O-I GLASS INC (OI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OI - US67098H1041 - Common Stock
15.52 USD
-0.1 (-0.64%)
15.52 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to OI. OI was compared to 22 industry peers in the Containers & Packaging industry. OI may be in some trouble as it scores bad on both profitability and health. OI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- OI had positive earnings in the past year.
- OI had a positive operating cash flow in the past year.
- In multiple years OI reported negative net income over the last 5 years.
- Each year in the past 5 years OI had a positive operating cash flow.
1.2 Ratios
- OI has a Return On Assets of -1.57%. This is in the lower half of the industry: OI underperforms 72.73% of its industry peers.
- The Return On Equity of OI (-10.93%) is worse than 81.82% of its industry peers.
- OI has a Return On Invested Capital (6.31%) which is in line with its industry peers.
- 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.
- OI's Operating Margin has declined in the last couple of years.
- The Gross Margin of OI (17.13%) is worse than 86.36% of its industry peers.
- OI's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OI is destroying value.
- The number of shares outstanding for OI remains at a similar level compared to 1 year ago.
- OI has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, OI has a worse debt to assets ratio.
2.2 Solvency
- OI has an Altman-Z score of 1.28. This is a bad value and indicates that OI is not financially healthy and even has some risk of bankruptcy.
- OI has a Altman-Z score of 1.28. This is amonst the worse of the industry: OI underperforms 81.82% 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.
- Looking at the Debt to FCF ratio, with a value of 74.14, OI is doing worse than 63.64% of the companies in the same industry.
- A Debt/Equity ratio of 3.83 is on the high side and indicates that OI has dependencies on debt financing.
- The Debt to Equity ratio of OI (3.83) is worse than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | 74.14 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.71
WACC8.85%
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 of 1.33. This is comparable to the rest of the industry: OI outperforms 50.00% of its industry peers.
- OI has a Quick Ratio of 1.33. This is a bad value and indicates that OI is not financially healthy enough and could expect problems in meeting 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.
- 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.
- Looking at the last year, OI shows a decrease in Revenue. The Revenue has decreased by -2.82% in the last year.
- 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
- 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.
- The Revenue is expected to grow by 1.40% on average over the next years.
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.
- 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
- Based on the Price/Earnings ratio of 11.41, the valuation of OI can be described as reasonable.
- 86.36% of the companies in the same industry are more expensive than OI, based on the Price/Earnings ratio.
- OI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 7.81, 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 25.98. OI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OI indicates a rather cheap valuation: OI is cheaper than 95.45% of the companies listed in the same industry.
- OI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.55 | ||
| EV/EBITDA | 6.43 |
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 44.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
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.