OWENS CORNING (OC) Stock Fundamental Analysis
NYSE:OC - New York Stock Exchange, Inc. - US6907421019 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to OC. OC was compared to 40 industry peers in the Building Products industry. OC has a medium profitability rating, but doesn't score so well on its financial health evaluation. OC is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year OC was profitable.
OC had a positive operating cash flow in the past year.
Of the past 5 years OC 4 years were profitable.
OC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.88%, OC is in line with its industry, outperforming 47.50% of the companies in the same industry.
OC's Return On Equity of 18.42% is in line compared to the rest of the industry. OC outperforms 60.00% of its industry peers.
OC has a Return On Invested Capital (11.93%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for OC is in line with the industry average of 13.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 18.42% | ||
| ROIC | 11.93% |
ROA(3y)10.71%
ROA(5y)6.43%
ROE(3y)24.48%
ROE(5y)14.47%
ROIC(3y)14.4%
ROIC(5y)11.68%
1.3 Margins
The Profit Margin of OC (9.92%) is comparable to the rest of the industry.
OC's Profit Margin has improved in the last couple of years.
The Operating Margin of OC (18.64%) is better than 67.50% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
OC has a Gross Margin (29.94%) which is in line with its industry peers.
In the last couple of years the Gross Margin of OC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.64% | ||
| PM (TTM) | 9.92% | ||
| GM | 29.94% |
OM growth 3Y13.65%
OM growth 5Y10.53%
PM growth 3YN/A
PM growth 5Y9.86%
GM growth 3Y7.46%
GM growth 5Y4.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OC is creating some value.
The number of shares outstanding for OC has been reduced compared to 1 year ago.
Compared to 5 years ago, OC has less shares outstanding
Compared to 1 year ago, OC has an improved debt to assets ratio.
2.2 Solvency
OC has an Altman-Z score of 2.67. This is not the best score and indicates that OC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.67, OC is doing worse than 67.50% of the companies in the same industry.
The Debt to FCF ratio of OC is 4.12, which is a neutral value as it means it would take OC, 4.12 years of fcf income to pay off all of its debts.
OC has a Debt to FCF ratio (4.12) which is in line with its industry peers.
OC has a Debt/Equity ratio of 0.89. This is a neutral value indicating OC is somewhat dependend on debt financing.
The Debt to Equity ratio of OC (0.89) is worse than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.17
WACC10.2%
2.3 Liquidity
OC has a Current Ratio of 1.44. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
OC has a Current ratio of 1.44. This is in the lower half of the industry: OC underperforms 77.50% of its industry peers.
A Quick Ratio of 0.85 indicates that OC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, OC is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.07%, 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 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.09%.
Measured over the past years, OC shows a small growth in Revenue. The Revenue has been growing by 6.52% on average per year.
EPS 1Y (TTM)16.07%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%5.54%
Revenue 1Y (TTM)8.09%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%22.87%
3.2 Future
The Earnings Per Share is expected to grow by 8.19% on average over the next years. This is quite good.
OC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.13% yearly.
EPS Next Y11.33%
EPS Next 2Y8.13%
EPS Next 3Y8.05%
EPS Next 5Y8.19%
Revenue Next Year13.86%
Revenue Next 2Y11.19%
Revenue Next 3Y8.19%
Revenue Next 5Y7.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.46, the valuation of OC can be described as very reasonable.
OC's Price/Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 85.00% of the companies in the same industry.
OC is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.86, the valuation of OC can be described as 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
OC's 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.
PEG (NY)0.92
PEG (5Y)0.44
EPS Next 2Y8.13%
EPS Next 3Y8.05%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
OC's Dividend Yield is rather good when compared to the industry average which is at 1.10. OC pays more dividend than 87.50% of the companies in the same industry.
OC's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of OC is nicely growing with an annual growth rate of 20.43%!
OC has been paying a dividend for at least 10 years, so it has a reliable track record.
As OC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)20.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
OC pays out 19.50% of its income as dividend. This is a sustainable payout ratio.
The dividend of OC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.5%
EPS Next 2Y8.13%
EPS Next 3Y8.05%
165.46
-6.64 (-3.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change-0.91%
Ins Owners0.88%
Ins Owner Change-0.2%
Market Cap14.19B
Analysts79.23
Price Target213.33 (28.93%)
Short Float %1.2%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend2.1
Dividend Growth(5Y)20.43%
DP19.5%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.53%
Min EPS beat(2)4.15%
Max EPS beat(2)4.92%
EPS beat(4)4
Avg EPS beat(4)7.85%
Min EPS beat(4)4.15%
Max EPS beat(4)13.2%
EPS beat(8)8
Avg EPS beat(8)10.91%
EPS beat(12)12
Avg EPS beat(12)11.03%
EPS beat(16)15
Avg EPS beat(16)12.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-1.9%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)-0.24%
PT rev (3m)8.45%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 9.86 | ||
| P/S | 1.36 | ||
| P/FCF | 10.69 | ||
| P/OCF | 7.42 | ||
| P/B | 2.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.61 |
EPS(TTM)15.82
EY9.56%
EPS(NY)16.78
Fwd EY10.14%
FCF(TTM)15.48
FCFY9.36%
OCF(TTM)22.31
OCFY13.49%
SpS121.7
BVpS65.55
TBVpS-0.17
PEG (NY)0.92
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 18.42% | ||
| ROCE | 15.73% | ||
| ROIC | 11.93% | ||
| ROICexc | 12.43% | ||
| ROICexgc | 23.67% | ||
| OM | 18.64% | ||
| PM (TTM) | 9.92% | ||
| GM | 29.94% | ||
| FCFM | 12.72% |
ROA(3y)10.71%
ROA(5y)6.43%
ROE(3y)24.48%
ROE(5y)14.47%
ROIC(3y)14.4%
ROIC(5y)11.68%
ROICexc(3y)16.82%
ROICexc(5y)13.32%
ROICexgc(3y)27.37%
ROICexgc(5y)21.75%
ROCE(3y)18.99%
ROCE(5y)15.4%
ROICexcg growth 3Y29%
ROICexcg growth 5Y19.36%
ROICexc growth 3Y26.42%
ROICexc growth 5Y21.14%
OM growth 3Y13.65%
OM growth 5Y10.53%
PM growth 3YN/A
PM growth 5Y9.86%
GM growth 3Y7.46%
GM growth 5Y4.23%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 4.12 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 90.71% | ||
| Cap/Sales | 5.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.84% | ||
| Profit Quality | 128.19% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.67 |
F-Score5
WACC10.2%
ROIC/WACC1.17
Cap/Depr(3y)84.41%
Cap/Depr(5y)82.66%
Cap/Sales(3y)4.97%
Cap/Sales(5y)5.1%
Profit Quality(3y)104.96%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.07%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%5.54%
EPS Next Y11.33%
EPS Next 2Y8.13%
EPS Next 3Y8.05%
EPS Next 5Y8.19%
Revenue 1Y (TTM)8.09%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%22.87%
Revenue Next Year13.86%
Revenue Next 2Y11.19%
Revenue Next 3Y8.19%
Revenue Next 5Y7.13%
EBIT growth 1Y21.55%
EBIT growth 3Y26.27%
EBIT growth 5Y17.74%
EBIT Next Year50.47%
EBIT Next 3Y17.94%
EBIT Next 5Y8.05%
FCF growth 1Y41.13%
FCF growth 3Y12.95%
FCF growth 5Y35.01%
OCF growth 1Y34.79%
OCF growth 3Y14.84%
OCF growth 5Y16.44%