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. OC has a medium profitability rating, but doesn't score so well on its financial health evaluation. OC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 has a worse Return On Assets (1.79%) than 73.81% of its industry peers.
OC's Return On Equity of 5.22% is on the low side compared to the rest of the industry. OC is outperformed by 69.05% of its industry peers.
The Return On Invested Capital of OC (11.34%) is better than 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 12.71%.
| 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
OC has a Profit Margin of 2.28%. This is in the lower half of the industry: OC underperforms 73.81% of its industry peers.
OC's Profit Margin has been stable in the last couple of years.
OC's Operating Margin of 16.84% is fine compared to the rest of the industry. OC outperforms 66.67% of its industry peers.
OC's Operating Margin has improved in the last couple of years.
The Gross Margin of OC (29.57%) 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 | 16.84% | ||
| 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
The number of shares outstanding for OC has been reduced compared to 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 2.58. 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.
The Altman-Z score of OC (2.58) is worse than 66.67% of its industry peers.
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.
OC has a Debt to FCF ratio (4.98) which is in line with its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that OC has dependencies on debt financing.
OC's Debt to Equity ratio of 1.14 is on the low side compared to the rest of the industry. OC is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.88
WACC12.84%
2.3 Liquidity
A Current Ratio of 1.44 indicates that OC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.44, OC is doing worse than 76.19% of the companies in the same industry.
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.
With a Quick ratio value of 0.93, OC is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
OC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.26%.
OC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.98% yearly.
Looking at the last year, OC shows a quite strong growth in Revenue. The Revenue has grown by 16.16% in the last year.
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
OC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.03% yearly.
OC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y-10.97%
EPS Next 2Y-1.73%
EPS Next 3Y3.09%
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
A Price/Earnings ratio of 8.84 indicates a reasonable valuation of OC.
Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 90.48% of the companies listed in the same industry.
OC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 8.80, the valuation of OC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, OC is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. OC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
OC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OC is cheaper than 95.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OC is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-1.73%
EPS Next 3Y3.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, 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 1.20. OC pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, OC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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.
OC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.31%
EPS Next 2Y-1.73%
EPS Next 3Y3.09%
134.49
-4.36 (-3.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners95.84%
Inst Owner Change2.7%
Ins Owners0.89%
Ins Owner Change2.65%
Market Cap11.44B
Analysts80
Price Target174.38 (29.66%)
Short Float %1.28%
Short Ratio1.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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)-14.37%
EPS NQ rev (1m)-10.06%
EPS NQ rev (3m)-14.05%
EPS NY rev (1m)-5.92%
EPS NY rev (3m)-16%
Revenue NQ rev (1m)-2.56%
Revenue NQ rev (3m)-4.69%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-12.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 8.8 | ||
| P/S | 1.02 | ||
| P/FCF | 10.2 | ||
| P/OCF | 6.29 | ||
| P/B | 2.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)15.21
EY11.31%
EPS(NY)15.29
Fwd EY11.37%
FCF(TTM)13.18
FCFY9.8%
OCF(TTM)21.39
OCFY15.9%
SpS131.75
BVpS57.4
TBVpS-6.35
PEG (NY)N/A
PEG (5Y)0.32
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 | 2.58 |
F-Score4
WACC12.84%
ROIC/WACC0.88
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 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%