OWENS CORNING (OC) Stock Fundamental Analysis
NYSE:OC - New York Stock Exchange, Inc. - US6907421019 - Common Stock - Currency: USD
OC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. OC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Each year in the past 5 years OC had a positive operating cash flow.
1.2 Ratios
OC has a worse Return On Assets (1.79%) than 75.61% of its industry peers.
OC has a worse Return On Equity (5.22%) than 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.34%, OC is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
OC had an Average Return On Invested Capital over the past 3 years of 13.46%. This is in line with the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 5.22% | ||
| ROIC | 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%
1.3 Margins
With a Profit Margin value of 2.28%, OC is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
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 16.84% is fine compared to the rest of the industry. OC outperforms 65.85% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.57%, OC perfoms like the industry average, outperforming 41.46% 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 | 16.84% | ||
| PM (TTM) | 2.28% | ||
| GM | 29.57% |
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
OC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, OC has less shares outstanding
Compared to 5 years ago, OC has less shares outstanding
Compared to 1 year ago, OC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.64 indicates that OC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.64, OC is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
The Debt to FCF ratio of OC is 4.98, which is a neutral value as it means it would take OC, 4.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OC (4.98) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that OC has dependencies on debt financing.
The Debt to Equity ratio of OC (1.14) is worse than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.18
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.44 indicates that OC should not have too much problems paying its short term obligations.
The Current ratio of OC (1.44) is worse than 75.61% of its industry peers.
OC has a Quick Ratio of 1.44. 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 0.93 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 | 1.44 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.26% over the past year.
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 16.16%.
The Revenue has been growing by 8.92% on average over the past years. This is quite good.
EPS 1Y (TTM)0.26%
EPS 3Y20.49%
EPS 5Y27.98%
EPS Q2Q%-17.27%
Revenue 1Y (TTM)16.16%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
3.2 Future
Based on estimates for the next years, OC will show a small growth in Earnings Per Share. The EPS will grow by 5.03% on average per year.
The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y-12.29%
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
EPS Next 5Y5.03%
Revenue Next Year-4.82%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.77%
Revenue Next 5Y1.92%
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
The Price/Earnings ratio is 9.69, which indicates a very decent valuation of OC.
Based on the Price/Earnings ratio, OC is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OC to the average of the S&P500 Index (27.30), we can say OC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.75, the valuation of OC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 92.68% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. OC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 9.75 |
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 95.12% of the companies listed in the same industry.
95.12% of the companies in the same industry are more expensive than OC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.19 | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, 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 1.14. OC pays more dividend than 95.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, OC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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
OC pays out 84.31% 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.
DP84.31%
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
147.44
-2.79 (-1.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95.68%
Inst Owner Change0%
Ins Owners0.88%
Ins Owner Change3.31%
Market Cap12.54B
Analysts80
Price Target174.38 (18.27%)
Short Float %2.29%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend2.41
Dividend Growth(5Y)22.67%
DP84.31%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.07%
Min EPS beat(2)0.52%
Max EPS beat(2)7.62%
EPS beat(4)4
Avg EPS beat(4)4.3%
Min EPS beat(4)0.52%
Max EPS beat(4)7.62%
EPS beat(8)8
Avg EPS beat(8)8.97%
EPS beat(12)12
Avg EPS beat(12)9.62%
EPS beat(16)15
Avg EPS beat(16)9.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.53%
Revenue beat(8)0
Avg Revenue beat(8)-2.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.83%
Revenue beat(16)4
Avg Revenue beat(16)-0.66%
PT rev (1m)-6.01%
PT rev (3m)-13.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.32%
EPS NY rev (1m)-1.48%
EPS NY rev (3m)-8.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 9.75 | ||
| P/S | 1.12 | ||
| P/FCF | 11.19 | ||
| P/OCF | 6.89 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.73 |
EPS(TTM)15.21
EY10.32%
EPS(NY)15.13
Fwd EY10.26%
FCF(TTM)13.18
FCFY8.94%
OCF(TTM)21.39
OCFY14.51%
SpS131.75
BVpS57.4
TBVpS-6.35
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 5.22% | ||
| ROCE | 16.34% | ||
| ROIC | 11.34% | ||
| ROICexc | 11.73% | ||
| ROICexgc | 21.95% | ||
| OM | 16.84% | ||
| PM (TTM) | 2.28% | ||
| GM | 29.57% | ||
| FCFM | 10% |
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-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 99.01% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | 439.61% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.64 |
F-Score4
WACC9.63%
ROIC/WACC1.18
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-12.29%
EPS Next 2Y-2.24%
EPS Next 3Y2.56%
EPS Next 5Y5.03%
Revenue 1Y (TTM)16.16%
Revenue growth 3Y8.9%
Revenue growth 5Y8.92%
Sales Q2Q%10%
Revenue Next Year-4.82%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.77%
Revenue Next 5Y1.92%
EBIT growth 1Y1.23%
EBIT growth 3Y9.64%
EBIT growth 5Y19.76%
EBIT Next Year21.67%
EBIT Next 3Y9.77%
EBIT Next 5Y8.46%
FCF growth 1Y19.13%
FCF growth 3Y4.63%
FCF growth 5Y16.11%
OCF growth 1Y26.5%
OCF growth 3Y7.97%
OCF growth 5Y12.78%