Olin (OLN) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: 3.34%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.45
• Revenue Growth: 1.49%
• EPS Growth: -105.20%
• Country: US
• Employees: 7,676
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.05
• Shares Outstanding: 114,641,530
• 10 Day Avg. Volume: 2,775,673
• 30 Day Avg. Volume: 2,464,404
• PEG Ratio: -0.49
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 12.92
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 9.53
• Enterprise Value/Ebitda: 12.62
• 1Y Price Target: $24.82
• Price Target Upside: 3.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 54 Neutral
• Price Target: $24.50 ▲(2.25% Upside)

Olin's overall stock score reflects significant challenges in financial performance and valuation, with high leverage and declining profitability being major concerns. Technical analysis shows moderate momentum, while the earnings call highlights both operational strengths and challenges. The company's strong cash flow generation provides some stability amidst these issues.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation supports financial stability, allowing for strategic investments, debt reduction, and shareholder returns, enhancing long-term resilience.

Winchester Defense Business Growth

Growth in the Winchester defense business indicates robust demand in military markets, providing a stable revenue stream and reinforcing Olin's market position.

Beyond 250 Cost Savings Initiative

The cost savings initiative aims to improve operational efficiency, reducing costs and enhancing profitability, which is crucial for long-term competitiveness.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting flexibility in downturns and impacting the company's ability to invest in growth opportunities.

Declining Profitability

Declining profitability pressures margins, reducing the ability to reinvest in the business and potentially affecting long-term growth and shareholder value.

Challenges in Commercial Ammunition Business

Challenges in the commercial ammunition segment could lead to reduced revenue and profitability, impacting Olin's overall financial performance and market competitiveness.

Olin Business Overview & Revenue Model

Company Description

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. The Epoxy segment provides epoxy materials and precursors, including aromatics, such as acetone, bisphenol, cumene, and phenol, as well as allyl chloride, epichlorohydrin, and glycerin used for the manufacturers of polymers, resins and other plastic materials, and water purification; liquid and solid epoxy resins that are used in adhesives, marines, protective coatings, composites, and flooring; and converted epoxy resins and additives for use in electrical laminates, paints and coatings, wind blades, electronics, and construction. 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 powder-actuated tools in 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 incorporated in 1892 and is based in Clayton, Missouri.

How the Company Makes Money

Olin generates revenue primarily through the sale of its chemical and ammunition products. The Chemical segment earns money by supplying high-demand chemicals to various industries, capitalizing on the needs for water treatment, industrial manufacturing, and consumer products. Revenue is driven by sales volume and pricing dynamics in the global chemical markets. The Ammunition segment makes money through contracts with government entities, military agencies, and commercial sales to consumers and law enforcement. Key partnerships with government and military contracts significantly contribute to stable revenue streams. Additionally, Olin benefits from economies of scale in production, which helps to optimize costs and enhance profitability.

Olin Financial Statement Overview

Summary

Olin's financial performance is mixed. The income statement shows challenges with profitability and revenue growth, while the balance sheet reflects high leverage, posing risks. However, cash flow remains strong, with robust operating cash flow relative to net income. Addressing revenue decline and leverage is crucial for financial health improvement.

Income Statement

Olin shows a mixed performance in the income statement. The TTM Gross Profit Margin is healthy at 33.13%, indicating efficient cost management relative to revenue. However, the Net Profit Margin for the TTM is low at 0.94%, reflecting challenges in converting revenue into profit. Revenue has declined over the years, with a significant drop of 30.16% from 2022 to 2023, highlighting a concerning trend in revenue growth. The EBIT and EBITDA margins are moderate at 3.88% and 10.06% respectively, suggesting some operational efficiency but also room for improvement.

Balance Sheet

The balance sheet reveals a relatively high Debt-to-Equity ratio of 1.60, which could imply higher financial risk due to significant leverage. The Return on Equity for the TTM is notably low at 3.01%, indicating a modest return on shareholders' investments. The equity ratio stands at 26.62%, suggesting a moderate level of financial stability. While there are strengths, such as a stable asset base, the high leverage remains a key concern.

Cash Flow

Olin's cash flow statement reflects a solid cash generation capability. The Operating Cash Flow to Net Income ratio is robust at 6.88 for the TTM, indicating strong cash flow relative to net income. However, the Free Cash Flow has decreased, with a decline of 37.77% from the previous year. The Free Cash Flow to Net Income ratio stands at 3.12, showing that the company is generating sufficient cash flow, albeit with some reductions over time. Overall, cash flow stability is a positive aspect of Olin's financials.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.66B	6.54B	6.83B	9.38B	8.91B	5.76B
Gross Profit	566.40M	737.50M	1.16B	2.18B	2.29B	383.40M
EBITDA	427.90M	873.90M	1.30B	2.44B	2.32B	-142.50M
Net Income	-14.30M	108.60M	460.20M	1.33B	1.30B	-969.90M
Balance Sheet
Total Assets	7.67B	7.58B	7.71B	8.04B	8.52B	8.27B
Cash, Cash Equivalents and Short-Term Investments	223.80M	175.60M	170.30M	194.00M	180.50M	189.70M
Total Debt	3.22B	3.15B	3.02B	2.94B	3.16B	4.23B
Total Liabilities	5.68B	5.52B	5.44B	5.50B	5.87B	6.82B
Stockholders Equity	1.96B	2.02B	2.23B	2.54B	2.65B	1.45B
Cash Flow
Free Cash Flow	271.20M	308.10M	738.30M	1.69B	1.54B	119.50M
Operating Cash Flow	457.90M	503.20M	974.30M	1.92B	1.74B	418.40M
Investing Cash Flow	-285.60M	-283.70M	-340.80M	-259.70M	-197.40M	-835.70M
Financing Cash Flow	-130.30M	-212.60M	-656.90M	-1.65B	-1.55B	371.00M

Olin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLN, the sentiment is Positive. The current price of 23.96 is below the 20-day moving average (MA) of 24.51, above the 50-day MA of 22.15, and below the 200-day MA of 24.18, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 19.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OLN.

Olin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVNT	70 Neutral	$3.01B	25.42	5.01%	3.29%	3.28%	1.69%
PRM	63 Neutral	$3.15B	50.56	-0.51%	―	56.87%	―
KWR	62 Neutral	$2.32B	-295.72	-0.53%	1.46%	-3.09%	-106.46%
OLN	54 Neutral	$2.75B	41.89	-0.69%	3.34%	1.49%	-105.20%
WLK	52 Neutral	$9.96B	-146.56	-0.64%	2.71%	-3.00%	-124.79%
CC	51 Neutral	$2.34B	-5.60	-177.22%	4.31%	2.48%	-459.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Olin Corporate Events

Olin Corporation Updates Bylaws with New Amendments

On August 13, 2025, Olin Corporation’s Board of Directors approved amendments to the company’s Bylaws, which include revised procedural and disclosure requirements for shareholder nominations and business proposals, and mandate that director candidates be available for Board interviews. Additionally, on August 12, 2025, the Board declared a quarterly dividend of $0.20 per share, payable on September 12, 2025, marking the company’s 395th consecutive quarterly dividend.