OWENS CORNING (OC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OC - US6907421019 - Common Stock
124.39 USD
-0.95 (-0.76%)
124.39 USD
0 (0%)
OC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 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 is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- OC had positive earnings in the past year.
- OC had a positive operating cash flow in the past year.
- OC had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years OC had a positive operating cash flow.
1.2 Ratios
- OC has a Return On Assets of -3.57%. This is in the lower half of the industry: OC underperforms 76.19% of its industry peers.
- OC has a worse Return On Equity (-10.96%) than 73.81% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.83%, OC is in the better half of the industry, outperforming 64.29% 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 12.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -10.96% | ||
| ROIC | 11.83% |
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
- OC's Profit Margin has been stable in the last couple of years.
- OC has a better Operating Margin (16.48%) than 64.29% of its industry peers.
- OC's Operating Margin has improved in the last couple of years.
- OC's Gross Margin of 29.42% is in line compared to the rest of the industry. OC outperforms 47.62% of its industry peers.
- OC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.48% | ||
| PM (TTM) | N/A | ||
| GM | 29.42% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OC is creating some value.
- Compared to 1 year ago, OC has less shares outstanding
- The number of shares outstanding for OC has been reduced compared to 5 years ago.
- Compared to 1 year ago, OC has a worse debt to assets ratio.
2.2 Solvency
- OC has an Altman-Z score of 2.51. This is not the best score and indicates that OC is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.51, OC is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
- OC has a debt to FCF ratio of 4.65. This is a neutral value as OC would need 4.65 years to pay back of all of its debts.
- OC has a Debt to FCF ratio (4.65) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.07 is on the high side and indicates that OC has dependencies on debt financing.
- OC has a worse Debt to Equity ratio (1.07) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.36
WACC8.69%
2.3 Liquidity
- A Current Ratio of 1.40 indicates that OC should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.40, OC is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
- OC has a Quick Ratio of 1.40. This is a bad value and indicates that OC is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of OC (0.86) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- OC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.06%.
- The Earnings Per Share has been growing by 27.98% on average over the past years. This is a very strong growth
- Looking at the last year, OC shows a small growth in Revenue. The Revenue has grown by 3.47% in the last year.
- The Revenue has been growing by 8.92% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.06%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-16.21%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
3.2 Future
- The Earnings Per Share is expected to decrease by -0.69% on average over the next years.
- Based on estimates for the next years, OC will show a decrease in Revenue. The Revenue will decrease by -0.69% on average per year.
EPS Next Y-20.56%
EPS Next 2Y-16.73%
EPS Next 3Y-6.28%
EPS Next 5Y-0.69%
Revenue Next Year-7.37%
Revenue Next 2Y-5.34%
Revenue Next 3Y-2.44%
Revenue Next 5Y-0.69%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.84 indicates a reasonable valuation of OC.
- 95.24% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
- OC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- OC is valuated reasonably with a Price/Forward Earnings ratio of 11.33.
- 88.10% of the companies in the same industry are more expensive than OC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
- OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 97.62% 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 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.23 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
- OC's earnings are expected to decrease with -6.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-16.73%
EPS Next 3Y-6.28%
5. Dividend
5.1 Amount
- OC has a Yearly Dividend Yield of 2.53%.
- Compared to an average industry Dividend Yield of 0.67, OC pays a better dividend. On top of this OC pays more dividend than 97.62% of the companies listed in the same industry.
- OC's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
- On average, the dividend of OC grows each year by 22.67%, which is quite nice.
- OC has been paying a dividend for at least 10 years, so it has 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
- The earnings of OC are negative and hence is the payout ratio. OC will probably not be able to sustain this dividend level.
DP-47.3%
EPS Next 2Y-16.73%
EPS Next 3Y-6.28%
OWENS CORNING / OC FAQ
What is the fundamental rating for OC stock?
ChartMill assigns a fundamental rating of 4 / 10 to OC.
Can you provide the valuation status for OWENS CORNING?
ChartMill assigns a valuation rating of 7 / 10 to OWENS CORNING (OC). This can be considered as Undervalued.
Can you provide the profitability details for OWENS CORNING?
OWENS CORNING (OC) has a profitability rating of 5 / 10.
How financially healthy is OWENS CORNING?
The financial health rating of OWENS CORNING (OC) is 3 / 10.
Is the dividend of OWENS CORNING sustainable?
The dividend rating of OWENS CORNING (OC) is 5 / 10 and the dividend payout ratio is -47.3%.