OWENS CORNING (OC) Stock Fundamental Analysis
NYSE:OC - New York Stock Exchange, Inc. - US6907421019 - Common Stock - Currency: USD
Overall OC gets a fundamental rating of 5 out of 10. We evaluated OC against 41 industry peers in the Building Products industry. OC has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on OC.
1. Profitability
1.1 Basic Checks
OC had positive earnings in the past year.
OC had a positive operating cash flow in the past year.
OC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years OC had a positive operating cash flow.
1.2 Ratios
OC has a Return On Assets of 4.60%. This is in the lower half of the industry: OC underperforms 63.41% of its industry peers.
OC's Return On Equity of 12.74% is in line compared to the rest of the industry. OC outperforms 51.22% of its industry peers.
With a Return On Invested Capital value of 11.79%, OC perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OC is in line with the industry average of 12.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 12.74% | ||
| ROIC | 11.79% |
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 5.90% is on the low side compared to the rest of the industry. OC is outperformed by 63.41% of its industry peers.
OC's Profit Margin has been stable in the last couple of years.
OC's Operating Margin of 17.49% is fine compared to the rest of the industry. OC outperforms 70.73% of its industry peers.
In the last couple of years the Operating Margin of OC has grown nicely.
OC has a Gross Margin (29.84%) which is comparable to the rest of the industry.
OC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 5.9% | ||
| GM | 29.84% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OC is still creating some value.
OC has less shares outstanding than it did 1 year ago.
OC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, OC has a worse debt to assets ratio.
2.2 Solvency
OC has an Altman-Z score of 2.63. 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.
OC's Altman-Z score of 2.63 is on the low side compared to the rest of the industry. OC is outperformed by 65.85% of its industry peers.
OC has a debt to FCF ratio of 4.14. This is a neutral value as OC would need 4.14 years to pay back of all of its debts.
The Debt to FCF ratio of OC (4.14) is comparable to the rest of the industry.
OC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.01, OC is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.2
WACC9.83%
2.3 Liquidity
OC has a Current Ratio of 1.47. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
OC's Current ratio of 1.47 is on the low side compared to the rest of the industry. OC is outperformed by 73.17% of its industry peers.
A Quick Ratio of 0.78 indicates that OC may have some problems paying its short term obligations.
The Quick ratio of OC (0.78) is worse than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.31%, which is quite good.
The Earnings Per Share has been growing by 27.98% on average over the past years. This is a very strong growth
OC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.41%.
Measured over the past years, OC shows a quite strong growth in Revenue. The Revenue has been growing by 8.92% on average per year.
EPS 1Y (TTM)10.31%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%0.31%
Revenue 1Y (TTM)13.41%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%23.26%
3.2 Future
Based on estimates for the next years, OC will show a small growth in Earnings Per Share. The EPS will grow by 4.91% on average per year.
Based on estimates for the next years, OC will show a small growth in Revenue. The Revenue will grow by 1.48% on average per year.
EPS Next Y-5.37%
EPS Next 2Y1.71%
EPS Next 3Y4.91%
EPS Next 5YN/A
Revenue Next Year-3.15%
Revenue Next 2Y-0.44%
Revenue Next 3Y1.48%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 8.71, the valuation of OC can be described as very reasonable.
87.80% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
OC is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.20, which indicates a very decent valuation of OC.
Based on the Price/Forward Earnings ratio, OC is valued cheaper than 90.24% of the companies in the same industry.
OC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
85.37% 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 | 9.47 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y1.71%
EPS Next 3Y4.91%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.00%.
In the last 3 months the price of OC has falen by -24.56%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
OC's Dividend Yield is rather good when compared to the industry average which is at 1.28. OC pays more dividend than 92.68% of the companies in the same industry.
OC's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
The dividend of OC is nicely growing with an annual growth rate of 22.67%!
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)22.67%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
32.15% of the earnings are spent on dividend by OC. This is a low number and sustainable payout ratio.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.15%
EPS Next 2Y1.71%
EPS Next 3Y4.91%
137.82
+1.19 (+0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95.84%
Inst Owner Change0.39%
Ins Owners0.89%
Ins Owner Change2.6%
Market Cap11.79B
Analysts78.46
Price Target201.03 (45.86%)
Short Float %1.2%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP32.15%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.27%
Min EPS beat(2)4.92%
Max EPS beat(2)7.62%
EPS beat(4)4
Avg EPS beat(4)7.47%
Min EPS beat(4)4.15%
Max EPS beat(4)13.2%
EPS beat(8)8
Avg EPS beat(8)11.57%
EPS beat(12)12
Avg EPS beat(12)10.69%
EPS beat(16)15
Avg EPS beat(16)10.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.68%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)2
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)-1.28%
PT rev (3m)-5.99%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-18.34%
EPS NY rev (1m)-10.72%
EPS NY rev (3m)-11.41%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-13.34%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)-10.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 9.2 | ||
| P/S | 1.07 | ||
| P/FCF | 9.47 | ||
| P/OCF | 6.23 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.39 |
EPS(TTM)15.83
EY11.49%
EPS(NY)14.98
Fwd EY10.87%
FCF(TTM)14.55
FCFY10.56%
OCF(TTM)22.12
OCFY16.05%
SpS128.3
BVpS59.35
TBVpS-5.31
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 12.74% | ||
| ROCE | 16.29% | ||
| ROIC | 11.79% | ||
| ROICexc | 12.17% | ||
| ROICexgc | 23.6% | ||
| OM | 17.49% | ||
| PM (TTM) | 5.9% | ||
| GM | 29.84% | ||
| FCFM | 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%
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 95.57% | ||
| Cap/Sales | 5.9% | ||
| Interest Coverage | 8.49 | ||
| Cash Conversion | 72.88% | ||
| Profit Quality | 192.43% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.63 |
F-Score5
WACC9.83%
ROIC/WACC1.2
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)10.31%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%0.31%
EPS Next Y-5.37%
EPS Next 2Y1.71%
EPS Next 3Y4.91%
EPS Next 5YN/A
Revenue 1Y (TTM)13.41%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%23.26%
Revenue Next Year-3.15%
Revenue Next 2Y-0.44%
Revenue Next 3Y1.48%
Revenue Next 5YN/A
EBIT growth 1Y7.09%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year29.27%
EBIT Next 3Y12.37%
EBIT Next 5YN/A
FCF growth 1Y4.36%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y10.06%
OCF growth 3Y7.97%
OCF growth 5Y12.78%