$259.27k0.025%
$ 437.4k
William Weideman
Independent Lead Director2.33yrsUS$322.81k0.0062%
$ 107.0k
Gray Benoist
Independent Director11.5yrsUS$260.17k0.022%
$ 388.8k
Earl Shipp
Independent Director2.83yrsUS$244.56k0.0056%
$ 98.1k
Heidi Alderman
Independent Director1yrUS$117.93k0.0013%
$ 22.1k
Scott Sutton
Independent Director1.92yrsUS$245.71k0.029%
$ 501.1k
Beverley Babcock
Independent Director1.17yrsUS$154.42kno data
Carol Williams
Independent Director4.83yrsUS$256.81k0.0023%
$ 39.9k
Scott Ferguson
Independent Director0.42yrno data0.0016%
$ 27.1k

3.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: OLN's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$1.736b
  • Shares outstanding: 157.86m
  • 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 Analysis2020/08/09 00:28
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.