One-glance verdict
Undervalued
$74.53 our estimate vs market $15.65
Wall Street consensus: $19.81 (-73.4% lower than our fair-value estimate)
79% below our estimate, below the bear case
Fundamentals snapshot
Olin Corporation
OLN · NYQ · Basic Materials · Chemicals
Current price
$15.65
52-week range
$14.64 - $30.46
Market cap
$1.78B
Balance sheet
Distressed
0.21x Concerning
Net debt $3.23B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 5.1% with 40-year payout history.
- Risk Operating margin compressed from 19.2% to 4.0% over 3 years.
- Risk Return on equity was -10.6% last year — the company lost money on shareholders' equity.
What this company does
Olin Corporation
Olin Corporation makes chemicals used in many everyday items like plastics and cleaning supplies, and also sells ammunition through its Winchester brand. Their main income comes from selling these chemicals, which is important because it shows how well they are doing at producing and selling the things people need. This business model means their success is tied to how much demand there is for their chemical products and ammunition.
How the company got here
Olin began its journey way back in 1892, starting as a small company making blasting powder for coal mines and quarries. Over many years, it grew by expanding into new areas and buying other companies, including the famous gun and ammo maker, Winchester, in 1931. A key turning point was its 1954 merger with Mathieson Chemical, which greatly expanded its chemical business. More recently, in 2015, Olin made a huge move by acquiring the chlorine and vinyls businesses from The Dow Chemical Company, which made it a global leader in those specific chemical markets.
What it actually does
Think of Olin as two different kinds of businesses combined into one company. A large part of the company makes basic chemicals that are essential ingredients for thousands of other products you see every day, like plastics, soaps, detergents, and even the clean water from your tap. The other, more famous part of the company is Winchester, which makes ammunition for hunting, sport shooting, and for law enforcement and the military. So, while you won't buy most of Olin's products directly, they are the building blocks for many common goods, or they are the bullets used at a shooting range or by hunters.
Chlor Alkali Products and Vinyls
This is Olin's largest business, making up more than half of its sales. It produces fundamental chemicals like chlorine, caustic soda, and vinyls by using electricity to split salt. These are not products you'd buy at a store; instead, they are sold to other industrial companies who use them to make things like PVC pipes, paper, water treatment chemicals, soaps, and detergents. Essentially, this division provides the raw materials that are the starting point for many other manufacturing processes.
Epoxy
This segment, which accounts for about a fifth of the company's business, makes epoxy resins and related materials. Epoxies are powerful adhesives and coatings known for their toughness and resistance, used to make things stronger and last longer. Customers buy these products to create super-strong glues, protective coatings for floors and pipelines, and lightweight parts for wind turbine blades, cars, and electronics. This division helps make everyday products more durable and efficient.
Winchester
This is the most well-known part of Olin, representing about a quarter of its business. The Winchester brand manufactures and sells small-caliber ammunition (bullets and shells) for a variety of customers. People who hunt or enjoy sport shooting buy Winchester ammo from retailers and gun clubs. Additionally, this segment is a major supplier of ammunition to law enforcement agencies and the U.S. military.
What management is betting on now
Olin's leadership is currently focused on getting more value out of what it already produces, rather than just selling more volume at any price. They are concentrating on operational efficiency (running their plants smoothly and cost-effectively) and disciplined capital allocation (being very careful and strategic about how they spend money on new projects or equipment). A key part of their strategy is to use their leadership position in basic chemicals to form partnerships that create more valuable products. This means they are betting that by being a reliable, efficient producer of essential chemicals and ammunition, they can generate more consistent cash and returns for their investors over the long term.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$146.60M
FY2024 Q4
$90.70M
FY2025 Q1
$-147.40M
FY2025 Q2
$181.30M
FY2025 Q3
$-44.40M
FY2025 Q4
$156.30M
FY2026 Q1
$-92.30M
FY2026 Q2
$-21.10M
Revenue
$1.74B
Net income
$-13.30M
Diluted EPS
-0.12
Operating cash flow
$7.90M
Free cash flow
$-21.10M
Fetching…
Sources
Revenue
$1.58B
Net income
$-83.00M
Diluted EPS
-0.73
Operating cash flow
$-48.60M
Free cash flow
$-92.30M
Fetching…
Sources
Revenue
$1.67B
Net income
$-143.20M
Diluted EPS
-1.25
Operating cash flow
$321.20M
Free cash flow
$156.30M
Fetching…
Sources
Revenue
$1.71B
Net income
$43.70M
Diluted EPS
0.37
Operating cash flow
$26.70M
Free cash flow
$-44.40M
Fetching…
Sources
Revenue
$1.76B
Net income
$-2.80M
Diluted EPS
-0.01
Operating cash flow
$212.30M
Free cash flow
$181.30M
Fetching…
Sources
Revenue
$1.64B
Net income
$1.20M
Diluted EPS
0.01
Operating cash flow
$-86.00M
Free cash flow
$-147.40M
Fetching…
Sources
Revenue
$1.67B
Net income
$10.10M
Diluted EPS
0.10
Operating cash flow
$141.70M
Free cash flow
$90.70M
Fetching…
Sources
Revenue
$1.59B
Net income
$-25.20M
Diluted EPS
-0.21
Operating cash flow
$189.90M
Free cash flow
$146.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $74.53 vs current price $15.65
Wall Street consensus is the average analyst price target: $19.81 (-73.4% lower than our fair-value estimate).
Our most-likely fair value is $74.53 a share — about 376.2% above today's price of $15.65, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $3.2B. Interest coverage 0.2x.
Net debt
$3.23B
Interest coverage
0.21x
Olin Corporation's profit covers its interest bill about 0.2 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
OLN
BASELINE
Olin Corporation
Total debt $3.41B Interest coverage 0.21x This is the baseline the peer rows are being compared against.
Total debt $19.44B Interest coverage 0.18x -11% vs OLN Has roughly the same debt cushion as OLN.
Total debt $14.33B Interest coverage 1.71x +730% vs OLN Carries about 8.3x more debt cushion than OLN.
Total debt $5.88B Interest coverage -1.23x -100% vs OLN This peer has almost no interest-payment cushion compared with OLN.
Total debt $2.50B Interest coverage -0.27x -100% vs OLN This peer has almost no interest-payment cushion compared with OLN.
Total debt $12.40B Interest coverage 1.09x +430% vs OLN Carries about 5.3x more debt cushion than OLN.
What you should know
The case for and against OLN
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 5.1% with 40-year payout history.
Risks
-
Operating margin compressed from 19.2% to 4.0% over 3 years.
-
Return on equity was -10.6% last year — the company lost money on shareholders' equity.
-
Net debt grew 8.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
28.48x
P/B
1.04x
P/S
0.27x
EV/EBITDA
7.98x
PEG ratio
7.05x
Profitability
How much profit each dollar creates
Gross margin
6.9%
Operating margin
4.0%
Net margin
-2.9%
ROE
-10.6%
ROA
1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.99x
Current ratio
1.42x
Quick ratio
0.79x
Total debt
$3.41B
Total cash
$177.40M
Growth
How the business has been compounding
Revenue TTM
$6.70B
Revenue 5Y CAGR
-6.6%
EPS TTM
-1.73
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$307.20M
Free CF TTM
$247.90M
FCF margin
3.7%
Dividend
Shareholder payout
Yield
5.1%
Payout ratio
173.9%
Last ex-div date
2026-08-27