OWENS CORNING (OC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OC - US6907421019 - Common Stock
113.74 USD
+0.19 (+0.17%)
113.74 USD
0 (0%)
Overall OC gets a fundamental rating of 4 out of 10. We evaluated OC 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 cheap, but on the other hand it scores bad on growth.
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.
OC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OC (-3.57%) is worse than 73.81% of its industry peers.
OC's Return On Equity of -10.96% is on the low side compared to the rest of the industry. OC is outperformed by 71.43% 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 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OC is in line with the industry average of 12.61%.
| 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.
Looking at the Operating Margin, with a value of 16.48%, OC is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
OC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 29.42%, OC is in line with its industry, outperforming 47.62% of the companies in the same industry.
OC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.48% | ||
| 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.
OC has less shares outstanding than it did 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 2.44 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
OC has a worse Altman-Z score (2.44) than 76.19% of its industry peers.
The Debt to FCF ratio of OC is 4.65, which is a neutral value as it means it would take OC, 4.65 years of fcf income to pay off all of its debts.
OC has a Debt to FCF ratio of 4.65. This is comparable to the rest of the industry: OC outperforms 52.38% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that OC has dependencies on debt financing.
The Debt to Equity ratio of OC (1.07) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.28
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.40 indicates that OC should not have too much problems paying its short term obligations.
OC's Current ratio of 1.40 is on the low side compared to the rest of the industry. OC is outperformed by 76.19% of its industry peers.
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.
OC has a Quick ratio of 0.86. This is in the lower half of the industry: OC underperforms 76.19% 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%.
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.
Looking at the last year, OC shows a small growth in Revenue. The Revenue has grown by 3.47% in the last year.
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)-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
OC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.69% yearly.
OC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.69% yearly.
EPS Next Y-20.58%
EPS Next 2Y-16.54%
EPS Next 3Y-5.62%
EPS Next 5Y-0.69%
Revenue Next Year-7.38%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.43%
Revenue Next 5Y-0.69%
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
Based on the Price/Earnings ratio of 8.08, the valuation of OC can be described as reasonable.
OC's Price/Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 95.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, OC is valued rather cheaply.
OC is valuated reasonably with a Price/Forward Earnings ratio of 10.31.
OC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 95.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OC indicates a rather cheap valuation: OC is cheaper than 97.62% of the companies listed in the same industry.
OC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OC is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
OC's earnings are expected to decrease with -5.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-16.54%
EPS Next 3Y-5.62%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.78%.
The stock price of OC dropped by -20.53% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.72, OC pays a better dividend. On top of this OC pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, OC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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-16.54%
EPS Next 3Y-5.62%
113.74
+0.19 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.76%
Inst Owner Change2.67%
Ins Owners0.9%
Ins Owner Change0.38%
Market Cap9.35B
Revenue(TTM)10.80B
Net Income(TTM)-482.00M
Analysts78.57
Price Target143.83 (26.46%)
Short Float %3.34%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP-47.3%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-3.93%
Max EPS beat(2)7.07%
EPS beat(4)3
Avg EPS beat(4)2.82%
Min EPS beat(4)-3.93%
Max EPS beat(4)7.62%
EPS beat(8)7
Avg EPS beat(8)5.34%
EPS beat(12)11
Avg EPS beat(12)8.21%
EPS beat(16)15
Avg EPS beat(16)8.98%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-1.85%
Revenue beat(12)1
Avg Revenue beat(12)-1.75%
Revenue beat(16)3
Avg Revenue beat(16)-1.44%
PT rev (1m)-0.21%
PT rev (3m)-20.06%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-49.55%
EPS NY rev (1m)-9.71%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-13.07%
Revenue NY rev (1m)-2.85%
Revenue NY rev (3m)-3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.87 | ||
| P/FCF | 8.44 | ||
| P/OCF | 4.99 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.7 |
EPS(TTM)14.07
EY12.37%
EPS(NY)11.03
Fwd EY9.7%
FCF(TTM)13.48
FCFY11.85%
OCF(TTM)22.78
OCFY20.03%
SpS131.42
BVpS53.52
TBVpS-2.91
PEG (NY)N/A
PEG (5Y)0.29
Graham Number130.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -10.96% | ||
| ROCE | 16.41% | ||
| ROIC | 11.83% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 21.6% | ||
| OM | 16.48% | ||
| PM (TTM) | N/A | ||
| GM | 29.42% | ||
| FCFM | 10.26% |
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%
ROICexgc growth 3Y2.09%
ROICexgc 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 108.06% | ||
| Cap/Sales | 7.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.44 |
F-Score4
WACC9.25%
ROIC/WACC1.28
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)-11.06%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-16.21%
EPS Next Y-20.58%
EPS Next 2Y-16.54%
EPS Next 3Y-5.62%
EPS Next 5Y-0.69%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%-11.88%
Revenue Next Year-7.38%
Revenue Next 2Y-5.35%
Revenue Next 3Y-2.43%
Revenue Next 5Y-0.69%
EBIT growth 1Y-8.53%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year13.3%
EBIT Next 3Y3.19%
EBIT Next 5Y2.49%
FCF growth 1Y-4.97%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y10.38%
OCF growth 3Y7.97%
OCF growth 5Y12.78%
OWENS CORNING / OC FAQ
What is the fundamental rating for OC stock?
ChartMill assigns a fundamental rating of 4 / 10 to OC.
What is the valuation status of OWENS CORNING (OC) stock?
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.
What is the financial health of OWENS CORNING (OC) stock?
The financial health rating of OWENS CORNING (OC) is 3 / 10.
Can you provide the expected EPS growth for OC stock?
The Earnings per Share (EPS) of OWENS CORNING (OC) is expected to decline by -20.58% in the next year.