NYSE:OC, an undervalued stock with good fundamentals.

Last update: Nov 15, 2023

Discover OWENS CORNING (NYSE:OC)—an undervalued stock our stock screener has picked out. NYSE:OC demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Unpacking NYSE:OC's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:OC scores a 8 out of 10:

With a Price/Earnings ratio of 9.57, the valuation of OC can be described as very reasonable.
Based on the Price/Earnings ratio, OC is valued cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.68, OC is valued rather cheaply.
The Price/Forward Earnings ratio is 9.09, which indicates a very decent valuation of OC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 93.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.34, OC is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaper than 95.45% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OC indicates a somewhat cheap valuation: OC is cheaper than 65.91% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OC has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Insights: NYSE:OC

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:OC scores a 7 out of 10:

With a decent Return On Assets value of 10.74%, OC is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Return On Equity of OC (23.29%) is better than 70.45% of its industry peers.
The Return On Invested Capital of OC (13.22%) is better than 65.91% of its industry peers.
The 3 year average ROIC (12.19%) for OC is below the current ROIC(13.22%), indicating increased profibility in the last year.
OC has a Profit Margin of 12.31%. This is in the better half of the industry: OC outperforms 79.55% of its industry peers.
In the last couple of years the Profit Margin of OC has grown nicely.
Looking at the Operating Margin, with a value of 16.58%, OC is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
OC's Operating Margin has improved in the last couple of years.
OC's Gross Margin has improved in the last couple of years.

Understanding NYSE:OC's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:OC scores a 6 out of 10:

OC has an Altman-Z score of 3.34. This indicates that OC is financially healthy and has little risk of bankruptcy at the moment.
OC has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as OC would need 2.57 years to pay back of all of its debts.
OC's Debt to FCF ratio of 2.57 is fine compared to the rest of the industry. OC outperforms 61.36% of its industry peers.
OC has a Current Ratio of 2.16. This indicates that OC is financially healthy and has no problem in meeting its short term obligations.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:OC, the assigned 5 reflects its growth potential:

OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
The Earnings Per Share has been growing by 23.62% on average over the past years. This is a very strong growth
OC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.86% yearly.

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Check the latest full fundamental report of OC for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.