OWENS CORNING (OC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OC - US6907421019 - Common Stock
112.5 USD
-1.2 (-1.06%)
112.5 USD
0 (0%)
Overall OC gets a fundamental rating of 4 out of 10. We evaluated OC against 41 industry peers in the Building Products industry. While OC is still in line with the averages on profitability rating, there are concerns on its financial health. OC has a bad growth rate and is valued cheaply.
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.
Each year in the past 5 years OC had a positive operating cash flow.
1.2 Ratios
OC has a worse Return On Assets (-3.57%) than 73.17% of its industry peers.
OC has a Return On Equity of -10.96%. This is in the lower half of the industry: OC underperforms 73.17% of its industry peers.
With a decent Return On Invested Capital value of 11.83%, OC is doing good in the industry, outperforming 68.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OC is in line with the industry average of 12.49%.
| 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
In the last couple of years the Profit Margin of OC has remained more or less at the same level.
The Operating Margin of OC (16.48%) is better than 63.41% of its industry peers.
In the last couple of years the Operating Margin of OC has grown nicely.
OC has a Gross Margin of 29.42%. This is comparable to the rest of the industry: OC outperforms 46.34% 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.
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.
The debt/assets ratio for OC is higher compared to a year ago.
2.2 Solvency
OC has an Altman-Z score of 2.44. 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 has a worse Altman-Z score (2.44) than 80.49% of its industry peers.
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 of 4.65. This is comparable to the rest of the industry: OC outperforms 51.22% 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.
Looking at the Debt to Equity ratio, with a value of 1.07, OC is doing worse than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.31
WACC9.01%
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 75.61% 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. OC is outperformed by 75.61% 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%.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.98% yearly.
The Revenue has been growing slightly by 3.47% in the past 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.
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-12.04%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
EPS Next 5Y-0.69%
Revenue Next Year-4.65%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.15%
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.
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 8.00, the valuation of OC can be described as very cheap.
OC's Price/Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 95.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. OC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.84, the valuation of OC can be described as very cheap.
Based on the Price/Forward Earnings ratio, OC is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
OC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 97.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.35 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 2.47%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of OC has falen by -27.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.31, 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 comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
On average, the dividend of OC grows each year by 22.67%, which is quite nice.
OC has paid a dividend for at least 10 years, which is 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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-47.3%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
112.5
-1.2 (-1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change2.6%
Ins Owners0.88%
Ins Owner Change0.43%
Market Cap9.25B
Revenue(TTM)10.80B
Net Income(TTM)-482.00M
Analysts79.29
Price Target144.13 (28.12%)
Short Float %3.24%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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)-20.04%
PT rev (3m)-19.89%
EPS NQ rev (1m)-46.48%
EPS NQ rev (3m)-49.5%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)-10.95%
Revenue NQ rev (3m)-12.3%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.86 | ||
| P/FCF | 8.35 | ||
| P/OCF | 4.94 | ||
| P/B | 2.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.66 |
EPS(TTM)14.07
EY12.51%
EPS(NY)14.36
Fwd EY12.76%
FCF(TTM)13.48
FCFY11.98%
OCF(TTM)22.78
OCFY20.25%
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
WACC9.01%
ROIC/WACC1.31
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-12.04%
EPS Next 2Y-4.76%
EPS Next 3Y0.97%
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-4.65%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.15%
Revenue Next 5Y-0.69%
EBIT growth 1Y-8.53%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year22.3%
EBIT Next 3Y9.17%
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 -12.04% in the next year.