OWENS CORNING (OC) Stock Fundamental Analysis
NYSE:OC - New York Stock Exchange, Inc. - US6907421019 - Common Stock - Currency: USD
OC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. There are concerns on the financial health of OC while its profitability can be described as average. OC is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year OC was profitable.
OC had a positive operating cash flow in the past year.
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's Return On Assets of 1.79% is on the low side compared to the rest of the industry. OC is outperformed by 73.17% of its industry peers.
OC has a Return On Equity of 5.22%. This is in the lower half of the industry: OC underperforms 70.73% of its industry peers.
The Return On Invested Capital of OC (11.34%) is better than 63.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OC is in line with the industry average of 12.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 5.22% | ||
| ROIC | 11.34% |
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 (2.28%) is worse than 73.17% of its industry peers.
OC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 16.84%, OC is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
In the last couple of years the Operating Margin of OC has grown nicely.
With a Gross Margin value of 29.57%, OC perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
OC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 2.28% | ||
| GM | 29.57% |
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.
The number of shares outstanding for OC has been reduced compared to 1 year ago.
OC has less shares outstanding than it did 5 years ago.
OC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.56 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
OC has a Altman-Z score of 2.56. This is in the lower half of the industry: OC underperforms 70.73% of its industry peers.
The Debt to FCF ratio of OC is 4.98, which is a neutral value as it means it would take OC, 4.98 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.98, OC perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that OC has dependencies on debt financing.
The Debt to Equity ratio of OC (1.14) is worse than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.26
WACC8.99%
2.3 Liquidity
OC has a Current Ratio of 1.44. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
OC's Current ratio of 1.44 is on the low side compared to the rest of the industry. OC is outperformed by 75.61% of its industry peers.
A Quick Ratio of 0.93 indicates that OC may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, OC is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
OC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.26%.
The Earnings Per Share has been growing by 27.98% on average over the past years. This is a very strong growth
OC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.16%.
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)0.26%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-17.27%
Revenue 1Y (TTM)16.16%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
3.2 Future
The Earnings Per Share is expected to grow by 5.03% 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 1.92% yearly.
EPS Next Y-12.27%
EPS Next 2Y-2.25%
EPS Next 3Y2.51%
EPS Next 5Y5.03%
Revenue Next Year-4.82%
Revenue Next 2Y-1.45%
Revenue Next 3Y0.81%
Revenue Next 5Y1.92%
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.
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
Based on the Price/Earnings ratio of 9.04, the valuation of OC can be described as reasonable.
95.12% 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 (26.82), we can say OC is valued rather cheaply.
OC is valuated reasonably with a Price/Forward Earnings ratio of 9.09.
95.12% of the companies in the same industry are more expensive than OC, based on the Price/Forward Earnings ratio.
OC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaper than 97.56% of the companies in the same industry.
OC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OC is cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.43 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-2.25%
EPS Next 3Y2.51%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.15, OC pays a better dividend. On top of this OC pays more dividend than 97.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, OC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of OC is nicely growing with an annual growth rate of 22.67%!
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)22.67%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
OC pays out 84.31% of its income as dividend. This is not a sustainable payout ratio.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.31%
EPS Next 2Y-2.25%
EPS Next 3Y2.51%
137.5
+0.94 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95.68%
Inst Owner Change-0.36%
Ins Owners0.88%
Ins Owner Change4.19%
Market Cap11.69B
Analysts80
Price Target175.43 (27.59%)
Short Float %1.52%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP84.31%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.07%
Min EPS beat(2)0.52%
Max EPS beat(2)7.62%
EPS beat(4)4
Avg EPS beat(4)4.3%
Min EPS beat(4)0.52%
Max EPS beat(4)7.62%
EPS beat(8)8
Avg EPS beat(8)8.97%
EPS beat(12)12
Avg EPS beat(12)9.62%
EPS beat(16)15
Avg EPS beat(16)9.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.83%
Revenue beat(16)4
Avg Revenue beat(16)-0.66%
PT rev (1m)0.6%
PT rev (3m)-5.44%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-9.96%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-7.29%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 9.09 | ||
| P/S | 1.04 | ||
| P/FCF | 10.43 | ||
| P/OCF | 6.43 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.29 |
EPS(TTM)15.21
EY11.06%
EPS(NY)15.13
Fwd EY11%
FCF(TTM)13.18
FCFY9.59%
OCF(TTM)21.39
OCFY15.55%
SpS131.75
BVpS57.4
TBVpS-6.35
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 5.22% | ||
| ROCE | 16.34% | ||
| ROIC | 11.34% | ||
| ROICexc | 11.73% | ||
| ROICexgc | 21.95% | ||
| OM | 16.84% | ||
| PM (TTM) | 2.28% | ||
| GM | 29.57% | ||
| FCFM | 10% |
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-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 99.01% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | 439.61% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.56 |
F-Score4
WACC8.99%
ROIC/WACC1.26
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)0.26%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-17.27%
EPS Next Y-12.27%
EPS Next 2Y-2.25%
EPS Next 3Y2.51%
EPS Next 5Y5.03%
Revenue 1Y (TTM)16.16%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
Revenue Next Year-4.82%
Revenue Next 2Y-1.45%
Revenue Next 3Y0.81%
Revenue Next 5Y1.92%
EBIT growth 1Y1.23%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year21.67%
EBIT Next 3Y9.77%
EBIT Next 5Y8.46%
FCF growth 1Y19.13%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y26.5%
OCF growth 3Y7.97%
OCF growth 5Y12.78%