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:
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 9th 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. As for the metrics that stood out in our discounted cash flow analysis of OLIN Corp, consider:
The company's balance sheet shows it gets 35% of its capital from equity, and 65% of its capital from debt. Its equity weight surpasses that of just 13.16% of free cash flow generating stocks in the Basic Materials sector.
The company's compound free cash flow growth rate over the past 5.77 years comes in at -0.16%; that's greater than only 12.53% of US stocks we're applying DCF forecasting to.
OLIN Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.21. This coverage rate is greater than that of merely 22.69% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 CMCL, HNRG, BTU, BXC, and GCP.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
CLAYTON, Mo., May 14, 2020 /PRNewswire/ -- Olin Corporation (NYSE: OLN) announced today that it intends to offer (the "Offering") $500 million aggregate principal amount of senior notes due 2025 (the "Senior Notes"), subject to market and other conditions. Olin expects to use the net…