For those who appreciate value investing, NYSE:OC is a compelling option with its solid fundamentals.

Last update: Jul 3, 2024

Discover OWENS CORNING (NYSE:OC), an undervalued stock highlighted by our stock screener. NYSE:OC showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

How do we evaluate the Valuation for NYSE:OC?

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:OC was assigned a score of 7 for valuation:

OC is valuated reasonably with a Price/Earnings ratio of 11.10.
Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 85.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OC to the average of the S&P500 Index (28.32), we can say OC is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.22, the valuation of OC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 85.00% of the companies listed in the same industry.
OC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.13, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
OC has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for NYSE:OC

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:OC was assigned a score of 7 for profitability:

The Return On Equity of OC (21.27%) is better than 67.50% of its industry peers.
The Return On Invested Capital of OC (15.71%) is better than 70.00% of its industry peers.
The 3 year average ROIC (14.40%) for OC is below the current ROIC(15.71%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 11.53%, OC is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
OC's Profit Margin has improved in the last couple of years.
OC has a better Operating Margin (19.32%) than 75.00% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of OC has grown nicely.

Health Assessment of NYSE:OC

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:OC has achieved a 5 out of 10:

An Altman-Z score of 3.66 indicates that OC is not in any danger for bankruptcy at the moment.
The Debt to FCF ratio of OC is 2.22, which is a good value as it means it would take OC, 2.22 years of fcf income to pay off all of its debts.
Even though the debt/equity ratio score it not favorable for OC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Growth Analysis for NYSE:OC

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:OC has received a 4 out of 10:

The Earnings Per Share has grown by an nice 19.83% 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 24.02% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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.