Olin Corporation (OLN): Price and Financial Metrics

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OLN Price/Volume Stats

Olin Corporation (OLN) Company Bio

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

Below please find a table outlining a discounted cash flow forecast for OLN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that OLIN Corp ranked in the 51th 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:

• The stock's equity weight, or the proportion of capital from equity relative to debt, is 64. Notably, its equity weight is greater than just 18.66% of US equities in the Basic Materials sector yielding a positive free cash flow.
• OLIN Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
• OLIN Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.94. This coverage rate is greater than that of only 21.13% of stocks we're observing for the purpose of forecasting via discounted cash flows.

For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OLN, try CSL, ARLP, ODC, MLM, and RGLD.