O-I GLASS INC (OI) Stock Fundamental Analysis
NYSE:OI - New York Stock Exchange, Inc. - US67098H1041 - Common Stock - Currency: USD
Overall OI gets a fundamental rating of 3 out of 10. We evaluated OI against 22 industry peers in the Containers & Packaging industry. Both the profitability and financial health of OI have multiple concerns. OI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
OI had positive earnings in the past year.
In the past year OI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OI reported negative net income in multiple years.
In the past 5 years OI always reported a positive cash flow from operatings.
1.2 Ratios
OI has a worse Return On Assets (-2.21%) than 86.36% of its industry peers.
Looking at the Return On Equity, with a value of -17.32%, OI is doing worse than 81.82% of the companies in the same industry.
OI has a Return On Invested Capital (5.63%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for OI is in line with the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.21% | ||
| ROE | -17.32% | ||
| ROIC | 5.63% |
ROA(3y)1.39%
ROA(5y)1.73%
ROE(3y)8.33%
ROE(5y)25.9%
ROIC(3y)7.46%
ROIC(5y)6.8%
1.3 Margins
OI's Operating Margin of 7.58% is in line compared to the rest of the industry. OI outperforms 40.91% of its industry peers.
In the last couple of years the Operating Margin of OI has declined.
OI has a worse Gross Margin (15.68%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of OI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | N/A | ||
| GM | 15.68% |
OM growth 3Y-4.51%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.66%
GM growth 5Y-2%
2. Health
2.1 Basic Checks
OI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for OI remains at a similar level compared to 1 year ago.
The number of shares outstanding for OI has been reduced compared to 5 years ago.
OI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that OI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, OI is doing worse than 72.73% of the companies in the same industry.
The Debt to FCF ratio of OI is 102.29, which is on the high side as it means it would take OI, 102.29 years of fcf income to pay off all of its debts.
OI's Debt to FCF ratio of 102.29 is on the low side compared to the rest of the industry. OI is outperformed by 63.64% of its industry peers.
A Debt/Equity ratio of 4.41 is on the high side and indicates that OI has dependencies on debt financing.
The Debt to Equity ratio of OI (4.41) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.41 | ||
| Debt/FCF | 102.29 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.7
WACC8.03%
2.3 Liquidity
OI has a Current Ratio of 1.24. This is a normal value and indicates that OI is financially healthy and should not expect problems in meeting its short term obligations.
OI has a Current ratio of 1.24. This is comparable to the rest of the industry: OI outperforms 40.91% of its industry peers.
A Quick Ratio of 0.73 indicates that OI may have some problems paying its short term obligations.
OI has a Quick ratio (0.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for OI have decreased strongly by -66.67% in the last year.
Measured over the past years, OI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.61% on average per year.
The Revenue has decreased by -5.29% in the past year.
OI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.48% yearly.
EPS 1Y (TTM)-66.67%
EPS 3Y-24.1%
EPS 5Y-18.61%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y0.9%
Revenue growth 5Y-0.48%
Sales Q2Q%-1.63%
3.2 Future
Based on estimates for the next years, OI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.32% on average per year.
OI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.29% yearly.
EPS Next Y76.36%
EPS Next 2Y53.35%
EPS Next 3Y42.42%
EPS Next 5Y32.32%
Revenue Next Year-2.02%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.49%
Revenue Next 5Y1.29%
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 accelerating.
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 20.55, OI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of OI is on the same level as its industry peers.
OI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 8.19, the valuation of OI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OI indicates a rather cheap valuation: OI is cheaper than 95.45% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. OI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
OI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OI is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.65 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
OI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OI's earnings are expected to grow with 42.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y53.35%
EPS Next 3Y42.42%
5. Dividend
5.1 Amount
No dividends for OI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.41
-0.12 (-0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change0%
Ins Owners1.28%
Ins Owner Change11.72%
Market Cap2.38B
Analysts80
Price Target15.94 (3.44%)
Short Float %4.11%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.94%
Min EPS beat(2)33.39%
Max EPS beat(2)64.48%
EPS beat(4)2
Avg EPS beat(4)-25.95%
Min EPS beat(4)-200.22%
Max EPS beat(4)64.48%
EPS beat(8)6
Avg EPS beat(8)24.66%
EPS beat(12)10
Avg EPS beat(12)22.66%
EPS beat(16)14
Avg EPS beat(16)20.98%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-6.94%
Max Revenue beat(2)-2.55%
Revenue beat(4)0
Avg Revenue beat(4)-5.6%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-2.55%
Revenue beat(8)0
Avg Revenue beat(8)-4.74%
Revenue beat(12)2
Avg Revenue beat(12)-3.07%
Revenue beat(16)5
Avg Revenue beat(16)-1.85%
PT rev (1m)4.17%
PT rev (3m)4.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)2.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 8.19 | ||
| P/S | 0.37 | ||
| P/FCF | 48.65 | ||
| P/OCF | 4.05 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.07 |
EPS(TTM)0.75
EY4.87%
EPS(NY)1.88
Fwd EY12.21%
FCF(TTM)0.32
FCFY2.06%
OCF(TTM)3.8
OCFY24.67%
SpS42.05
BVpS7.2
TBVpS-2.87
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.21% | ||
| ROE | -17.32% | ||
| ROCE | 7.25% | ||
| ROIC | 5.63% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 7.89% | ||
| OM | 7.58% | ||
| PM (TTM) | N/A | ||
| GM | 15.68% | ||
| FCFM | 0.75% |
ROA(3y)1.39%
ROA(5y)1.73%
ROE(3y)8.33%
ROE(5y)25.9%
ROIC(3y)7.46%
ROIC(5y)6.8%
ROICexc(3y)8.45%
ROICexc(5y)7.63%
ROICexgc(3y)12.05%
ROICexgc(5y)11.18%
ROCE(3y)9.56%
ROCE(5y)8.69%
ROICexcg growth 3Y-5.11%
ROICexcg growth 5Y-3.18%
ROICexc growth 3Y-1.37%
ROICexc growth 5Y-1.27%
OM growth 3Y-4.51%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.66%
GM growth 5Y-2%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.41 | ||
| Debt/FCF | 102.29 | ||
| Debt/EBITDA | 5.05 | ||
| Cap/Depr | 112.53% | ||
| Cap/Sales | 8.29% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 60.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.29 |
F-Score6
WACC8.03%
ROIC/WACC0.7
Cap/Depr(3y)129.37%
Cap/Depr(5y)108.64%
Cap/Sales(3y)9%
Cap/Sales(5y)7.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.67%
EPS 3Y-24.1%
EPS 5Y-18.61%
EPS Q2Q%-11.11%
EPS Next Y76.36%
EPS Next 2Y53.35%
EPS Next 3Y42.42%
EPS Next 5Y32.32%
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y0.9%
Revenue growth 5Y-0.48%
Sales Q2Q%-1.63%
Revenue Next Year-2.02%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.49%
Revenue Next 5Y1.29%
EBIT growth 1Y-30.86%
EBIT growth 3Y-3.65%
EBIT growth 5Y-5.06%
EBIT Next Year102.1%
EBIT Next 3Y32.61%
EBIT Next 5Y18.05%
FCF growth 1Y109.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1629.41%
OCF growth 3Y-10.58%
OCF growth 5Y3.84%