OWENS CORNING (OC) Stock Fundamental Analysis
NYSE:OC - New York Stock Exchange, Inc. - US6907421019 - Common Stock - Currency: USD
Taking everything into account, OC scores 5 out of 10 in our fundamental rating. OC was compared to 42 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
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 has a worse Return On Assets (4.60%) than 64.29% of its industry peers.
OC has a Return On Equity of 12.74%. This is comparable to the rest of the industry: OC outperforms 50.00% of its industry peers.
OC's Return On Invested Capital of 11.79% is fine compared to the rest of the industry. OC outperforms 64.29% 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 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 12.74% | ||
| ROIC | 11.79% |
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 of 5.90% is in line compared to the rest of the industry. OC outperforms 42.86% of its industry peers.
OC's Profit Margin has been stable in the last couple of years.
OC has a Operating Margin of 17.49%. This is in the better half of the industry: OC outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of OC has grown nicely.
With a Gross Margin value of 29.84%, OC perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Gross Margin of OC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 5.9% | ||
| GM | 29.84% |
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
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.
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 2.61. 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.
Looking at the Altman-Z score, with a value of 2.61, OC is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of OC is 4.14, which is a neutral value as it means it would take OC, 4.14 years of fcf income to pay off all of its debts.
OC has a Debt to FCF ratio (4.14) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that OC has dependencies on debt financing.
OC has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: OC underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.26
WACC9.34%
2.3 Liquidity
A Current Ratio of 1.47 indicates that OC should not have too much problems paying its short term obligations.
OC's Current ratio of 1.47 is on the low side compared to the rest of the industry. OC is outperformed by 73.81% of its industry peers.
OC has a Quick Ratio of 1.47. 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 0.78. This is amonst the worse of the industry: OC underperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.26% over the past year.
The Earnings Per Share has been growing by 27.98% on average over the past years. This is a very strong growth
The Revenue has grown by 13.41% in the past year. This is quite good.
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)13.41%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
3.2 Future
The Earnings Per Share is expected to grow by 3.09% on average over the next years.
The Revenue is expected to grow by 0.77% on average over the next years.
EPS Next Y-10.97%
EPS Next 2Y-1.73%
EPS Next 3Y3.09%
EPS Next 5YN/A
Revenue Next Year-4.55%
Revenue Next 2Y-1.38%
Revenue Next 3Y0.77%
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.
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
OC is valuated reasonably with a Price/Earnings ratio of 8.80.
Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 85.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OC to the average of the S&P500 Index (25.82), we can say OC is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.75, the valuation of OC can be described as very reasonable.
OC's Price/Forward Earnings ratio is rather cheap when compared to the industry. OC is cheaper than 90.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, OC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 90.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.19 | ||
| EV/EBITDA | 6.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-1.73%
EPS Next 3Y3.09%
5. Dividend
5.1 Amount
OC has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
OC's Dividend Yield is rather good when compared to the industry average which is at 1.16. OC pays more dividend than 95.24% of the companies in the same industry.
OC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of OC is nicely growing with an annual growth rate of 22.67%!
OC has paid a dividend for at least 10 years, which is 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
32.15% of the earnings are spent on dividend by OC. This is a low number and sustainable payout ratio.
The dividend of OC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.15%
EPS Next 2Y-1.73%
EPS Next 3Y3.09%
133.8
-1.34 (-0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95.84%
Inst Owner Change2.76%
Ins Owners0.89%
Ins Owner Change2.6%
Market Cap11.45B
Analysts78.52
Price Target185.52 (38.65%)
Short Float %1.45%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP32.15%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.27%
Min EPS beat(2)4.92%
Max EPS beat(2)7.62%
EPS beat(4)4
Avg EPS beat(4)7.47%
Min EPS beat(4)4.15%
Max EPS beat(4)13.2%
EPS beat(8)8
Avg EPS beat(8)11.57%
EPS beat(12)12
Avg EPS beat(12)10.69%
EPS beat(16)15
Avg EPS beat(16)10.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.68%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)2
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)-7.71%
PT rev (3m)-13.04%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-18.52%
EPS NY rev (1m)-5.92%
EPS NY rev (3m)-16%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-12.56%
Revenue NY rev (1m)-1.45%
Revenue NY rev (3m)-12.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 8.75 | ||
| P/S | 1.04 | ||
| P/FCF | 9.19 | ||
| P/OCF | 6.05 | ||
| P/B | 2.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.3 |
EPS(TTM)15.21
EY11.37%
EPS(NY)15.29
Fwd EY11.42%
FCF(TTM)14.55
FCFY10.88%
OCF(TTM)22.12
OCFY16.53%
SpS128.3
BVpS59.35
TBVpS-5.31
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 12.74% | ||
| ROCE | 16.29% | ||
| ROIC | 11.79% | ||
| ROICexc | 12.17% | ||
| ROICexgc | 23.6% | ||
| OM | 17.49% | ||
| PM (TTM) | 5.9% | ||
| GM | 29.84% | ||
| FCFM | 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%
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 95.57% | ||
| Cap/Sales | 5.9% | ||
| Interest Coverage | 8.49 | ||
| Cash Conversion | 72.88% | ||
| Profit Quality | 192.43% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.61 |
F-Score5
WACC9.34%
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-10.97%
EPS Next 2Y-1.73%
EPS Next 3Y3.09%
EPS Next 5YN/A
Revenue 1Y (TTM)13.41%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
Revenue Next Year-4.55%
Revenue Next 2Y-1.38%
Revenue Next 3Y0.77%
Revenue Next 5YN/A
EBIT growth 1Y7.09%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year29.27%
EBIT Next 3Y12.37%
EBIT Next 5YN/A
FCF growth 1Y4.36%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y10.06%
OCF growth 3Y7.97%
OCF growth 5Y12.78%