OWENS CORNING (OC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OC - US6907421019 - Common Stock
113.74 USD
+0.19 (+0.17%)
113.74 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. OC has a medium profitability rating, but doesn't score so well on its financial health evaluation. OC has a bad growth rate and is valued cheaply.
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 -3.57%, OC is doing worse than 73.81% of the companies in the same industry.
OC's Return On Equity of -10.96% is on the low side compared to the rest of the industry. OC is outperformed by 71.43% of its industry peers.
With a decent Return On Invested Capital value of 11.83%, OC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OC is in line with the industry average of 12.60%.
| 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.
With a decent Operating Margin value of 16.48%, OC is doing good in the industry, outperforming 64.29% of the companies in the same industry.
OC's Operating Margin has improved in the last couple of years.
OC has a Gross Margin (29.42%) which is in line with its industry peers.
In the last couple of years the Gross Margin of OC has grown nicely.
| 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
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.
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
OC has an Altman-Z score of 2.44. This is not the best score and indicates that OC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.44, OC is doing worse than 76.19% of the companies in the same industry.
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.
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 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.28
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.40 indicates that OC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, OC is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that OC may have some problems paying its short term obligations.
The Quick ratio of OC (0.86) is worse than 76.19% of its industry peers.
| 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%.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.98% yearly.
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
OC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.69% yearly.
The Revenue is expected to decrease by -0.69% on average over the next years.
EPS Next Y-20.58%
EPS Next 2Y-16.54%
EPS Next 3Y-5.62%
EPS Next 5Y-0.69%
Revenue Next Year-7.38%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.43%
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.
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
The Price/Earnings ratio is 8.08, 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 95.24% of the companies in the same industry.
OC is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.31 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 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
92.86% of the companies in the same industry are more expensive than OC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as OC's earnings are expected to decrease with -5.62% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-16.54%
EPS Next 3Y-5.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, OC has a reasonable but not impressive dividend return.
The stock price of OC dropped by -20.53% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
OC's Dividend Yield is rather good when compared to the industry average which is at 0.71. OC pays more dividend than 100.00% of the companies in the same industry.
OC's Dividend Yield is a higher than the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of OC is nicely growing with an annual growth rate of 22.67%!
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
OC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-47.3%
EPS Next 2Y-16.54%
EPS Next 3Y-5.62%
113.74
+0.19 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.76%
Inst Owner Change2.67%
Ins Owners0.9%
Ins Owner Change0.38%
Market Cap9.35B
Revenue(TTM)10.80B
Net Income(TTM)-482.00M
Analysts78.57
Price Target143.83 (26.46%)
Short Float %3.34%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP-47.3%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-3.93%
Max EPS beat(2)7.07%
EPS beat(4)3
Avg EPS beat(4)2.82%
Min EPS beat(4)-3.93%
Max EPS beat(4)7.62%
EPS beat(8)7
Avg EPS beat(8)5.34%
EPS beat(12)11
Avg EPS beat(12)8.21%
EPS beat(16)15
Avg EPS beat(16)8.98%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-1.85%
Revenue beat(12)1
Avg Revenue beat(12)-1.75%
Revenue beat(16)3
Avg Revenue beat(16)-1.44%
PT rev (1m)-16.29%
PT rev (3m)-20.06%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-49.55%
EPS NY rev (1m)-9.71%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-13.07%
Revenue NY rev (1m)-2.85%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.87 | ||
| P/FCF | 8.44 | ||
| P/OCF | 4.99 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.69 |
EPS(TTM)14.07
EY12.37%
EPS(NY)11.03
Fwd EY9.7%
FCF(TTM)13.48
FCFY11.85%
OCF(TTM)22.78
OCFY20.03%
SpS131.42
BVpS53.52
TBVpS-2.91
PEG (NY)N/A
PEG (5Y)0.29
Graham Number130.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -10.96% | ||
| ROCE | 16.41% | ||
| ROIC | 11.83% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 21.6% | ||
| OM | 16.48% | ||
| PM (TTM) | N/A | ||
| GM | 29.42% | ||
| FCFM | 10.26% |
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-Score4
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 108.06% | ||
| Cap/Sales | 7.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.44 |
F-Score4
WACC9.26%
ROIC/WACC1.28
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-20.58%
EPS Next 2Y-16.54%
EPS Next 3Y-5.62%
EPS Next 5Y-0.69%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
Revenue Next Year-7.38%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.43%
Revenue Next 5Y-0.69%
EBIT growth 1Y-8.53%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year13.3%
EBIT Next 3Y3.28%
EBIT Next 5Y2.49%
FCF growth 1Y-4.97%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y10.38%
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 3 / 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 -20.58% in the next year.