OWENS CORNING (OC)
US6907421019 - Common Stock
We assign a fundamental rating of 5 out of 10 to OC. OC was compared to 40 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 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.
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 7.02%, OC is in line with its industry, outperforming 45.00% of the companies in the same industry.
OC's Return On Equity of 19.23% is in line compared to the rest of the industry. OC outperforms 60.00% of its industry peers.
OC has a Return On Invested Capital (11.50%) which is in line with 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 13.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 19.23% | ||
| ROIC | 11.5% |
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 (10.66%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OC has grown nicely.
With a decent Operating Margin value of 19.08%, OC is doing good in the industry, outperforming 72.50% of the companies in the same industry.
In the last couple of years the Operating Margin of OC has grown nicely.
OC's Gross Margin of 30.11% is in line compared to the rest of the industry. OC outperforms 42.50% of its industry peers.
OC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 10.66% | ||
| GM | 30.11% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OC is still creating some value.
OC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OC has less shares outstanding
Compared to 1 year ago, OC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of OC (2.59) is worse than 75.00% of its industry peers.
The Debt to FCF ratio of OC is 4.15, which is a neutral value as it means it would take OC, 4.15 years of fcf income to pay off all of its debts.
OC's Debt to FCF ratio of 4.15 is on the low side compared to the rest of the industry. OC is outperformed by 62.50% of its industry peers.
OC has a Debt/Equity ratio of 0.95. This is a neutral value indicating OC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, OC is doing worse than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.2
WACC9.6%
2.3 Liquidity
OC has a Current Ratio of 1.37. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
OC has a worse Current ratio (1.37) than 82.50% of its industry peers.
A Quick Ratio of 0.79 indicates that OC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, OC is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.46%, which is quite good.
Measured over the past years, OC shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.02% on average per year.
OC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.69%.
The Revenue has been growing slightly by 6.52% on average over the past years.
EPS 1Y (TTM)19.46%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%9.95%
Revenue 1Y (TTM)1.69%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%8.82%
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 9.38% yearly.
OC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.05% yearly.
EPS Next Y10.55%
EPS Next 2Y8.52%
EPS Next 3Y9.38%
EPS Next 5YN/A
Revenue Next Year14.15%
Revenue Next 2Y12.19%
Revenue Next 3Y10.05%
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
With a Price/Earnings ratio of 11.03, the valuation of OC can be described as very reasonable.
87.50% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.94. OC is valued rather cheaply when compared to this.
OC is valuated reasonably with a Price/Forward Earnings ratio of 10.18.
OC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 90.00% of the companies in the same industry.
OC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.18 |
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 87.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.07 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.05
PEG (5Y)0.46
EPS Next 2Y8.52%
EPS Next 3Y9.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, 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 90.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.20, OC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 Years5
Div Non Decr Years5
5.3 Sustainability
18.73% 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.
DP18.73%
EPS Next 2Y8.52%
EPS Next 3Y9.38%
OWENS CORNING
NYSE:OC (10/4/2024, 7:00:00 PM)
After market: 172.01 0 (0%)172.01
-0.44 (-0.26%)
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 Cap14.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 | 11.03 | ||
| Fwd PE | 10.18 | ||
| 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)1.05
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.02% | ||
| ROE | 19.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.08% | ||
| PM (TTM) | 10.66% | ||
| GM | 30.11% | ||
| 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.79 | ||
| 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)19.46%
EPS 3Y41.36%
EPS 5Y
EPS Q2Q%
EPS Next Y10.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.69%
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