OWENS CORNING (OC) Stock Fundamental Analysis
USA - NYSE:OC - US6907421019 - Common Stock
127.74 USD
-0.89 (-0.69%)
127.74 USD
0 (0%)
OC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
OC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years OC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.30%, OC is doing worse than 73.17% of the companies in the same industry.
OC has a Return On Equity of 6.45%. This is in the lower half of the industry: OC underperforms 68.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.94%, OC is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OC is in line with the industry average of 12.64%.
| 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 70.73% of its industry peers.
In the last couple of years the Profit Margin of OC has remained more or less at the same level.
OC has a Operating Margin of 16.69%. This is in the better half of the industry: OC outperforms 63.41% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
OC's Gross Margin of 29.56% 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 | 16.69% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OC is creating some value.
OC has less shares outstanding than it did 1 year ago.
OC has less shares outstanding than it did 5 years ago.
OC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.51 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 2.51, OC is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
OC has a debt to FCF ratio of 6.06. This is a slightly negative value and a sign of low solvency as OC would need 6.06 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.06, OC is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.07 is on the high side and indicates that OC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.07, OC is doing worse than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.17
WACC9.35%
2.3 Liquidity
OC has a Current Ratio of 1.52. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
OC's Current ratio of 1.52 is on the low side compared to the rest of the industry. OC is outperformed by 73.17% 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 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for OC have decreased by -5.20% in the last year.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.98% yearly.
OC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.08%.
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)-5.2%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-9.27%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-1.51%
3.2 Future
OC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.96% yearly.
The Revenue is expected to grow by 2.12% on average over the next years.
EPS Next Y-11.45%
EPS Next 2Y-4.18%
EPS Next 3Y1.36%
EPS Next 5Y4.96%
Revenue Next Year-4.44%
Revenue Next 2Y-1.97%
Revenue Next 3Y0.04%
Revenue Next 5Y2.12%
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
A Price/Earnings ratio of 8.64 indicates a reasonable valuation of OC.
Based on the Price/Earnings ratio, OC is valued cheaper than 97.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of OC to the average of the S&P500 Index (26.89), we can say OC is valued rather cheaply.
OC is valuated reasonably with a Price/Forward Earnings ratio of 8.79.
Based on the Price/Forward Earnings ratio, OC is valued cheaper than 97.56% of the companies in the same industry.
OC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 100.00% of the companies in the same industry.
OC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OC is cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.69 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-4.18%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.15%.
OC's Dividend Yield is rather good when compared to the industry average which is at 1.24. OC pays more dividend than 97.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, OC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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
OC pays out 66.67% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP66.67%
EPS Next 2Y-4.18%
EPS Next 3Y1.36%
127.74
-0.89 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change1.22%
Ins Owners0.88%
Ins Owner Change0.29%
Market Cap10.68B
Revenue(TTM)11.16B
Net Income(TTM)333.00M
Analysts80
Price Target180.26 (41.11%)
Short Float %2.46%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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)0.19%
PT rev (3m)2.75%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.79 | ||
| P/S | 0.96 | ||
| P/FCF | 11.69 | ||
| P/OCF | 6.46 | ||
| P/B | 2.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.05 |
EPS(TTM)14.78
EY11.57%
EPS(NY)14.53
Fwd EY11.38%
FCF(TTM)10.93
FCFY8.56%
OCF(TTM)19.77
OCFY15.47%
SpS133.48
BVpS61.74
TBVpS-3.77
PEG (NY)N/A
PEG (5Y)0.31
Graham Number143.28
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 | 2.51 |
F-Score6
WACC9.35%
ROIC/WACC1.17
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)-5.2%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-9.27%
EPS Next Y-11.45%
EPS Next 2Y-4.18%
EPS Next 3Y1.36%
EPS Next 5Y4.96%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-1.51%
Revenue Next Year-4.44%
Revenue Next 2Y-1.97%
Revenue Next 3Y0.04%
Revenue Next 5Y2.12%
EBIT growth 1Y-1.11%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year22.3%
EBIT Next 3Y9.17%
EBIT Next 5Y8.03%
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 -11.45% in the next year.