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Don't overlook NYSE:OC—it's a hidden gem with strong fundamentals and an attractive price tag.

By Mill Chart

Last update: Oct 25, 2023

Our stock screener has singled out OWENS CORNING (NYSE:OC) as a stellar value proposition. NYSE:OC not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

How do we evaluate the Valuation for NYSE:OC?

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:OC boasts a 8 out of 10:

  • Based on the Price/Earnings ratio of 9.45, the valuation of OC can be described as reasonable.
  • 83.72% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of OC to the average of the S&P500 Index (25.14), we can say OC is valued rather cheaply.
  • OC is valuated reasonably with a Price/Forward Earnings ratio of 8.60.
  • Based on the Price/Forward Earnings ratio, OC is valued cheaper than 88.37% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 18.62, OC is valued rather cheaply.
  • OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 86.05% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, OC is valued a bit cheaper than 67.44% of the companies in the same industry.
  • OC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • OC has a very decent profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NYSE:OC

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:OC, the assigned 7 is noteworthy for profitability:

  • The Return On Assets of OC (12.02%) is better than 74.42% of its industry peers.
  • Looking at the Return On Equity, with a value of 26.37%, OC is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
  • OC has a Return On Invested Capital of 13.23%. This is in the better half of the industry: OC outperforms 67.44% of its industry peers.
  • The 3 year average ROIC (12.19%) for OC is below the current ROIC(13.23%), indicating increased profibility in the last year.
  • Looking at the Profit Margin, with a value of 13.62%, OC belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
  • OC's Profit Margin has improved in the last couple of years.
  • OC has a better Operating Margin (16.38%) than 74.42% of its industry peers.
  • OC's Operating Margin has improved in the last couple of years.
  • In the last couple of years the Gross Margin of OC has grown nicely.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:OC, the assigned 6 for health provides valuable insights:

  • OC has an Altman-Z score of 3.25. This indicates that OC is financially healthy and has little risk of bankruptcy at the moment.
  • The Debt to FCF ratio of OC is 3.16, which is a good value as it means it would take OC, 3.16 years of fcf income to pay off all of its debts.
  • OC has a better Debt to FCF ratio (3.16) than 62.79% of its industry peers.
  • A Current Ratio of 2.07 indicates that OC has no problem at all paying its short term obligations.

Evaluating Growth: NYSE:OC

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:OC has received a 5 out of 10:

  • OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.57%, which is quite good.
  • OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.62% yearly.
  • Measured over the past years, OC shows a quite strong growth in Revenue. The Revenue has been growing by 8.86% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of OC contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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OWENS CORNING

NYSE:OC (2/26/2024, 7:04:00 PM)

After market: 147.36 +0.06 (+0.04%)

147.3

-0.07 (-0.05%)

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