OWENS CORNING (OC)
US6907421019 - Common Stock
We assign a fundamental rating of 5 out of 10 to OC. OC was compared to 39 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
In the past year OC was profitable.
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
The Return On Assets of OC (6.88%) is comparable to the rest of the industry.
OC's Return On Equity of 18.42% is in line compared to the rest of the industry. OC outperforms 56.41% of its industry peers.
OC has a Return On Invested Capital (11.93%) which is comparable to the rest of the industry.
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 13.67%.
| Industry Rank | Sector 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 has a Profit Margin (9.92%) which is comparable to the rest of the industry.
OC's Profit Margin has improved in the last couple of years.
OC has a Operating Margin of 18.64%. This is in the better half of the industry: OC outperforms 66.67% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
The Gross Margin of OC (29.94%) 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 | 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%
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.
Compared to 5 years ago, OC has less shares outstanding
The debt/assets ratio for OC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.79 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.79, OC is doing worse than 69.23% of the companies in the same industry.
OC has a debt to FCF ratio of 4.12. This is a neutral value as OC would need 4.12 years to pay back of all of its debts.
OC has a worse Debt to FCF ratio (4.12) than 61.54% of its industry peers.
OC has a Debt/Equity ratio of 0.89. This is a neutral value indicating 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.2
WACC9.9%
2.3 Liquidity
OC has a Current Ratio of 1.44. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting 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.
With a Quick ratio value of 0.85, OC is not doing good in the industry: 82.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.07%, which is quite good.
The Earnings Per Share has been growing by 24.02% on average over the past years. This is a very strong growth
Looking at the last year, OC shows a quite strong growth in Revenue. The Revenue has grown by 8.09% in the last year.
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
OC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.45% yearly.
Based on estimates for the next years, OC will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
EPS Next Y10.63%
EPS Next 2Y8.44%
EPS Next 3Y8.45%
EPS Next 5YN/A
Revenue Next Year14.03%
Revenue Next 2Y11.61%
Revenue Next 3Y9%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OC is valuated correctly with a Price/Earnings ratio of 12.26.
Based on the Price/Earnings ratio, OC is valued cheaper than 84.62% of the companies in the same industry.
OC is valuated cheaply when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.50, 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 23.40. OC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.5 |
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 a bit cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.53 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
OC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of OC may justify a higher PE ratio.
PEG (NY)1.15
PEG (5Y)0.51
EPS Next 2Y8.44%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, 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 0.94. OC pays more dividend than 87.18% of the companies in the same industry.
With a Dividend Yield of 1.23, OC pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
On average, the dividend of OC grows each year by 20.43%, 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)20.43%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
OC pays out 19.50% of its income as dividend. This is a sustainable payout ratio.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.5%
EPS Next 2Y8.44%
EPS Next 3Y8.45%
OWENS CORNING
NYSE:OC (11/15/2024, 8:04:00 PM)
After market: 193.99 0 (0%)193.99
-1.27 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.15
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 18.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.64% | ||
| PM (TTM) | 9.92% | ||
| GM | 29.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.07%
EPS 3Y41.36%
EPS 5Y
EPS Q2Q%
EPS Next Y10.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.09%
Revenue growth 3Y11.11%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y