OWENS CORNING (OC) Stock Fundamental Analysis
NYSE:OC - New York Stock Exchange, Inc. - US6907421019 - Common Stock
OC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. 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.
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 6.88%. This is comparable to the rest of the industry: OC outperforms 47.50% of its industry peers.
Looking at the Return On Equity, with a value of 18.42%, OC is in line with its industry, outperforming 60.00% of the companies in the same industry.
OC has a Return On Invested Capital of 11.93%. This is comparable to the rest of the industry: OC outperforms 55.00% of 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 13.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 18.42% | ||
| ROIC | 11.93% |
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
With a Profit Margin value of 9.92%, OC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of OC has grown nicely.
OC has a Operating Margin of 18.64%. This is in the better half of the industry: OC outperforms 67.50% of its industry peers.
In the last couple of years the Operating Margin of OC has grown nicely.
With a Gross Margin value of 29.94%, OC perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
In the last couple of years the Gross Margin of OC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.64% | ||
| PM (TTM) | 9.92% | ||
| GM | 29.94% |
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
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.
The number of shares outstanding for OC has been reduced compared to 5 years ago.
The debt/assets ratio for OC has been reduced compared to a year ago.
2.2 Solvency
OC has an Altman-Z score of 2.75. 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 2.75, OC is doing worse than 72.50% of the companies in the same industry.
OC has a debt to FCF ratio of 4.12. This is a neutral value as OC would need 4.12 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.12, OC perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that OC is somewhat dependend on debt financing.
OC has a worse Debt to Equity ratio (0.89) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.16
WACC10.29%
2.3 Liquidity
OC has a Current Ratio of 1.44. 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 (1.44) than 77.50% of its industry peers.
A Quick Ratio of 0.85 indicates that OC may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, OC is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.07% over the past year.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.02% yearly.
OC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.09%.
The Revenue has been growing slightly by 6.52% on average over the past years.
EPS 1Y (TTM)16.07%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%5.54%
Revenue 1Y (TTM)8.09%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%22.87%
3.2 Future
The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
OC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.18% yearly.
EPS Next Y11.24%
EPS Next 2Y8.55%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue Next Year13.83%
Revenue Next 2Y11.29%
Revenue Next 3Y8.18%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.84, the valuation of OC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 82.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OC to the average of the S&P500 Index (28.29), we can say OC is valued rather cheaply.
The Price/Forward Earnings ratio is 11.08, which indicates a very decent 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 85.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than OC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OC indicates a rather cheap valuation: OC is cheaper than 85.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
OC's 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)0.49
EPS Next 2Y8.55%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, OC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.05, OC pays a better dividend. On top of this OC pays more dividend than 92.50% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, OC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of OC is nicely growing with an annual growth rate of 20.43%!
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)20.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
OC pays out 19.50% of its income as dividend. This is a sustainable payout ratio.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.5%
EPS Next 2Y8.55%
EPS Next 3Y8.18%
OWENS CORNING
NYSE:OC (1/21/2025, 8:18:14 PM)
After market: 187.27 0 (0%)187.27
+4.59 (+2.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change0.06%
Ins Owners0.88%
Ins Owner Change-0.82%
Market Cap16.06B
Analysts79.23
Price Target213.84 (14.19%)
Short Float %0.93%
Short Ratio0.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend2.1
Dividend Growth(5Y)20.43%
DP19.5%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.53%
Min EPS beat(2)4.15%
Max EPS beat(2)4.92%
EPS beat(4)4
Avg EPS beat(4)7.85%
Min EPS beat(4)4.15%
Max EPS beat(4)13.2%
EPS beat(8)8
Avg EPS beat(8)10.91%
EPS beat(12)12
Avg EPS beat(12)11.03%
EPS beat(16)15
Avg EPS beat(16)12.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-1.9%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)3.45%
PT rev (3m)10.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.6%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.08 | ||
| P/S | 1.54 | ||
| P/FCF | 12.1 | ||
| P/OCF | 8.39 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.11 |
EPS(TTM)15.82
EY8.45%
EPS(NY)16.91
Fwd EY9.03%
FCF(TTM)15.48
FCFY8.27%
OCF(TTM)22.31
OCFY11.91%
SpS121.7
BVpS65.55
TBVpS-0.17
PEG (NY)1.05
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 18.42% | ||
| ROCE | 15.73% | ||
| ROIC | 11.93% | ||
| ROICexc | 12.43% | ||
| ROICexgc | 23.67% | ||
| OM | 18.64% | ||
| PM (TTM) | 9.92% | ||
| GM | 29.94% | ||
| FCFM | 12.72% |
ROA(3y)10.71%
ROA(5y)6.43%
ROE(3y)24.48%
ROE(5y)14.47%
ROIC(3y)14.4%
ROIC(5y)11.68%
ROICexc(3y)16.82%
ROICexc(5y)13.32%
ROICexgc(3y)27.37%
ROICexgc(5y)21.75%
ROCE(3y)18.99%
ROCE(5y)15.4%
ROICexcg growth 3Y29%
ROICexcg growth 5Y19.36%
ROICexc growth 3Y26.42%
ROICexc growth 5Y21.14%
OM growth 3Y13.65%
OM growth 5Y10.53%
PM growth 3YN/A
PM growth 5Y9.86%
GM growth 3Y7.46%
GM growth 5Y4.23%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 4.12 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 90.71% | ||
| Cap/Sales | 5.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.84% | ||
| Profit Quality | 128.19% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.75 |
F-Score5
WACC10.29%
ROIC/WACC1.16
Cap/Depr(3y)84.41%
Cap/Depr(5y)82.66%
Cap/Sales(3y)4.97%
Cap/Sales(5y)5.1%
Profit Quality(3y)104.96%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.07%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%5.54%
EPS Next Y11.24%
EPS Next 2Y8.55%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue 1Y (TTM)8.09%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%22.87%
Revenue Next Year13.83%
Revenue Next 2Y11.29%
Revenue Next 3Y8.18%
Revenue Next 5YN/A
EBIT growth 1Y21.55%
EBIT growth 3Y26.27%
EBIT growth 5Y17.74%
EBIT Next Year50.41%
EBIT Next 3Y17.77%
EBIT Next 5YN/A
FCF growth 1Y41.13%
FCF growth 3Y12.95%
FCF growth 5Y35.01%
OCF growth 1Y34.79%
OCF growth 3Y14.84%
OCF growth 5Y16.44%