Olin Corporation produces chlorine and caustic soda, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. Chemical Distribution manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid. The company was founded in 1892 and is based in Clayton, Missouri.
OLN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for OLIN Corp. To summarize, we found that OLIN Corp ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for OLIN Corp ended up being:
46% of the company's capital comes from equity, which is greater than only 19.84% of stocks in our cash flow based forecasting set.
OLIN Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.16. This coverage rate is greater than that of only 15.46% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 14. This value is greater than 94.92% stocks in the Basic Materials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OLN, try WPM, SCHN, UFS, AEHL, and AVNT.
CLAYTON, Mo., Sept. 15, 2020 /PRNewswire/ -- Olin Corporation (NYSE: OLN) announced today that it has notified bondholders that it intends to redeem $600 million of outstanding 9.75% senior notes due October 15, 2023 (the "Notes"). The Notes are expected to be redeemed on October 15, 2020…
MIDLAND, Mich.--(BUSINESS WIRE)--Dow (NYSE: DOW) announced today that John Sampson, executive vice president, Business Operations for Olin Corporation, has been named senior vice president, Operations, Manufacturing & Engineering for Dow. Sampson succeeds Peter Holicki, who will retire in 2021 after more than 34 years of service with Dow. Sampson has most recently served as a corporate officer at Olin Corporation, with executive oversight for managing the M&E, Manufacturing Services, Sa
Since my previous coverage in June, Olin Corporation’s (OLN) share price has been struggling despite the generally bullish sentiment of the stock market, which has been rushing to an all-time high. Among the headwinds that hindered the price from recovering was unexpectedly weak Q2 profit and revenue, which were below...
Vasily Zyryanov on Seeking Alpha | August 20, 2020
Olin ([[OLN]] +2.2%) rebounds from recent losses despite receiving a downgrade to Neutral from Buy with a $12 price target, cut from $16, at Bank of America, which points to the company's sharp Q2 loss due to "weakness in the chlorine chain, lower volumes and plant outages."Q2 marks Olin's third...
Today, Olin Corporation's (NYSE: OLN) Board of Directors declared a quarterly dividend of $0.20 on each share of Olin common stock. The dividend is payable on September 10, 2020 to shareholders of record at the close of business on August 10, 2020. This marks the company's 375th consecutive quarterly dividend.