Olin Corporation’s Stock Performance Despite Difficult Year

Trending News ☀️

Olin Corporation is an American manufacturer of chemicals, metals, and ammunition. Olin Corporation’s stock performance has been relatively strong compared to other stocks during a difficult year for the stock market. However, Olin’s business is clearly deteriorating, and management will be put to the test to see if they can sustain the same amount of free cash flow as they committed to during a recession. With the business entering a significant downturn, there are better stocks to own than Olin.

Market Price

On Friday, OLIN CORPORATION ($NYSE:OLN) stock opened at $48.8 and closed at $46.8, down by 2.5% from last closing price of 48.0. The company has been in the news recently for its strong performance despite the challenges posed by the pandemic. OLIN CORPORATION has been able to maintain its production levels and even increase its output in some cases. This has allowed the company to continue to generate revenues and profits. The company’s stock price is likely to continue to be volatile in the near term, as the pandemic continues to present challenges.

However, the company’s long-term prospects remain positive, and OLIN CORPORATION is well-positioned to continue to generate strong returns for shareholders.

VI Analysis

VI Star Chart shows that OLIN CORPORATION is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. OLIN CORPORATION’s fundamentals reflect its long term potential. The company is strong in dividend, growth, and medium in asset, profitability. OLIN CORPORATION has a high health score of 7/10 considering its cashflows and debt, is capable to pay off debt and fund future operations. Such company may be interesting to growth investors who are looking for companies that have the potential to generate high returns.

However, due to its lower profitability, OLIN CORPORATION may be considered less stable than other companies.

VI 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 major manufacturer of ammunition, chlorine, and epoxy. The company’s stock performance has been strong despite a difficult year. The company has been the subject of positive media exposure, and its products are in high demand. However, the company faces significant challenges, including increased competition, a potential slowdown in the global economy, and geopolitical risk.