OWENS CORNING (OC) Stock Fundamental Analysis
USA - NYSE:OC - US6907421019 - Common Stock
127.28 USD
-0.98 (-0.76%)
127.28 USD
0 (0%)
Overall OC gets a fundamental rating of 4 out of 10. We evaluated OC against 41 industry peers in the Building Products industry. OC has a medium profitability rating, but doesn't score so well on its financial health evaluation. OC may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
OC had positive earnings in the past year.
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
OC has a Return On Assets of 2.30%. This is in the lower half of the industry: OC underperforms 73.17% of its industry peers.
OC has a Return On Equity of 6.45%. This is in the lower half of the industry: OC underperforms 68.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.94%, OC is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
OC had an Average Return On Invested Capital over the past 3 years of 13.46%. This is in line with the industry average of 12.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.45% | ||
| ROIC | 10.94% |
ROA(3y)8.93%
ROA(5y)6.54%
ROE(3y)21.01%
ROE(5y)15.27%
ROIC(3y)13.46%
ROIC(5y)12.21%
1.3 Margins
The Profit Margin of OC (2.98%) is worse than 70.73% of its industry peers.
In the last couple of years the Profit Margin of OC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 16.69%, OC is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
OC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.56%, OC perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
In the last couple of years the Gross Margin of OC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.69% | ||
| PM (TTM) | 2.98% | ||
| GM | 29.56% |
OM growth 3Y0.68%
OM growth 5Y9.95%
PM growth 3Y-20.45%
PM growth 5Y0.83%
GM growth 3Y4.35%
GM growth 5Y5.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OC is still creating some value.
Compared to 1 year ago, OC has less shares outstanding
Compared to 5 years ago, OC has less shares outstanding
OC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.52, OC is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
The Debt to FCF ratio of OC is 6.06, which is on the high side as it means it would take OC, 6.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OC (6.06) is worse than 60.98% of its industry peers.
OC has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
OC's Debt to Equity ratio of 1.07 is on the low side compared to the rest of the industry. OC is outperformed by 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.22
WACC8.93%
2.3 Liquidity
OC has a Current Ratio of 1.52. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.52, OC is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
OC has a Quick Ratio of 1.52. This is a bad value and indicates that OC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.95, OC is doing worse than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for OC have decreased by -5.20% in the last year.
Measured over the past years, OC shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.98% on average per year.
The Revenue has grown by 13.08% in the past year. This is quite good.
OC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.92% yearly.
EPS 1Y (TTM)-5.2%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-9.27%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-1.51%
3.2 Future
The Earnings Per Share is expected to grow by 4.96% on average over the next years.
OC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.12% yearly.
EPS Next Y-10.65%
EPS Next 2Y-3.12%
EPS Next 3Y1.95%
EPS Next 5Y4.96%
Revenue Next Year-4.26%
Revenue Next 2Y-1.62%
Revenue Next 3Y0.2%
Revenue Next 5Y2.12%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.61 indicates a reasonable valuation of OC.
97.56% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.55. OC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.57, the valuation of OC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 97.56% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. OC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OC indicates a rather cheap valuation: OC is cheaper than 92.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-3.12%
EPS Next 3Y1.95%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
OC's Dividend Yield is rather good when compared to the industry average which is at 1.24. OC pays more dividend than 95.12% of the companies in the same industry.
OC's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of OC is nicely growing with an annual growth rate of 22.67%!
OC has paid a dividend for at least 10 years, which is a reliable track record.
As OC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)22.67%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
OC pays out 66.67% of its income as dividend. This is not a sustainable payout ratio.
The dividend of OC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP66.67%
EPS Next 2Y-3.12%
EPS Next 3Y1.95%
127.28
-0.98 (-0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change0.47%
Ins Owners0.88%
Ins Owner Change0.29%
Market Cap10.64B
Analysts80
Price Target180.26 (41.62%)
Short Float %2.43%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP66.67%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.79%
Min EPS beat(2)0.52%
Max EPS beat(2)7.07%
EPS beat(4)4
Avg EPS beat(4)5.03%
Min EPS beat(4)0.52%
Max EPS beat(4)7.62%
EPS beat(8)8
Avg EPS beat(8)6.5%
EPS beat(12)12
Avg EPS beat(12)9.25%
EPS beat(16)15
Avg EPS beat(16)9.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.78%
Revenue beat(16)3
Avg Revenue beat(16)-1.29%
PT rev (1m)0.19%
PT rev (3m)3.37%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.95 | ||
| P/FCF | 11.65 | ||
| P/OCF | 6.44 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.07 |
EPS(TTM)14.78
EY11.61%
EPS(NY)14.86
Fwd EY11.67%
FCF(TTM)10.93
FCFY8.59%
OCF(TTM)19.77
OCFY15.53%
SpS133.48
BVpS61.74
TBVpS-3.77
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.45% | ||
| ROCE | 15.64% | ||
| ROIC | 10.94% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 20.37% | ||
| OM | 16.69% | ||
| PM (TTM) | 2.98% | ||
| GM | 29.56% | ||
| FCFM | 8.19% |
ROA(3y)8.93%
ROA(5y)6.54%
ROE(3y)21.01%
ROE(5y)15.27%
ROIC(3y)13.46%
ROIC(5y)12.21%
ROICexc(3y)15.33%
ROICexc(5y)13.82%
ROICexgc(3y)26.6%
ROICexgc(5y)23.16%
ROCE(3y)18.59%
ROCE(5y)16.87%
ROICexcg growth 3Y2.09%
ROICexcg growth 5Y15.22%
ROICexc growth 3Y-5.29%
ROICexc growth 5Y12.91%
OM growth 3Y0.68%
OM growth 5Y9.95%
PM growth 3Y-20.45%
PM growth 5Y0.83%
GM growth 3Y4.35%
GM growth 5Y5.64%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.06 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 104.09% | ||
| Cap/Sales | 6.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.24% | ||
| Profit Quality | 274.47% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.52 |
F-Score6
WACC8.93%
ROIC/WACC1.22
Cap/Depr(3y)88.64%
Cap/Depr(5y)82.21%
Cap/Sales(3y)5.3%
Cap/Sales(5y)5.03%
Profit Quality(3y)132.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.2%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-9.27%
EPS Next Y-10.65%
EPS Next 2Y-3.12%
EPS Next 3Y1.95%
EPS Next 5Y4.96%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-1.51%
Revenue Next Year-4.26%
Revenue Next 2Y-1.62%
Revenue Next 3Y0.2%
Revenue Next 5Y2.12%
EBIT growth 1Y-1.11%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year22.3%
EBIT Next 3Y9.17%
EBIT Next 5Y8.03%
FCF growth 1Y-3.99%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y12.76%
OCF growth 3Y7.97%
OCF growth 5Y12.78%