O-I GLASS INC (OI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OI - US67098H1041 - Common Stock
15.03 USD
-0.18 (-1.18%)
15.03 USD
0 (0%)
OI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. OI has a bad profitability rating. Also its financial health evaluation is rather negative. OI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year OI was profitable.
- 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.
- OI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -1.57%, OI is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- 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.
- Looking at the Return On Invested Capital, with a value of 6.31%, OI is in line with its industry, outperforming 45.45% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for OI 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
- OI has a Operating Margin of 9.16%. This is comparable to the rest of the industry: OI outperforms 54.55% of its industry peers.
- In the last couple of years the Operating Margin of OI has declined.
- With a Gross Margin value of 17.13%, OI is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OI 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.
- With a Altman-Z score value of 1.27, OI is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
- OI has a debt to FCF ratio of 74.14. This is a negative value and a sign of low solvency as OI would need 74.14 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 74.14, OI is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- OI has a Debt/Equity ratio of 3.83. This is a high value indicating a heavy dependency on external 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.
- The Current ratio of OI (1.33) 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.
- With a Quick ratio value of 0.84, OI is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- OI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.21%, which is quite impressive.
- OI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.61% yearly.
- OI shows a decrease in Revenue. In the last year, the revenue decreased by -2.82%.
- The Revenue has been decreasing by -0.48% on average over the past years.
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
- OI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.48% yearly.
- 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 11.05 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 7.56, 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.
- OI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
- 95.45% of the companies in the same industry are more expensive than OI, based on the Enterprise Value to EBITDA ratio.
- 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 | 33.46 | ||
| EV/EBITDA | 6.38 |
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.
- OI's earnings are expected to grow with 44.64% in the coming years. This may justify a more expensive valuation.
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.