O-I GLASS INC (OI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OI - US67098H1041 - Common Stock
15.4 USD
+0.15 (+0.98%)
15.6215 USD
+0.22 (+1.44%)
Taking everything into account, OI scores 3 out of 10 in our fundamental rating. OI was compared to 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
- 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.
- In the past 5 years OI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of OI (-1.57%) is worse than 72.73% of its industry peers.
- OI has a Return On Equity of -10.93%. This is amonst the worse of the industry: OI underperforms 81.82% of its industry peers.
- OI's Return On Invested Capital of 6.31% is in line compared to the rest of the industry. OI outperforms 45.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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's Operating Margin of 9.16% is in line compared 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.
- OI has a worse Gross Margin (17.13%) 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OI 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.
- The debt/assets ratio for OI is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.28, we must say that OI is in the distress zone and 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.
- OI's Debt to FCF ratio of 74.14 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 3.83 is on the high side and indicates that OI has dependencies on debt financing.
- OI's Debt to Equity ratio of 3.83 is on the low side compared to the rest of the industry. OI is outperformed by 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
WACC8.83%
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.
- 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.
- 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
- The Earnings Per Share is expected to grow by 32.48% on average over the next years. This is a very strong growth
- 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-0.47%
Revenue Next 3Y0.19%
Revenue Next 5Y1.4%
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
- OI is valuated reasonably with a Price/Earnings ratio of 11.32.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, OI is valued rather cheaply.
- OI is valuated cheaply with a Price/Forward Earnings ratio of 7.75.
- 100.00% of the companies in the same industry are more expensive than OI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, OI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OI is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
- 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 | 34.28 | ||
| EV/EBITDA | 6.4 |
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
- OI does not give a dividend.
| 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.