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 41 industry peers in the Building Products industry. There are concerns on the financial health of OC while its profitability can be described as average. OC is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
OC had positive earnings in the past year.
In the past year OC had a positive cash flow from operations.
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
The Return On Assets of OC (1.79%) is worse than 75.61% of its industry peers.
With a Return On Equity value of 5.22%, OC is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
The Return On Invested Capital of OC (11.34%) is better than 63.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OC is in line with the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 5.22% | ||
| ROIC | 11.34% |
ROA(3y)8.93%
ROA(5y)6.54%
ROE(3y)21.01%
ROE(5y)15.27%
ROIC(3y)13.46%
ROIC(5y)12.21%
1.3 Margins
OC's Profit Margin of 2.28% is on the low side compared to the rest of the industry. OC is outperformed by 75.61% of its industry peers.
In the last couple of years the Profit Margin of OC has remained more or less at the same level.
OC's Operating Margin of 16.84% is fine compared to the rest of the industry. OC outperforms 65.85% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
OC's Gross Margin of 29.57% is in line compared to the rest of the industry. OC outperforms 41.46% of its industry peers.
OC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 2.28% | ||
| GM | 29.57% |
OM growth 3Y0.68%
OM growth 5Y9.95%
PM growth 3Y-20.45%
PM growth 5Y0.83%
GM growth 3Y4.35%
GM growth 5Y5.64%
2. Health
2.1 Basic Checks
OC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, OC has less shares outstanding
The number of shares outstanding for OC has been reduced compared to 5 years ago.
The debt/assets ratio for OC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.61 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of OC (2.61) is worse than 70.73% of its industry peers.
The Debt to FCF ratio of OC is 4.98, which is a neutral value as it means it would take OC, 4.98 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.98, OC perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
OC has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of OC (1.14) is worse than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.18
WACC9.62%
2.3 Liquidity
A Current Ratio of 1.44 indicates that OC should not have too much problems paying its short term obligations.
OC has a Current ratio of 1.44. This is in the lower half of the industry: OC underperforms 75.61% of its industry peers.
A Quick Ratio of 0.93 indicates that OC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.93, OC is doing worse than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
OC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.26%.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.98% yearly.
Looking at the last year, OC shows a quite strong growth in Revenue. The Revenue has grown by 16.16% in the last year.
The Revenue has been growing by 8.92% on average over the past years. This is quite good.
EPS 1Y (TTM)0.26%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-17.27%
Revenue 1Y (TTM)16.16%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
3.2 Future
The Earnings Per Share is expected to grow by 5.03% on average over the next years.
OC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y-12.29%
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
EPS Next 5Y5.03%
Revenue Next Year-4.82%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.77%
Revenue Next 5Y1.92%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.55 indicates a reasonable valuation of OC.
95.12% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, OC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.60 indicates a reasonable 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 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 95.12% of the companies in the same industry.
92.68% of the companies in the same industry are more expensive than OC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.02 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.01%. 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 1.19. OC pays more dividend than 95.12% of the companies in the same industry.
OC's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
On average, the dividend of OC grows each year by 22.67%, which is quite nice.
OC has paid a dividend for at least 10 years, which is 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)22.67%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
84.31% of the earnings are spent on dividend by OC. This is not a sustainable payout ratio.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.31%
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
145.26
-0.31 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95.68%
Inst Owner Change2.7%
Ins Owners0.88%
Ins Owner Change3.31%
Market Cap12.35B
Analysts80
Price Target174.38 (20.05%)
Short Float %2.29%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP84.31%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.07%
Min EPS beat(2)0.52%
Max EPS beat(2)7.62%
EPS beat(4)4
Avg EPS beat(4)4.3%
Min EPS beat(4)0.52%
Max EPS beat(4)7.62%
EPS beat(8)8
Avg EPS beat(8)8.97%
EPS beat(12)12
Avg EPS beat(12)9.62%
EPS beat(16)15
Avg EPS beat(16)9.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.83%
Revenue beat(16)4
Avg Revenue beat(16)-0.66%
PT rev (1m)-6.01%
PT rev (3m)-14.37%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-10.1%
EPS NY rev (1m)-1.48%
EPS NY rev (3m)-17.25%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 9.6 | ||
| P/S | 1.1 | ||
| P/FCF | 11.02 | ||
| P/OCF | 6.79 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)15.21
EY10.47%
EPS(NY)15.13
Fwd EY10.42%
FCF(TTM)13.18
FCFY9.07%
OCF(TTM)21.39
OCFY14.72%
SpS131.75
BVpS57.4
TBVpS-6.35
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 5.22% | ||
| ROCE | 16.34% | ||
| ROIC | 11.34% | ||
| ROICexc | 11.73% | ||
| ROICexgc | 21.95% | ||
| OM | 16.84% | ||
| PM (TTM) | 2.28% | ||
| GM | 29.57% | ||
| FCFM | 10% |
ROA(3y)8.93%
ROA(5y)6.54%
ROE(3y)21.01%
ROE(5y)15.27%
ROIC(3y)13.46%
ROIC(5y)12.21%
ROICexc(3y)15.33%
ROICexc(5y)13.82%
ROICexgc(3y)26.6%
ROICexgc(5y)23.16%
ROCE(3y)18.59%
ROCE(5y)16.87%
ROICexcg growth 3Y2.09%
ROICexcg growth 5Y15.22%
ROICexc growth 3Y-5.29%
ROICexc growth 5Y12.91%
OM growth 3Y0.68%
OM growth 5Y9.95%
PM growth 3Y-20.45%
PM growth 5Y0.83%
GM growth 3Y4.35%
GM growth 5Y5.64%
F-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 99.01% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | 439.61% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.61 |
F-Score4
WACC9.62%
ROIC/WACC1.18
Cap/Depr(3y)88.64%
Cap/Depr(5y)82.21%
Cap/Sales(3y)5.3%
Cap/Sales(5y)5.03%
Profit Quality(3y)132.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.26%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-17.27%
EPS Next Y-12.29%
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
EPS Next 5Y5.03%
Revenue 1Y (TTM)16.16%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
Revenue Next Year-4.82%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.77%
Revenue Next 5Y1.92%
EBIT growth 1Y1.23%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year21.67%
EBIT Next 3Y9.77%
EBIT Next 5Y8.46%
FCF growth 1Y19.13%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y26.5%
OCF growth 3Y7.97%
OCF growth 5Y12.78%