Olin Corp. (OLN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PPG Industries, Inc.

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RPM International, Inc.

Montauk Renewables, Inc.

CSW Industrials, Inc.

The Sherwin-Williams Co.

H.B. Fuller Co.

Axalta Coating Systems Ltd.

Olin Corp.

Chase Corp.

Why is Olin Corp. ?

High Management Efficiency with a high ROCE of 17.75%

Healthy long term growth as Operating profit has grown by an annual rate 65.99%

The company has declared Negative results for the last 10 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 457.9 MM
PRE-TAX PROFIT(Q) At USD 7.9 MM has Fallen at -69.79%
ROCE(HY) Lowest at -0.69%

With ROCE of 6.58%, it has a expensive valuation with a 1.06 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -41.48%, its profits have fallen by -81.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -41.48% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Olin Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Olin Corp.

9.32%

-0.95

58.46%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.32%

EBIT Growth (5y)

48.03%

EBIT to Interest (avg)

5.43

Debt to EBITDA (avg)

2.48

Net Debt to Equity (avg)

1.46

Sales to Capital Employed (avg)

1.34

Tax Ratio

30.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

17.75%

ROE (avg)

26.75%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

1581

Industry P/E

Price to Book Value

1.79

EV to EBIT

53.05

EV to EBITDA

9.47

EV to Capital Employed

1.32

EV to Sales

0.89

PEG Ratio

Dividend Yield

2.80%

ROCE (Latest)

2.49%

ROE (Latest)

0.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 7.4 times

-23What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -103.9 MM has Fallen at -1,057.66%

ROCE(HY)

Lowest at -6.8%

DEBT-EQUITY RATIO (HY)

Highest at 179.82 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 46.62% (YoY

NET SALES(Q)

Lowest at USD 1,583 MM

OPERATING PROFIT(Q)

Lowest at USD 57.2 MM

NET PROFIT(Q)

Lowest at USD -68.6 MM

Here's what is working for Olin Corp.

Inventory Turnover Ratio

Highest at 7.4 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Olin Corp.

Pre-Tax Profit

At USD -103.9 MM has Fallen at -1,057.66%

over average net sales of the previous four periods of USD -8.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -68.6 MM has Fallen at -10,317.02%

over average net sales of the previous four periods of USD 0.67 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 179.82 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at USD 1,583 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 57.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Net Profit

Lowest at USD -68.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 46.62% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales