OWENS CORNING (OC) Stock Fundamental Analysis
USA - NYSE:OC - US6907421019 - Common Stock
104.2 USD
-0.74 (-0.71%)
104.2 USD
0 (0%)
Overall OC gets a fundamental rating of 4 out of 10. We evaluated OC against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
In the past 5 years OC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.30%, OC is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
With a Return On Equity value of 6.45%, OC is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
OC's Return On Invested Capital of 10.94% is fine compared to the rest of the industry. OC outperforms 65.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OC is in line with the industry average of 12.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.45% | ||
| ROIC | 10.94% |
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 has a Profit Margin of 2.98%. This is in the lower half of the industry: OC underperforms 68.29% of its industry peers.
In the last couple of years the Profit Margin of OC has remained more or less at the same level.
With a decent Operating Margin value of 16.69%, OC is doing good in the industry, outperforming 63.41% of the companies in the same industry.
In the last couple of years the Operating Margin of OC has grown nicely.
OC has a Gross Margin (29.56%) 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 | 16.69% | ||
| PM (TTM) | 2.98% | ||
| GM | 29.56% |
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.
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
An Altman-Z score of 2.39 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.39, OC is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
The Debt to FCF ratio of OC is 6.06, which is on the high side as it means it would take OC, 6.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.06, OC is doing worse than 60.98% 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's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. OC is outperformed by 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.19
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.52 indicates that OC should not have too much problems paying its short term obligations.
OC has a Current ratio of 1.52. This is in the lower half of the industry: OC underperforms 70.73% of its industry peers.
OC has a Quick Ratio of 1.52. This is a bad value and indicates that OC is not financially healthy enough and could expect problems in meeting its short term obligations.
OC has a Quick ratio of 0.95. This is in the lower half of the industry: OC underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.95 |
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.
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)-11.06%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-16.21%
Revenue 1Y (TTM)13.41%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
3.2 Future
OC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.05% yearly.
OC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.13% yearly.
EPS Next Y-12.04%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
EPS Next 5Y5.05%
Revenue Next Year-4.65%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.15%
Revenue Next 5Y2.13%
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 7.41, the valuation of OC can be described as very cheap.
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 26.06. OC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.26, the valuation of OC can be described as very cheap.
Based on the Price/Forward Earnings ratio, OC is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
OC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OC indicates a rather cheap valuation: OC is cheaper than 97.56% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.63%.
In the last 3 months the price of OC has falen by -27.58%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.32, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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
OC pays out 66.67% of its income as dividend. This is not a sustainable payout ratio.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.67%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
104.2
-0.74 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change-1.38%
Ins Owners0.88%
Ins Owner Change0.16%
Market Cap8.71B
Revenue(TTM)10.97B
Net Income(TTM)333.00M
Analysts79.29
Price Target171.82 (64.89%)
Short Float %2.65%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP66.67%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.79%
Min EPS beat(2)0.52%
Max EPS beat(2)7.07%
EPS beat(4)4
Avg EPS beat(4)5.03%
Min EPS beat(4)0.52%
Max EPS beat(4)7.62%
EPS beat(8)8
Avg EPS beat(8)6.5%
EPS beat(12)12
Avg EPS beat(12)9.25%
EPS beat(16)15
Avg EPS beat(16)9.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.78%
Revenue beat(16)3
Avg Revenue beat(16)-1.29%
PT rev (1m)-4.68%
PT rev (3m)-2.06%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)-1.56%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 7.26 | ||
| P/S | 0.78 | ||
| P/FCF | 9.53 | ||
| P/OCF | 5.27 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.29 |
EPS(TTM)14.07
EY13.5%
EPS(NY)14.36
Fwd EY13.78%
FCF(TTM)10.93
FCFY10.49%
OCF(TTM)19.77
OCFY18.97%
SpS133.48
BVpS61.74
TBVpS-3.77
PEG (NY)N/A
PEG (5Y)0.26
Graham Number139.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.45% | ||
| ROCE | 15.64% | ||
| ROIC | 10.94% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 20.37% | ||
| OM | 16.69% | ||
| PM (TTM) | 2.98% | ||
| GM | 29.56% | ||
| FCFM | 8.19% |
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.06 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 104.09% | ||
| Cap/Sales | 6.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.24% | ||
| Profit Quality | 274.47% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.39 |
F-Score6
WACC9.17%
ROIC/WACC1.19
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-12.04%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
EPS Next 5Y5.05%
Revenue 1Y (TTM)13.41%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
Revenue Next Year-4.65%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.15%
Revenue Next 5Y2.13%
EBIT growth 1Y-1.11%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year22.3%
EBIT Next 3Y9.17%
EBIT Next 5Y8.09%
FCF growth 1Y-3.99%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y12.76%
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 2 / 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 -12.04% in the next year.