Olin Corporation [NYSE: OLN] shares went lower by -4.10% from its previous closing of $16.58, now trading at the price of $15.90, also adding -0.68 points. Is OLN stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.11 million contracts. Compared to the average trading volume of OLN shares, the company saw a far better performance. Moreover, the stock has a 158.95M float and a -16.68% run over in the last seven days. OLN share price has been hovering between $26.26 and $14.55 lately, and is definitely worthy of attention.
Olin Corporation [NYSE:OLN]: Analyst Rating and Earnings
Its stock price has been found in the range of 14.55 to 26.26. This is compared to its latest closing price of $16.58.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on 05/05/2020.
Fundamental Analysis of Olin Corporation [OLN]
Now let’s turn to look at profitability: with a current Operating Margin for Olin Corporation [OLN] sitting at +4.16 and its Gross Margin at +10.98, this company’s Net Margin is now 4.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.17, and its Return on Invested Capital has reached 9.40%. Its Return on Equity is -0.43, and its Return on Assets is -0.12. These metrics suggest that this Olin Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Olin Corporation [OLN] has generated a Total Debt to Total Equity ratio of 154.02. Similarly, its Total Debt to Total Capital is 60.63, while its Total Debt to Total Assets stands at 40.53. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 1.05, and its Long-Term Debt to Total Capital is 150.66.
What about valuation? This company’s Enterprise Value to EBITDA is 7.17 and its Total Debt to EBITDA Value is 3.92. The Enterprise Value to Sales for this firm is now 1.07, and its Total Debt to Enterprise Value stands at 0.59. Olin Corporation [OLN] has a Price to Book Ratio of 1.13, a Price to Cash Flow Ratio of 4.66.
Similarly, this company’s Receivables Turnover is 7.85 and its Total Asset Turnover is 0.67. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.94 and its Current Ratio is 1.58. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Olin Corporation [OLN] has 161.90M shares outstanding, amounting to a total market cap of $2.68B. Its stock price has been found in the range of 14.55 to 26.26. At its current price, it has moved down by -39.45% from its 52-week high, and it has moved up 9.28% from its 52-week low.
This stock’s Beta value is currently 1.71, which indicates that it is 7.37% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 40.69. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Olin Corporation [OLN] a Reliable Buy?
Shares of Olin Corporation [OLN], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.