OWENS CORNING (NYSE:OC) has caught the attention of our stock screener as a great value stock. NYSE:OC excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.
Assessing Valuation for NYSE:OC
An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:OC has received a 8 out of 10:
- Based on the Price/Earnings ratio of 11.02, the valuation of OC can be described as reasonable.
- Based on the Price/Earnings ratio, OC is valued cheaper than 91.11% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.02. OC is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 10.59, the valuation of OC can be described as reasonable.
- OC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 88.89% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of OC to the average of the S&P500 Index (21.32), we can say OC is valued rather cheaply.
- 91.11% of the companies in the same industry are more expensive than OC, based on the Enterprise Value to EBITDA ratio.
- OC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OC is cheaper than 68.89% of the companies in the same industry.
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of OC may justify a higher PE ratio.
Exploring NYSE:OC's Profitability
ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:OC, the assigned 7 is a significant indicator of profitability:
- OC has a better Return On Assets (10.74%) than 71.11% of its industry peers.
- With a decent Return On Equity value of 23.29%, OC is doing good in the industry, outperforming 71.11% of the companies in the same industry.
- OC has a better Return On Invested Capital (13.22%) than 64.44% 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 80.00% of its industry peers.
- In the last couple of years the Profit Margin of OC has grown nicely.
- OC has a Operating Margin of 16.58%. This is in the better half of the industry: OC outperforms 77.78% of its industry peers.
- In the last couple of years the Operating Margin of OC has grown nicely.
- In the last couple of years the Gross Margin of OC has grown nicely.
A Closer Look at Health for NYSE:OC
A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:OC has received a 6 out of 10:
- An Altman-Z score of 3.52 indicates that OC is not in any danger for bankruptcy at the moment.
- The Debt to FCF ratio of OC is 2.57, which is a good value as it means it would take OC, 2.57 years of fcf income to pay off all of its debts.
- 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.
How do we evaluate the Growth for NYSE:OC?
ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:OC scores a 5 out of 10:
- The Earnings Per Share has grown by an nice 9.57% over the past year.
- Measured over the past years, OC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.62% on average per year.
- The Revenue has been growing by 8.86% on average over the past years. This is quite good.
More Decent Value stocks can be found in our Decent Value screener.
Check the latest full fundamental report of OC for a complete fundamental analysis.
Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.