Olin Return On Equity vs. EBITDA

OLN Stock  USD 43.59  0.72  1.68%   
Considering Olin's profitability and operating efficiency indicators, Olin's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Olin's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.20614585
Current Value
0.22
Quarterly Volatility
0.28398345
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 26th of November 2024, Price To Sales Ratio is likely to grow to 1.04. Also, Days Sales Outstanding is likely to grow to 57.71. At this time, Olin's Net Income Per Share is very stable compared to the past year. As of the 26th of November 2024, Income Quality is likely to grow to 2.22, while Accumulated Other Comprehensive Income is likely to drop (521.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.1696
Significantly Up
Pretty Stable
For Olin profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Olin to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Olin Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Olin's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Olin Corporation over time as well as its relative position and ranking within its peers.
  

Olin's Revenue Breakdown by Earning Segment

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Is Commodity Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Olin. If investors know Olin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Olin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.45)
Dividend Share
0.8
Earnings Share
1.26
Revenue Per Share
54.448
Quarterly Revenue Growth
(0.05)
The market value of Olin is measured differently than its book value, which is the value of Olin that is recorded on the company's balance sheet. Investors also form their own opinion of Olin's value that differs from its market value or its book value, called intrinsic value, which is Olin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Olin's market value can be influenced by many factors that don't directly affect Olin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Olin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Olin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Olin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Olin EBITDA vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Olin's current stock value. Our valuation model uses many indicators to compare Olin value to that of its competitors to determine the firm's financial worth.
Olin Corporation is regarded second in return on equity category among its peers. It is rated below average in ebitda category among its peers totaling about  665,116,279  of EBITDA per Return On Equity. At this time, Olin's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Olin's earnings, one of the primary drivers of an investment's value.

Olin's Earnings Breakdown by Geography

Olin EBITDA vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Olin

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0645
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Olin

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
42.9 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Olin EBITDA Comparison

Olin is currently under evaluation in ebitda category among its peers.

Olin Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Olin, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Olin will eventually generate negative long term returns. The profitability progress is the general direction of Olin's change in net profit over the period of time. It can combine multiple indicators of Olin, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-496.3 M-521.1 M
Operating Income42.9 M40.8 M
Income Before Tax559.3 M587.3 M
Total Other Income Expense Net516.4 M542.2 M
Net Income460.2 M483.2 M
Income Tax Expense107.3 M112.7 M
Net Income Applicable To Common Shares1.5 B1.6 B
Net Income From Continuing Ops599.8 M305.7 M
Non Operating Income Net OtherM2.6 M
Interest Income4.2 MM
Net Interest Income-170.2 M-178.7 M
Change To Netincome-37.5 M-35.6 M
Net Income Per Share 3.66  3.84 
Income Quality 2.12  2.22 
Net Income Per E B T 0.82  0.47 

Olin Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Olin. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Olin position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Olin's important profitability drivers and their relationship over time.

Use Olin in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Olin position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Olin will appreciate offsetting losses from the drop in the long position's value.

Olin Pair Trading

Olin Corporation Pair Trading Analysis

The ability to find closely correlated positions to Olin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Olin when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Olin - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Olin Corporation to buy it.
The correlation of Olin is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Olin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Olin moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Olin can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Olin position

In addition to having Olin in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Wireless Thematic Idea Now

Wireless
Wireless Theme
Companies providing wireless technology and communication services. The Wireless theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Wireless Theme or any other thematic opportunities.
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When determining whether Olin offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Olin's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Olin Corporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Olin Corporation Stock:
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You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project Olin's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Olin at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Olin's income statement, its balance sheet, and the statement of cash flows.
Potential Olin investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Olin investors may work on each financial statement separately, they are all related. The changes in Olin's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Olin's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.