OWENS CORNING (OC)
US6907421019 - Common Stock
We assign a fundamental rating of 6 out of 10 to OC. OC was compared to 40 industry peers in the Building Products industry. While OC has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OC. With these ratings, OC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year OC was profitable.
OC had a positive operating cash flow in the past year.
OC had positive earnings in 4 of the past 5 years.
OC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OC (9.87%) is comparable to the rest of the industry.
OC has a better Return On Equity (21.27%) than 65.00% of its industry peers.
OC has a Return On Invested Capital of 15.71%. This is in the better half of the industry: OC outperforms 70.00% 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 13.86%.
The 3 year average ROIC (14.40%) for OC is below the current ROIC(15.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 21.27% | ||
| ROIC | 15.71% |
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
The Profit Margin of OC (11.53%) is better than 65.00% of its industry peers.
In the last couple of years the Profit Margin of OC has grown nicely.
OC's Operating Margin of 19.32% is fine compared to the rest of the industry. OC outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of OC has grown nicely.
OC has a Gross Margin (29.81%) which is comparable to the rest of the industry.
OC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.32% | ||
| PM (TTM) | 11.53% | ||
| GM | 29.81% |
OM growth 3Y13.65%
OM growth 5Y10.53%
PM growth 3YN/A
PM growth 5Y9.86%
GM growth 3Y7.46%
GM growth 5Y4.23%
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.
The number of shares outstanding for OC has been reduced compared to 1 year ago.
Compared to 5 years ago, OC has less shares outstanding
The debt/assets ratio for OC has been reduced compared to a year ago.
2.2 Solvency
OC has an Altman-Z score of 3.72. This indicates that OC is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.72, OC perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
OC has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as OC would need 2.22 years to pay back of all of its debts.
OC's Debt to FCF ratio of 2.22 is in line compared to the rest of the industry. OC outperforms 57.50% of its industry peers.
OC has a Debt/Equity ratio of 0.51. This is a neutral value indicating OC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, OC perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
Although OC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.53
WACC10.26%
2.3 Liquidity
OC has a Current Ratio of 1.76. This is a normal value and indicates that OC is financially healthy and should not expect problems in meeting its short term obligations.
OC has a Current ratio of 1.76. This is in the lower half of the industry: OC underperforms 70.00% of its industry peers.
OC has a Quick Ratio of 1.22. 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 Quick ratio value of 1.22, OC is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.83%, which is quite good.
The Earnings Per Share has been growing by 24.02% on average over the past years. This is a very strong growth
Looking at the last year, OC shows a decrease in Revenue. The Revenue has decreased by -1.03% 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)19.83%
EPS 3Y41.36%
EPS 5Y24.02%
EPS Q2Q%29.6%
Revenue 1Y (TTM)-1.03%
Revenue growth 3Y11.11%
Revenue growth 5Y6.52%
Sales Q2Q%-1.33%
3.2 Future
The Earnings Per Share is expected to grow by 6.11% 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 4.43% yearly.
EPS Next Y8.51%
EPS Next 2Y7.15%
EPS Next 3Y6.11%
EPS Next 5YN/A
Revenue Next Year4.51%
Revenue Next 2Y5.36%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
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
OC is valuated reasonably with a Price/Earnings ratio of 11.87.
90.00% of the companies in the same industry are more expensive than OC, based on the Price/Earnings ratio.
OC is valuated cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.93, which indicates a very decent valuation of OC.
87.50% 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 20.59, OC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaper than 97.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued a bit cheaper than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.25 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of OC may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)0.49
EPS Next 2Y7.15%
EPS Next 3Y6.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, OC has a reasonable but not impressive dividend return.
OC's Dividend Yield is rather good when compared to the industry average which is at 1.03. OC pays more dividend than 85.00% of the companies in the same industry.
With a Dividend Yield of 1.38, OC pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
On average, the dividend of OC grows each year by 20.43%, 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)20.43%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
OC pays out 17.27% of its income as dividend. This is a sustainable payout ratio.
The dividend of OC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.27%
EPS Next 2Y7.15%
EPS Next 3Y6.11%
OWENS CORNING
NYSE:OC (7/26/2024, 7:04:00 PM)
After market: 180.09 0 (0%)180.09
+4.36 (+2.48%)
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 Cap15.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 10.93 | ||
| 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)1.39
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 21.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.32% | ||
| PM (TTM) | 11.53% | ||
| GM | 29.81% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.22 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)19.83%
EPS 3Y41.36%
EPS 5Y
EPS Q2Q%
EPS Next Y8.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.03%
Revenue growth 3Y11.11%
Revenue growth 5Y
Sales 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