NYSE:OC appears to be flying under the radar despite its strong fundamentals.

Last update: Aug 8, 2024

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.

What does the Valuation looks like for NYSE:OC

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:OC has achieved a 8 out of 10:

With a Price/Earnings ratio of 9.88, the valuation of OC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 95.00% of the companies listed in the same industry.
OC is valuated cheaply when we compare the Price/Earnings ratio to 28.36, which is the current average of the S&P500 Index.
OC is valuated reasonably with a Price/Forward Earnings ratio of 9.11.
Based on the Price/Forward Earnings ratio, OC is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
OC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.01, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OC indicates a rather cheap valuation: OC is cheaper than 95.00% of the companies listed in the same industry.
OC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OC is cheaper than 72.50% 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.
OC has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Assessment of 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:

The Return On Equity of OC (21.27%) is better than 62.50% of its industry peers.
OC has a Return On Invested Capital of 15.71%. This is in the better half of the industry: OC outperforms 70.00% of its industry peers.
The last Return On Invested Capital (15.71%) for OC is above the 3 year average (14.40%), which is a sign of increasing profitability.
OC's Profit Margin of 11.53% is fine compared to the rest of the industry. OC outperforms 62.50% of its industry peers.
OC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.32%, OC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of OC has grown nicely.
OC's Gross Margin has improved in the last couple of years.

Health Insights: 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 3.54 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.
Although OC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Growth Assessment of 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:

OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.46%, which is quite good.
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.
OC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.60% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of OC contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.