OWENS CORNING (OC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OC - US6907421019 - Common Stock
115.56 USD
+4.15 (+3.72%)
115.56 USD
0 (0%)
Taking everything into account, OC scores 4 out of 10 in our fundamental rating. OC was compared to 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. OC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year OC was profitable.
OC had a positive operating cash flow in the past year.
OC had positive earnings in 4 of the past 5 years.
OC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OC's Return On Assets of -3.57% is on the low side compared to the rest of the industry. OC is outperformed by 73.17% of its industry peers.
The Return On Equity of OC (-10.96%) is worse than 73.17% of its industry peers.
The Return On Invested Capital of OC (11.83%) is better than 68.29% 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 12.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -10.96% | ||
| ROIC | 11.83% |
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 has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 16.48%, OC is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
OC's Operating Margin has improved in the last couple of years.
OC's Gross Margin of 29.42% is in line compared to the rest of the industry. OC outperforms 46.34% of its industry peers.
In the last couple of years the Gross Margin of OC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.48% | ||
| PM (TTM) | N/A | ||
| GM | 29.42% |
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.
The number of shares outstanding for OC has been reduced compared to 1 year ago.
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
OC has an Altman-Z score of 2.43. 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 2.43, OC is doing worse than 78.05% of the companies in the same industry.
OC has a debt to FCF ratio of 4.65. This is a neutral value as OC would need 4.65 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.65, OC perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
OC has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
OC has a Debt to Equity ratio of 1.07. This is amonst the worse of the industry: OC underperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.39
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.40 indicates that OC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, OC is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that OC may have some problems paying its short term obligations.
OC has a worse Quick ratio (0.86) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
OC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.06%.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.98% yearly.
The Revenue has been growing slightly by 3.47% in the past year.
OC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.92% yearly.
EPS 1Y (TTM)-11.06%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-16.21%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
3.2 Future
Based on estimates for the next years, OC will show a decrease in Earnings Per Share. The EPS will decrease by -0.69% on average per year.
Based on estimates for the next years, OC will show a decrease in Revenue. The Revenue will decrease by -0.69% on average per year.
EPS Next Y-20.58%
EPS Next 2Y-16.23%
EPS Next 3Y-5.31%
EPS Next 5Y-0.69%
Revenue Next Year-7.38%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.42%
Revenue Next 5Y-0.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.21, 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 95.12% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. OC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.40, the valuation of OC can be described as reasonable.
Based on the Price/Forward Earnings ratio, OC is valued cheaper than 92.68% of the companies in the same industry.
OC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
97.56% of the companies in the same industry are more expensive than OC, based on the Enterprise Value to EBITDA ratio.
OC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OC is cheaper than 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
OC's earnings are expected to decrease with -5.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-16.23%
EPS Next 3Y-5.31%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
The stock price of OC dropped by -24.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.31, OC pays a better dividend. On top of this OC pays more dividend than 97.56% of the companies listed in the same industry.
OC's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
On average, the dividend of OC grows each year by 22.67%, which is quite nice.
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
The earnings of OC are negative and hence is the payout ratio. OC will probably not be able to sustain this dividend level.
DP-47.3%
EPS Next 2Y-16.23%
EPS Next 3Y-5.31%
115.56
+4.15 (+3.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.76%
Inst Owner Change2.67%
Ins Owners0.9%
Ins Owner Change0.43%
Market Cap9.50B
Revenue(TTM)10.80B
Net Income(TTM)-482.00M
Analysts78.57
Price Target143.89 (24.52%)
Short Float %3.24%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP-47.3%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-3.93%
Max EPS beat(2)7.07%
EPS beat(4)3
Avg EPS beat(4)2.82%
Min EPS beat(4)-3.93%
Max EPS beat(4)7.62%
EPS beat(8)7
Avg EPS beat(8)5.34%
EPS beat(12)11
Avg EPS beat(12)8.21%
EPS beat(16)15
Avg EPS beat(16)8.98%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-1.85%
Revenue beat(12)1
Avg Revenue beat(12)-1.75%
Revenue beat(16)3
Avg Revenue beat(16)-1.44%
PT rev (1m)-16.25%
PT rev (3m)-20.02%
EPS NQ rev (1m)-20.98%
EPS NQ rev (3m)-49.53%
EPS NY rev (1m)-9.71%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)-2.33%
Revenue NQ rev (3m)-12.34%
Revenue NY rev (1m)-2.85%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 10.4 | ||
| P/S | 0.88 | ||
| P/FCF | 8.57 | ||
| P/OCF | 5.07 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.62 |
EPS(TTM)14.07
EY12.18%
EPS(NY)11.11
Fwd EY9.61%
FCF(TTM)13.48
FCFY11.67%
OCF(TTM)22.78
OCFY19.71%
SpS131.42
BVpS53.52
TBVpS-2.91
PEG (NY)N/A
PEG (5Y)0.29
Graham Number130.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -10.96% | ||
| ROCE | 16.41% | ||
| ROIC | 11.83% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 21.6% | ||
| OM | 16.48% | ||
| PM (TTM) | N/A | ||
| GM | 29.42% | ||
| FCFM | 10.26% |
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%
ROICexgc growth 3Y2.09%
ROICexgc 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 108.06% | ||
| Cap/Sales | 7.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.43 |
F-Score4
WACC8.52%
ROIC/WACC1.39
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)-11.06%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-16.21%
EPS Next Y-20.58%
EPS Next 2Y-16.23%
EPS Next 3Y-5.31%
EPS Next 5Y-0.69%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
Revenue Next Year-7.38%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.42%
Revenue Next 5Y-0.69%
EBIT growth 1Y-8.53%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year13.3%
EBIT Next 3Y3.28%
EBIT Next 5Y2.49%
FCF growth 1Y-4.97%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y10.38%
OCF growth 3Y7.97%
OCF growth 5Y12.78%
OWENS CORNING / OC FAQ
What is the fundamental rating for OC stock?
ChartMill assigns a fundamental rating of 4 / 10 to OC.
What is the valuation status of OWENS CORNING (OC) stock?
ChartMill assigns a valuation rating of 7 / 10 to OWENS CORNING (OC). This can be considered as Undervalued.
Can you provide the profitability details for OWENS CORNING?
OWENS CORNING (OC) has a profitability rating of 5 / 10.
What is the financial health of OWENS CORNING (OC) stock?
The financial health rating of OWENS CORNING (OC) is 3 / 10.
Can you provide the expected EPS growth for OC stock?
The Earnings per Share (EPS) of OWENS CORNING (OC) is expected to decline by -20.58% in the next year.