OWENS CORNING (OC) Stock Fundamental Analysis
NYSE:OC - US6907421019 - Common Stock
152.41 USD
-0.45 (-0.29%)
152.41 USD
0 (0%)
Taking everything into account, OC scores 4 out of 10 in our fundamental rating. OC was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on OC.
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.
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
OC's Return On Assets of 2.30% is on the low side compared to the rest of the industry. OC is outperformed by 73.17% of its industry peers.
OC's Return On Equity of 6.45% is on the low side compared to the rest of the industry. OC is outperformed by 68.29% of its industry peers.
OC has a Return On Invested Capital of 10.94%. This is in the better half of the industry: OC outperforms 68.29% 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 12.73%.
| 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
Looking at the Profit Margin, with a value of 2.98%, OC is doing worse than 70.73% of the companies in the same industry.
In the last couple of years the Profit Margin of OC has remained more or less at the same level.
OC's Operating Margin of 16.69% is fine compared to the rest of the industry. OC outperforms 63.41% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
OC has a Gross Margin (29.56%) which is comparable to the rest of the 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
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.
Compared to 5 years ago, OC has less shares outstanding
OC has a worse debt/assets ratio than last year.
2.2 Solvency
OC has an Altman-Z score of 2.65. 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.
OC's Altman-Z score of 2.65 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 debt to FCF ratio of 6.06. This is a slightly negative value and a sign of low solvency as OC would need 6.06 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.06, OC is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.07 is on the high side and indicates that OC has dependencies on debt financing.
OC has a Debt to Equity ratio of 1.07. This is amonst the worse of the industry: OC underperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.1
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.52 indicates that OC should not have too much problems paying its short term obligations.
OC has a Current ratio of 1.52. This is in the lower half of the industry: OC underperforms 70.73% of its industry peers.
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.
OC has a Quick ratio of 0.95. This is in the lower half of the industry: OC underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
OC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.20%.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.98% yearly.
OC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.08%.
Measured over the past years, OC shows a quite strong growth in Revenue. The Revenue has been growing by 8.92% on average per year.
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 5.17% on average over the next years.
Based on estimates for the next years, OC will show a small growth in Revenue. The Revenue will grow by 2.19% on average per year.
EPS Next Y-10.65%
EPS Next 2Y-3.12%
EPS Next 3Y2.06%
EPS Next 5Y5.17%
Revenue Next Year-4.12%
Revenue Next 2Y-1.53%
Revenue Next 3Y0.21%
Revenue Next 5Y2.19%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.31, the valuation of OC can be described as very reasonable.
Based on the Price/Earnings ratio, OC is valued cheaper than 97.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of OC to the average of the S&P500 Index (27.17), we can say OC is valued rather cheaply.
OC is valuated reasonably with a Price/Forward Earnings ratio of 10.26.
OC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 95.12% of the companies in the same industry.
OC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
OC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OC is cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.95 | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-3.12%
EPS Next 3Y2.06%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.14, OC pays a better dividend. On top of this OC pays more dividend than 95.12% of the companies listed in the same industry.
OC's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
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 3Y2.06%
152.41
-0.45 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners94.2%
Inst Owner Change-3.12%
Ins Owners0.84%
Ins Owner Change0.41%
Market Cap12.75B
Analysts80
Price Target179.92 (18.05%)
Short Float %2.13%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)2.56%
PT rev (3m)-3.02%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-15.46%
EPS NY rev (1m)1.85%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)-4.77%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 10.26 | ||
| P/S | 1.14 | ||
| P/FCF | 13.95 | ||
| P/OCF | 7.71 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.85 |
EPS(TTM)14.78
EY9.7%
EPS(NY)14.86
Fwd EY9.75%
FCF(TTM)10.93
FCFY7.17%
OCF(TTM)19.77
OCFY12.97%
SpS133.48
BVpS61.74
TBVpS-3.77
PEG (NY)N/A
PEG (5Y)0.37
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 | 2.65 |
F-Score6
WACC9.97%
ROIC/WACC1.1
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 3Y2.06%
EPS Next 5Y5.17%
Revenue 1Y (TTM)13.08%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-1.51%
Revenue Next Year-4.12%
Revenue Next 2Y-1.53%
Revenue Next 3Y0.21%
Revenue Next 5Y2.19%
EBIT growth 1Y-1.11%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year21.34%
EBIT Next 3Y9.78%
EBIT Next 5Y8.11%
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%