Olin Corporation Stock Intrinsic Value – Deutsche Bank Rates Olin Corporation ‘Hold’
December 9, 2023
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Olin Corporation ($NYSE:OLN) is a leading global manufacturer and distributor of chemical products, currently traded on the New York Stock Exchange under the ticker symbol OLN. The company operates in four segments: Chlor Alkali Products & Vinyls, Epoxy, Winchester, and Corporate and Other. Recently, Deutsche Bank, a leading global investment bank, has released its latest research on Olin Corporation and given it a ‘Hold’ rating. The report also notes that Olin continues to benefit from cost savings initiatives and has been successful in reducing its long-term debt. Going forward, Deutsche Bank believes that Olin’s growth prospects are challenged due to the uncertain macroeconomic conditions. Despite the ‘Hold’ rating, Deutsche Bank is still optimistic about Olin’s long-term prospects as the company is actively investing in initiatives that can help it expand its operations.
Additionally, Deutsche Bank expects the company to benefit from strong pricing in the Chlor Alkali Products & Vinyls segment and continue to reduce its long-term debt. Overall, Deutsche Bank believes that Olin’s fundamentals are sound and investors should hold their positions to benefit from the long-term growth potential of the company.
Stock Price
On Thursday, Deutsche Bank issued a “Hold” rating for OLIN CORPORATION stock. The stock opened at 49.3 and closed at 49.7, an increase of 0.5% from its previous close of 49.4. Despite this small increase, Deutsche Bank decided to maintain their “Hold” rating for the stock.
This rating implies that investors should neither buy nor sell the stock in the foreseeable future. With this rating, Deutsche Bank is indicating that OLIN CORPORATION is unlikely to significantly outperform the broader markets and other stocks in its sector. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Olin Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 7.2k | 603.9 | 9.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Olin Corporation. More…
| Operations | Investing | Financing |
| 969.9 | -300.2 | -675.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Olin Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.82k | 5.45k | 18.99 |
Key Ratios Snapshot
Some of the financial key ratios for Olin Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.4% | 92.2% | 12.8% |
| FCF Margin | ROE | ROA |
| 10.1% | 24.1% | 7.3% |
Analysis – Olin Corporation Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of OLIN CORPORATION‘s wellbeing. After examining the stock’s financials and other relevant factors, we have calculated the fair value of OLIN CORPORATION’s share to be around $50.1. This figure was derived using our proprietary Valuation Line. Currently, OLIN CORPORATION stock is trading at $49.7 – a fair price that is close to our estimated fair value. This indicates that the stock is neither undervalued nor overvalued by the market, and may be a good investment opportunity for investors looking to add it to their portfolio. More…
Peers
Olin Corp is a leading manufacturer of chlor alkali products, vinyls, and epoxy, with a significant presence in the global market. The company has a long history of competition with other manufacturers, including Aarti Industries Ltd, Stepan Co, and Kaneka Corp.
– Aarti Industries Ltd ($BSE:524208)
Aarti Industries Ltd is an Indian company that manufactures and sells chemicals. It has a market cap of 285.93B as of 2022 and a ROE of 17.74%. The company was founded in 1972 and is based in Mumbai, India.
– Stepan Co ($NYSE:SCL)
Stepan Co. has a market capitalization of $2.11 billion as of March 2022 and a return on equity of 11.75%. The company produces and sells specialty and intermediate chemicals used in a variety of applications, including surfactants, polymers, and other performance chemicals. Stepan’s products are sold to customers in more than 90 countries around the world.
– Kaneka Corp ($TSE:4118)
Kaneka Corporation is a Japanese chemical company with a market capitalization of 245.56 billion as of 2022. The company has a return on equity of 6.58%. Kaneka Corporation is involved in the manufacture of chemicals, plastics, and pharmaceuticals. The company was founded in 1934 and is headquartered in Osaka, Japan.
Summary
Olin Corporation is a chemical manufacturing company with operations in multiple countries. Analysts at Deutsche Bank recently rated Olin as a “Hold.” This rating is based on a careful analysis of the company’s financials, strategic positioning, and potential risks. Olin’s revenues have increased steadily over recent years, with higher sales due to an increased demand for its products. Gross margins have also improved, showing a strong pricing power.
Additionally, Olin has a strong foothold in its core markets with experienced management and operations teams as well as long-term customer relationships. On the other hand, the company faces potential risks such as product liability lawsuits, unfavorable changes in government regulations, and the impact of foreign exchange fluctuations. Overall, Deutsche Bank’s Hold rating on Olin Corporation reflects a balanced view of the company’s prospects and risks.
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