OWENS CORNING (OC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OC - US6907421019 - Common Stock
121.21 USD
-1.45 (-1.18%)
121.21 USD
0 (0%)
OC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. While OC is still in line with the averages on profitability rating, there are concerns on its financial health. OC is cheap, but on the other hand it scores bad on growth.
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.
- OC had positive earnings in 4 of the past 5 years.
- In the past 5 years OC always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of -3.57%, OC is doing worse than 76.19% of the companies in the same industry.
- The Return On Equity of OC (-10.96%) is worse than 73.81% of its industry peers.
- The Return On Invested Capital of OC (11.83%) is better than 64.29% of its industry peers.
- OC had an Average Return On Invested Capital over the past 3 years of 13.46%. This is in line with the industry average of 12.68%.
| 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
- In the last couple of years the Profit Margin of OC has remained more or less at the same level.
- OC has a better Operating Margin (16.48%) than 64.29% of its industry peers.
- In the last couple of years the Operating Margin of OC has grown nicely.
- OC has a Gross Margin of 29.42%. This is comparable to the rest of the industry: OC outperforms 47.62% of its industry peers.
- OC's Gross Margin has improved in the last couple of years.
| 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
- 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 a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.49 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of OC (2.49) is worse than 73.81% of its industry peers.
- The Debt to FCF ratio of OC is 4.65, which is a neutral value as it means it would take OC, 4.65 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of OC (4.65) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that OC has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.07, OC is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.36
WACC8.69%
2.3 Liquidity
- OC has a Current Ratio of 1.40. 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 1.40. This is in the lower half of the industry: OC underperforms 78.57% of its industry peers.
- A Quick Ratio of 0.86 indicates that OC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.86, OC is doing worse than 78.57% of the companies in the same industry.
| 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%.
- Measured over the past years, OC shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.98% on average per year.
- The Revenue has been growing slightly by 3.47% in the past year.
- 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)-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-20.56%
EPS Next 2Y-16.73%
EPS Next 3Y-6.28%
EPS Next 5Y-0.69%
Revenue Next Year-7.38%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.48%
Revenue Next 5Y-0.69%
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.
- 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
- OC is valuated reasonably with a Price/Earnings ratio of 8.61.
- Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 95.24% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. OC is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.04 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 90.48% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. OC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OC is valued cheaper than 97.62% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of OC indicates a rather cheap valuation: OC is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
- A cheap valuation may be justified as OC's earnings are expected to decrease with -6.28% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-16.73%
EPS Next 3Y-6.28%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.52%, OC has a reasonable but not impressive dividend return.
- OC's Dividend Yield is rather good when compared to the industry average which is at 0.66. OC pays more dividend than 97.62% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, OC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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.
- OC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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-16.73%
EPS Next 3Y-6.28%
OWENS CORNING / OC FAQ
What is the fundamental rating for OC stock?
ChartMill assigns a fundamental rating of 4 / 10 to OC.
Can you provide the valuation status for OWENS CORNING?
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.
How financially healthy is OWENS CORNING?
The financial health rating of OWENS CORNING (OC) is 3 / 10.
Is the dividend of OWENS CORNING sustainable?
The dividend rating of OWENS CORNING (OC) is 5 / 10 and the dividend payout ratio is -47.3%.