OWENS CORNING (OC)

US6907421019 - Common Stock

164.44  +4.33 (+2.7%)

After market: 164.4 -0.04 (-0.02%)

Fundamental Rating

6

Taking everything into account, OC scores 6 out of 10 in our fundamental rating. OC was compared to 43 industry peers in the Building Products industry. OC scores excellent on profitability, but there are some minor concerns on its financial health. OC has a decent growth rate and is not valued too expensively.



7

1. Profitability

1.1 Basic Checks

In the past year OC was profitable.
In the past year OC had a positive cash flow from operations.
Of the past 5 years OC 4 years were profitable.
OC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.64%, OC is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
OC has a better Return On Equity (23.15%) than 69.77% of its industry peers.
The Return On Invested Capital of OC (15.25%) is better than 69.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OC is in line with the industry average of 14.12%.
The 3 year average ROIC (14.40%) for OC is below the current ROIC(15.25%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.64%
ROE 23.15%
ROIC 15.25%
ROA(3y)10.71%
ROA(5y)6.43%
ROE(3y)24.48%
ROE(5y)14.47%
ROIC(3y)14.4%
ROIC(5y)11.68%

1.3 Margins

OC has a better Profit Margin (12.36%) than 74.42% of its industry peers.
In the last couple of years the Profit Margin of OC has grown nicely.
OC has a Operating Margin of 18.52%. This is in the better half of the industry: OC outperforms 74.42% of its industry peers.
In the last couple of years the Operating Margin of OC has grown nicely.
OC has a Gross Margin (28.78%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OC has grown nicely.
Industry RankSector Rank
OM 18.52%
PM (TTM) 12.36%
GM 28.78%
OM growth 3Y13.65%
OM growth 5Y10.53%
PM growth 3YN/A
PM growth 5Y9.86%
GM growth 3Y7.46%
GM growth 5Y4.23%

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OC is creating some value.
OC has less shares outstanding than it did 1 year ago.
OC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OC has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.53 indicates that OC is not in any danger for bankruptcy at the moment.
OC's Altman-Z score of 3.53 is in line compared to the rest of the industry. OC outperforms 48.84% of its industry peers.
OC has a debt to FCF ratio of 2.55. This is a good value and a sign of high solvency as OC would need 2.55 years to pay back of all of its debts.
OC has a Debt to FCF ratio (2.55) which is in line with its industry peers.
A Debt/Equity ratio of 0.51 indicates that OC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, OC is in line with its industry, outperforming 48.84% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF 2.55
Altman-Z 3.53
ROIC/WACC1.33
WACC11.45%

2.3 Liquidity

OC has a Current Ratio of 1.69. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of OC (1.69) is worse than 69.77% of its industry peers.
A Quick Ratio of 1.17 indicates that OC should not have too much problems paying its short term obligations.
OC's Quick ratio of 1.17 is on the low side compared to the rest of the industry. OC is outperformed by 65.12% of its industry peers.
Industry RankSector Rank
Current Ratio 1.69
Quick Ratio 1.17

4

3. Growth

3.1 Past

OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.73%, which is quite good.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.02% yearly.
Looking at the last year, OC shows a decrease in Revenue. The Revenue has decreased by -0.86% in the last year.
Measured over the past years, OC shows a small growth in Revenue. The Revenue has been growing by 6.52% on average per year.
EPS 1Y (TTM)12.73%
EPS 3Y41.36%
EPS 5Y24.02%
EPS growth Q2Q28.92%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Revenue growth Q2Q0.83%

3.2 Future

OC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.12% yearly.
Based on estimates for the next years, OC will show a small growth in Revenue. The Revenue will grow by 4.25% on average per year.
EPS Next Y0.69%
EPS Next 2Y3.61%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year-0.38%
Revenue Next 2Y1.71%
Revenue Next 3Y4.25%
Revenue Next 5YN/A

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.46 indicates a reasonable valuation of OC.
Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 93.02% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.95. OC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.38 indicates a reasonable valuation of OC.
Based on the Price/Forward Earnings ratio, OC is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, OC is valued a bit cheaper.
Industry RankSector Rank
PE 11.46
Fwd PE 11.38

4.2 Price Multiples

97.67% of the companies in the same industry are more expensive than OC, based on the Enterprise Value to EBITDA ratio.
62.79% of the companies in the same industry are more expensive than OC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.99
EV/EBITDA 6.4

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)16.67
PEG (5Y)0.48
EPS Next 2Y3.61%
EPS Next 3Y5.12%

6

5. Dividend

5.1 Amount

OC has a Yearly Dividend Yield of 1.50%.
OC's Dividend Yield is rather good when compared to the industry average which is at 1.31. OC pays more dividend than 88.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, OC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.5%

5.2 History

The dividend of OC is nicely growing with an annual growth rate of 20.43%!
OC has been paying a dividend for at least 10 years, so it has a reliable track record.
OC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)20.43%
Div Incr Years5
Div Non Decr Years5

5.3 Sustainability

OC pays out 15.72% of its income as dividend. This is a sustainable payout ratio.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.72%
EPS Next 2Y3.61%
EPS Next 3Y5.12%

OWENS CORNING

NYSE:OC (4/22/2024, 7:19:09 PM)

After market: 164.4 -0.04 (-0.02%)

164.44

+4.33 (+2.7%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.30B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.5%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 11.46
Fwd PE 11.38
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.67
PEG (5Y)0.48
Profitability
Industry RankSector Rank
ROA 10.64%
ROE 23.15%
ROCE
ROIC
ROICexc
ROICexgc
OM 18.52%
PM (TTM) 12.36%
GM 28.78%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.69
Quick Ratio 1.17
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.73%
EPS 3Y41.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y11.11%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y