Olin Corp (OLN) Stock Analysis
Verdict: AVOID
Operational losses and 6.6x leverage overshadow $400M Huntsman merger synergies — execution risk and chemical trough demand dominate.
Investment score: 32/100
Analysis as of
Is Olin Corp stock worth reviewing? AI model thesis
Olin Corp is struggling with cyclical trough demand in Chlor Alkali, elevated leverage (6.62x Net Debt/EBITDA), and operating loss metrics (-$1.74 TTM EPS). The model views the proposed Huntsman merger as a long-term catalyst, but near-term balance sheet risk makes the stock unappealing.
7-factor investment score
- Valuation: 42/100 (weight 20%)
- Financial Health: 20/100 (weight 15%)
- Technical Momentum: 22/100 (weight 15%)
- Earnings Quality: 35/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 45/100 (weight 10%)
- Risk-Adjusted Return: 32/100 (weight 15%)
Olin Corp opportunities and risks
What speaks for OLN
- Targeted $400M+ in annual cost synergies from Huntsman merger of equals
What speaks against OLN
- Excessive leverage burden limits financial flexibility during trough cycle
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| OLN | n/a | 0.3x | 10.1x | 6.9% | -2.1% | 5.9% |
| DOW | n/a | 0.5x | 13.1x | 9.8% | -2.9% | 2.0% |
| WLK | n/a | 0.7x | n/a | 4.7% | -10.9% | -3.4% |
| CBT | 20.4x | 1.0x | 7.0x | 22.9% | 5.2% | 7.4% |
| HWKN | 33.5x | 2.5x | 17.0x | 22.3% | 7.3% | 3.4% |
| KRO | n/a | 0.4x | 51.0x | 11.8% | -5.6% | 7.9% |
| Peer median | n/a | 0.7x | 13.1x | 11.8% | -2.9% | 3.4% |
Frequently asked questions about Olin Corp (OLN)
Is OLN stock a good investment?
The cached TradeMates AI model rates Olin Corp as AVOID with an investment score of 32/100. Olin Corp is struggling with cyclical trough demand in Chlor Alkali, elevated leverage (6.62x Net Debt/EBITDA), and operating loss metrics (-$1.74 TTM EPS). The model views the proposed Huntsman merger as a long-term catalyst, but near-term balance sheet risk makes the stock unappealing. This is algorithmic model output, not personal investment advice.
Is OLN stock a buy?
The TradeMates model verdict for OLN is AVOID with an investment score of 32/100. Treat this as a model signal to review, not a personal buy recommendation.