OWENS CORNING (OC) Stock Fundamental Analysis
USA - NYSE:OC - US6907421019 - Common Stock
101.83 USD
-0.87 (-0.85%)
101.83 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to OC. OC was compared to 41 industry peers in the Building Products industry. There are concerns on the financial health of OC while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on OC.
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.
OC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OC has a Return On Assets of -3.57%. This is in the lower half of the industry: OC underperforms 73.17% of its industry peers.
With a Return On Equity value of -10.96%, OC is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 11.83%, OC is in the better half of the industry, outperforming 68.29% 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 12.50%.
| 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
OC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 16.48%, OC is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
In the last couple of years the Operating Margin of OC has grown nicely.
OC has a Gross Margin of 29.42%. This is comparable to the rest of the industry: OC outperforms 46.34% of its industry peers.
OC's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, OC has less shares outstanding
OC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 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 2.39, OC is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
OC has a debt to FCF ratio of 4.65. This is a neutral value as OC would need 4.65 years to pay back of all of its debts.
OC has a Debt to FCF ratio (4.65) which is in line with its industry peers.
OC has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external 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 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.29
WACC9.16%
2.3 Liquidity
A Current Ratio of 1.40 indicates that OC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, OC is doing worse than 75.61% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that OC may have some problems paying its short term obligations.
OC has a worse Quick ratio (0.86) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for OC have decreased strongly by -11.06% in the last year.
The Earnings Per Share has been growing by 27.98% on average over the past years. This is a very strong growth
OC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.47%.
The Revenue has been growing by 8.92% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 5.05% on average over the next years.
Based on estimates for the next years, OC will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-12.04%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
EPS Next 5Y5.05%
Revenue Next Year-4.65%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.15%
Revenue Next 5Y2.13%
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
Based on the Price/Earnings ratio of 7.24, the valuation of OC can be described as very cheap.
95.12% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, OC is valued rather cheaply.
OC is valuated cheaply with a Price/Forward Earnings ratio of 7.09.
OC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 95.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OC to the average of the S&P500 Index (34.59), we can say OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 7.09 |
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 97.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OC indicates a rather cheap valuation: OC is cheaper than 95.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| EV/EBITDA | 5.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, OC has a reasonable but not impressive dividend return.
In the last 3 months the price of OC has falen by -32.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.34, OC pays a better dividend. On top of this OC pays more dividend than 97.56% of the companies listed in the same industry.
OC's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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.
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of OC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-47.3%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
101.83
-0.87 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change2.62%
Ins Owners0.88%
Ins Owner Change1.17%
Market Cap8.52B
Revenue(TTM)10.80B
Net Income(TTM)-482.00M
Analysts79.29
Price Target171.82 (68.73%)
Short Float %2.65%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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)-4.68%
PT rev (3m)-2.06%
EPS NQ rev (1m)-34.6%
EPS NQ rev (3m)-39.74%
EPS NY rev (1m)-1.56%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-9.75%
Revenue NQ rev (3m)-10.31%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 7.09 | ||
| P/S | 0.79 | ||
| P/FCF | 7.69 | ||
| P/OCF | 4.55 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.37 |
EPS(TTM)14.07
EY13.82%
EPS(NY)14.36
Fwd EY14.1%
FCF(TTM)13.25
FCFY13.01%
OCF(TTM)22.38
OCFY21.98%
SpS129.15
BVpS52.6
TBVpS-2.86
PEG (NY)N/A
PEG (5Y)0.26
Graham Number129.04
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 | 2.39 |
F-Score4
WACC9.16%
ROIC/WACC1.29
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-12.04%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
EPS Next 5Y5.05%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
Revenue Next Year-4.65%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.15%
Revenue Next 5Y2.13%
EBIT growth 1Y-8.53%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year22.3%
EBIT Next 3Y9.17%
EBIT Next 5Y8.09%
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 5 / 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 -12.04% in the next year.