OWENS CORNING (OC)

US6907421019 - Common Stock

169.41  -0.09 (-0.05%)

After market: 169.41 0 (0%)

Fundamental Rating

5

Overall OC gets a fundamental rating of 5 out of 10. We evaluated OC against 39 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 may be a bit undervalued, certainly considering the very reasonable score on growth



6

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.
Of the past 5 years OC 4 years were profitable.
Each year in the past 5 years OC had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of 6.88%, OC perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
With a Return On Equity value of 18.42%, OC perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
OC's Return On Invested Capital of 11.93% is in line compared to the rest of the industry. OC outperforms 53.85% of its industry peers.
OC had an Average Return On Invested Capital over the past 3 years of 14.40%. This is in line with the industry average of 13.33%.
Industry RankSector Rank
ROA 6.88%
ROE 18.42%
ROIC 11.93%
ROA(3y)10.71%
ROA(5y)6.43%
ROE(3y)24.48%
ROE(5y)14.47%
ROIC(3y)14.4%
ROIC(5y)11.68%

1.3 Margins

OC's Profit Margin of 9.92% is in line compared to the rest of the industry. OC outperforms 58.97% of its industry peers.
OC's Profit Margin has improved in the last couple of years.
OC has a better Operating Margin (18.64%) than 66.67% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
OC's Gross Margin of 29.94% is in line compared to the rest of the industry. OC outperforms 41.03% of its industry peers.
In the last couple of years the Gross Margin of OC has grown nicely.
Industry RankSector Rank
OM 18.64%
PM (TTM) 9.92%
GM 29.94%
OM growth 3Y13.65%
OM growth 5Y10.53%
PM growth 3YN/A
PM growth 5Y9.86%
GM growth 3Y7.46%
GM growth 5Y4.23%

3

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.
OC has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.65 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 2.65, OC is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
The Debt to FCF ratio of OC is 4.12, which is a neutral value as it means it would take OC, 4.12 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.12, OC perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that OC is somewhat dependend on debt financing.
OC has a worse Debt to Equity ratio (0.89) than 74.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 4.12
Altman-Z 2.65
ROIC/WACC1.19
WACC10.04%

2.3 Liquidity

A Current Ratio of 1.44 indicates that OC should not have too much problems paying its short term obligations.
The Current ratio of OC (1.44) is worse than 76.92% of its industry peers.
OC has a Quick Ratio of 1.44. This is a bad value and indicates that OC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.85, OC is doing worse than 82.05% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 0.85

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.07% over the past year.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.02% yearly.
OC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.09%.
OC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.52% yearly.
EPS 1Y (TTM)16.07%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%5.54%
Revenue 1Y (TTM)8.09%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%22.87%

3.2 Future

The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
OC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
EPS Next Y11.24%
EPS Next 2Y8.55%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue Next Year13.84%
Revenue Next 2Y11.34%
Revenue Next 3Y8.28%
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 accelerating.

8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.71, which indicates a very decent valuation of OC.
OC's Price/Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 89.74% of the companies in the same industry.
OC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 10.02, which indicates a very decent 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 89.74% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. OC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.71
Fwd PE 10.02

4.2 Price Multiples

89.74% of the companies in the same industry are more expensive than OC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, OC is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.94
EV/EBITDA 7.52

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)0.45
EPS Next 2Y8.55%
EPS Next 3Y8.18%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.63%, 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 1.05. OC pays more dividend than 94.87% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, OC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.63%

5.2 History

The dividend of OC is nicely growing with an annual growth rate of 20.43%!
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)20.43%
Div Incr Years6
Div Non Decr Years6

5.3 Sustainability

19.50% 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.
DP19.5%
EPS Next 2Y8.55%
EPS Next 3Y8.18%

OWENS CORNING

NYSE:OC (12/20/2024, 8:04:00 PM)

After market: 169.41 0 (0%)

169.41

-0.09 (-0.05%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners97.45%
Inst Owner Change-2.12%
Ins Owners0.88%
Ins Owner Change-0.24%
Market Cap14.53B
Analysts77.69
Price Target206.7 (22.01%)
Short Float %1.74%
Short Ratio1.92
Dividend
Industry RankSector Rank
Dividend Yield 1.63%
Dividend Growth(5Y)20.43%
DP19.5%
Div Incr Years6
Div Non Decr Years6
Ex-Date01-06 2025-01-06 (0.69)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.53%
Min EPS beat(2)4.15%
Max EPS beat(2)4.92%
EPS beat(4)4
Avg EPS beat(4)7.85%
Min EPS beat(4)4.15%
Max EPS beat(4)13.2%
EPS beat(8)8
Avg EPS beat(8)10.91%
EPS beat(12)12
Avg EPS beat(12)11.03%
EPS beat(16)15
Avg EPS beat(16)12.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-1.9%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)5.08%
PT rev (3m)7.27%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-11.28%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)11.6%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 10.71
Fwd PE 10.02
P/S 1.39
P/FCF 10.94
P/OCF 7.59
P/B 2.58
P/tB N/A
EV/EBITDA 7.52
EPS(TTM)15.82
EY9.34%
EPS(NY)16.91
Fwd EY9.98%
FCF(TTM)15.48
FCFY9.14%
OCF(TTM)22.31
OCFY13.17%
SpS121.7
BVpS65.55
TBVpS-0.17
PEG (NY)0.95
PEG (5Y)0.45
Profitability
Industry RankSector Rank
ROA 6.88%
ROE 18.42%
ROCE 15.73%
ROIC 11.93%
ROICexc 12.43%
ROICexgc 23.67%
OM 18.64%
PM (TTM) 9.92%
GM 29.94%
FCFM 12.72%
ROA(3y)10.71%
ROA(5y)6.43%
ROE(3y)24.48%
ROE(5y)14.47%
ROIC(3y)14.4%
ROIC(5y)11.68%
ROICexc(3y)16.82%
ROICexc(5y)13.32%
ROICexgc(3y)27.37%
ROICexgc(5y)21.75%
ROCE(3y)18.99%
ROCE(5y)15.4%
ROICexcg growth 3Y29%
ROICexcg growth 5Y19.36%
ROICexc growth 3Y26.42%
ROICexc growth 5Y21.14%
OM growth 3Y13.65%
OM growth 5Y10.53%
PM growth 3YN/A
PM growth 5Y9.86%
GM growth 3Y7.46%
GM growth 5Y4.23%
F-Score5
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 4.12
Debt/EBITDA 1.94
Cap/Depr 90.71%
Cap/Sales 5.61%
Interest Coverage 250
Cash Conversion 73.84%
Profit Quality 128.19%
Current Ratio 1.44
Quick Ratio 0.85
Altman-Z 2.65
F-Score5
WACC10.04%
ROIC/WACC1.19
Cap/Depr(3y)84.41%
Cap/Depr(5y)82.66%
Cap/Sales(3y)4.97%
Cap/Sales(5y)5.1%
Profit Quality(3y)104.96%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.07%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%5.54%
EPS Next Y11.24%
EPS Next 2Y8.55%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue 1Y (TTM)8.09%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%22.87%
Revenue Next Year13.84%
Revenue Next 2Y11.34%
Revenue Next 3Y8.28%
Revenue Next 5YN/A
EBIT growth 1Y21.55%
EBIT growth 3Y26.27%
EBIT growth 5Y17.74%
EBIT Next Year50.47%
EBIT Next 3Y17.68%
EBIT Next 5YN/A
FCF growth 1Y41.13%
FCF growth 3Y12.95%
FCF growth 5Y35.01%
OCF growth 1Y34.79%
OCF growth 3Y14.84%
OCF growth 5Y16.44%