O-I GLASS INC (OI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OI - US67098H1041 - Common Stock
15.14 USD
+0.11 (+0.73%)
Overall OI gets a fundamental rating of 3 out of 10. We evaluated OI against 22 industry peers in the Containers & Packaging industry. OI has a bad profitability rating. Also its financial health evaluation is rather negative. OI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year OI was profitable.
- OI had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: OI reported negative net income in multiple years.
- Each year in the past 5 years OI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -1.57%, OI is doing worse than 72.73% of the companies in the same industry.
- With a Return On Equity value of -10.93%, OI is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 6.31%, OI perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- OI had an Average Return On Invested Capital over the past 3 years of 7.46%. This is in line with the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.57% | ||
| ROE | -10.93% | ||
| ROIC | 6.31% |
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
- With a Operating Margin value of 9.16%, OI perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- In the last couple of years the Operating Margin of OI has declined.
- OI has a Gross Margin of 17.13%. This is amonst the worse of the industry: OI underperforms 86.36% of its industry peers.
- In the last couple of years the Gross Margin of OI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.16% | ||
| PM (TTM) | N/A | ||
| GM | 17.13% |
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.
- Compared to 1 year ago, OI has about the same amount of shares outstanding.
- 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
- OI has an Altman-Z score of 1.27. This is a bad value and indicates that OI is not financially healthy and even has some risk of bankruptcy.
- OI's Altman-Z score of 1.27 is on the low side compared to the rest of the industry. OI is outperformed by 86.36% of its industry peers.
- The Debt to FCF ratio of OI is 74.14, which is on the high side as it means it would take OI, 74.14 years of fcf income to pay off all of its debts.
- OI has a worse Debt to FCF ratio (74.14) than 63.64% of its industry peers.
- A Debt/Equity ratio of 3.83 is on the high side and indicates that OI has dependencies on debt financing.
- OI has a worse Debt to Equity ratio (3.83) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | 74.14 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.72
WACC8.77%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that OI should not have too much problems paying its short term obligations.
- OI has a Current ratio (1.33) which is comparable to the rest of the industry.
- A Quick Ratio of 0.84 indicates that OI may have some problems paying its short term obligations.
- OI's Quick ratio of 0.84 is on the low side compared to the rest of the industry. OI is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 40.21% over the past 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.
- OI shows a decrease in Revenue. In the last year, the revenue decreased by -2.82%.
- Measured over the past years, OI shows a decrease in Revenue. The Revenue has been decreasing by -0.48% on average per year.
EPS 1Y (TTM)40.21%
EPS 3Y-24.1%
EPS 5Y-18.61%
EPS Q2Q%1300%
Revenue 1Y (TTM)-2.82%
Revenue growth 3Y0.9%
Revenue growth 5Y-0.48%
Sales Q2Q%-1.55%
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 32.48% on average per year.
- OI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.40% yearly.
EPS Next Y106.76%
EPS Next 2Y57.61%
EPS Next 3Y44.64%
EPS Next 5Y32.48%
Revenue Next Year-2.5%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.13%
Revenue Next 5Y1.4%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 11.13 indicates a reasonable valuation of OI.
- OI's Price/Earnings ratio is rather cheap when compared to the industry. OI is cheaper than 86.36% of the companies in the same industry.
- OI is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.62, the valuation of OI can be described as very cheap.
- OI's Price/Forward Earnings ratio is rather cheap when compared to the industry. OI is cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. OI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
- OI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OI is cheaper than 95.45% of the companies in the same industry.
- OI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.7 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as OI's earnings are expected to grow with 44.64% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y57.61%
EPS Next 3Y44.64%
5. Dividend
5.1 Amount
- No dividends for OI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
O-I GLASS INC / OI FAQ
What is the ChartMill fundamental rating of O-I GLASS INC (OI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to OI.
What is the valuation status for OI stock?
ChartMill assigns a valuation rating of 8 / 10 to O-I GLASS INC (OI). This can be considered as Undervalued.
Can you provide the profitability details for O-I GLASS INC?
O-I GLASS INC (OI) has a profitability rating of 2 / 10.
How financially healthy is O-I GLASS INC?
The financial health rating of O-I GLASS INC (OI) is 1 / 10.
What is the earnings growth outlook for O-I GLASS INC?
The Earnings per Share (EPS) of O-I GLASS INC (OI) is expected to grow by 106.76% in the next year.