OWENS CORNING (OC) Stock Fundamental Analysis
USA - NYSE:OC - US6907421019 - Common Stock
147.59 USD
+1.52 (+1.04%)
147.7 USD
+0.11 (+0.07%)
Overall OC gets a fundamental rating of 4 out of 10. We evaluated OC 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
OC had positive earnings in the past year.
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
OC's Return On Assets of 2.30% 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 worse Return On Equity (6.45%) than 68.29% of its industry peers.
With a decent Return On Invested Capital value of 10.94%, OC is doing good in 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 12.76%.
| 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 worse Profit Margin (2.98%) than 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 better Operating Margin (16.69%) than 63.41% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
OC has a Gross Margin (29.56%) 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 | 16.69% | ||
| 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
OC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
OC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for OC has been reduced compared to 5 years ago.
The debt/assets ratio for OC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.62 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
OC's Altman-Z score of 2.62 is on the low side compared to the rest of the industry. OC is outperformed by 70.73% of its industry peers.
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: 63.41% of the companies in the same industry are doing better.
OC has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
OC has a worse Debt to Equity ratio (1.07) than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.11
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.52 indicates that OC should not have too much problems paying its short term obligations.
OC has a Current ratio of 1.52. This is in the lower half of the industry: OC underperforms 70.73% 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 worse Quick ratio (0.95) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
OC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.20%.
Measured over the past years, OC shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.98% on average per year.
OC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.08%.
OC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.92% yearly.
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
The Earnings Per Share is expected to grow by 5.17% 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 2.19% on average per year.
EPS Next Y-10.65%
EPS Next 2Y-3.12%
EPS Next 3Y2.06%
EPS Next 5Y5.17%
Revenue Next Year-4.12%
Revenue Next 2Y-1.53%
Revenue Next 3Y0.21%
Revenue Next 5Y2.19%
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
Based on the Price/Earnings ratio of 9.99, the valuation of OC can be described as reasonable.
Based on the Price/Earnings ratio, OC is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
OC is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.93, which indicates a very decent valuation of OC.
OC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 97.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 97.56% 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 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.5 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-3.12%
EPS Next 3Y2.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, OC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.13, OC pays a better dividend. On top of this OC pays more dividend than 92.68% of the companies listed in the same industry.
OC's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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 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-3.12%
EPS Next 3Y2.06%
147.59
+1.52 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners94.2%
Inst Owner Change-3.12%
Ins Owners0.84%
Ins Owner Change0.33%
Market Cap12.34B
Analysts80
Price Target179.92 (21.91%)
Short Float %2.01%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)2.56%
PT rev (3m)3.18%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-15.39%
EPS NY rev (1m)1.85%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.11 | ||
| P/FCF | 13.5 | ||
| P/OCF | 7.47 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.7 |
EPS(TTM)14.78
EY10.01%
EPS(NY)14.86
Fwd EY10.07%
FCF(TTM)10.93
FCFY7.41%
OCF(TTM)19.77
OCFY13.39%
SpS133.48
BVpS61.74
TBVpS-3.77
PEG (NY)N/A
PEG (5Y)0.36
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%
ROICexcg growth 3Y2.09%
ROICexcg 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 | 2.62 |
F-Score6
WACC9.86%
ROIC/WACC1.11
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-10.65%
EPS Next 2Y-3.12%
EPS Next 3Y2.06%
EPS Next 5Y5.17%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-1.51%
Revenue Next Year-4.12%
Revenue Next 2Y-1.53%
Revenue Next 3Y0.21%
Revenue Next 5Y2.19%
EBIT growth 1Y-1.11%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year21.34%
EBIT Next 3Y9.78%
EBIT Next 5Y8.11%
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%