O-I GLASS INC (OI) Stock Fundamental Analysis
NYSE:OI - New York Stock Exchange, Inc. - US67098H1041 - Common Stock - Currency: USD
Taking everything into account, OI scores 3 out of 10 in our fundamental rating. OI was compared to 22 industry peers in the Containers & Packaging industry. OI may be in some trouble as it scores bad on both profitability and health. OI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OI was profitable.
In the past year OI had a positive cash flow from operations.
In multiple years OI reported negative net income over the last 5 years.
Each year in the past 5 years OI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OI (-2.21%) is worse than 86.36% of its industry peers.
OI's Return On Equity of -17.32% is on the low side compared to the rest of the industry. OI is outperformed by 81.82% of its industry peers.
OI has a Return On Invested Capital (5.63%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OI is in line with the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.21% | ||
| ROE | -17.32% | ||
| ROIC | 5.63% |
ROA(3y)1.39%
ROA(5y)1.73%
ROE(3y)8.33%
ROE(5y)25.9%
ROIC(3y)7.46%
ROIC(5y)6.8%
1.3 Margins
OI has a Operating Margin of 7.58%. This is comparable to the rest of the industry: OI outperforms 40.91% of its industry peers.
OI's Operating Margin has declined in the last couple of years.
OI has a Gross Margin of 15.68%. This is amonst the worse of the industry: OI underperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of OI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | N/A | ||
| GM | 15.68% |
OM growth 3Y-4.51%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.66%
GM growth 5Y-2%
2. Health
2.1 Basic Checks
OI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, OI has about the same amount of shares outstanding.
The number of shares outstanding for OI has been reduced compared to 5 years ago.
OI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that OI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.29, OI is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
The Debt to FCF ratio of OI is 102.29, which is on the high side as it means it would take OI, 102.29 years of fcf income to pay off all of its debts.
OI has a Debt to FCF ratio of 102.29. This is in the lower half of the industry: OI underperforms 63.64% of its industry peers.
OI has a Debt/Equity ratio of 4.41. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of OI (4.41) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.41 | ||
| Debt/FCF | 102.29 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.65
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.24 indicates that OI should not have too much problems paying its short term obligations.
The Current ratio of OI (1.24) is comparable to the rest of the industry.
OI has a Quick Ratio of 1.24. This is a bad value and indicates that OI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.73, OI is in line with its industry, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for OI have decreased strongly by -66.67% in the last year.
The earnings per share for OI have been decreasing by -18.61% on average. This is quite bad
OI shows a decrease in Revenue. In the last year, the revenue decreased by -5.29%.
Measured over the past years, OI shows a decrease in Revenue. The Revenue has been decreasing by -0.48% on average per year.
EPS 1Y (TTM)-66.67%
EPS 3Y-24.1%
EPS 5Y-18.61%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y0.9%
Revenue growth 5Y-0.48%
Sales Q2Q%-1.63%
3.2 Future
Based on estimates for the next years, OI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.32% on average per year.
The Revenue is expected to grow by 1.29% on average over the next years.
EPS Next Y76.36%
EPS Next 2Y53.35%
EPS Next 3Y42.42%
EPS Next 5Y32.32%
Revenue Next Year-2.02%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.49%
Revenue Next 5Y1.29%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.89, OI is valued on the expensive side.
OI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of OI to the average of the S&P500 Index (27.45), we can say OI is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.33, which indicates a very decent valuation of OI.
95.45% of the companies in the same industry are more expensive than OI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. OI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OI indicates a rather cheap valuation: OI is cheaper than 100.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as OI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.47 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
OI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OI's earnings are expected to grow with 42.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y53.35%
EPS Next 3Y42.42%
5. Dividend
5.1 Amount
OI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.67
+0.1 (+0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change0.34%
Ins Owners1.28%
Ins Owner Change11.72%
Market Cap2.42B
Analysts78.89
Price Target15.94 (1.72%)
Short Float %4.11%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.94%
Min EPS beat(2)33.39%
Max EPS beat(2)64.48%
EPS beat(4)2
Avg EPS beat(4)-25.95%
Min EPS beat(4)-200.22%
Max EPS beat(4)64.48%
EPS beat(8)6
Avg EPS beat(8)24.66%
EPS beat(12)10
Avg EPS beat(12)22.66%
EPS beat(16)14
Avg EPS beat(16)20.98%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-6.94%
Max Revenue beat(2)-2.55%
Revenue beat(4)0
Avg Revenue beat(4)-5.6%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-2.55%
Revenue beat(8)0
Avg Revenue beat(8)-4.74%
Revenue beat(12)2
Avg Revenue beat(12)-3.07%
Revenue beat(16)5
Avg Revenue beat(16)-1.85%
PT rev (1m)4.17%
PT rev (3m)4.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 8.33 | ||
| P/S | 0.37 | ||
| P/FCF | 49.47 | ||
| P/OCF | 4.12 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.09 |
EPS(TTM)0.75
EY4.79%
EPS(NY)1.88
Fwd EY12.01%
FCF(TTM)0.32
FCFY2.02%
OCF(TTM)3.8
OCFY24.26%
SpS42.05
BVpS7.2
TBVpS-2.87
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.21% | ||
| ROE | -17.32% | ||
| ROCE | 7.25% | ||
| ROIC | 5.63% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 7.89% | ||
| OM | 7.58% | ||
| PM (TTM) | N/A | ||
| GM | 15.68% | ||
| FCFM | 0.75% |
ROA(3y)1.39%
ROA(5y)1.73%
ROE(3y)8.33%
ROE(5y)25.9%
ROIC(3y)7.46%
ROIC(5y)6.8%
ROICexc(3y)8.45%
ROICexc(5y)7.63%
ROICexgc(3y)12.05%
ROICexgc(5y)11.18%
ROCE(3y)9.56%
ROCE(5y)8.69%
ROICexcg growth 3Y-5.11%
ROICexcg growth 5Y-3.18%
ROICexc growth 3Y-1.37%
ROICexc growth 5Y-1.27%
OM growth 3Y-4.51%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.66%
GM growth 5Y-2%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.41 | ||
| Debt/FCF | 102.29 | ||
| Debt/EBITDA | 5.05 | ||
| Cap/Depr | 112.53% | ||
| Cap/Sales | 8.29% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 60.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.29 |
F-Score6
WACC8.7%
ROIC/WACC0.65
Cap/Depr(3y)129.37%
Cap/Depr(5y)108.64%
Cap/Sales(3y)9%
Cap/Sales(5y)7.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.67%
EPS 3Y-24.1%
EPS 5Y-18.61%
EPS Q2Q%-11.11%
EPS Next Y76.36%
EPS Next 2Y53.35%
EPS Next 3Y42.42%
EPS Next 5Y32.32%
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y0.9%
Revenue growth 5Y-0.48%
Sales Q2Q%-1.63%
Revenue Next Year-2.02%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.49%
Revenue Next 5Y1.29%
EBIT growth 1Y-30.86%
EBIT growth 3Y-3.65%
EBIT growth 5Y-5.06%
EBIT Next Year102.1%
EBIT Next 3Y32.61%
EBIT Next 5Y18.05%
FCF growth 1Y109.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1629.41%
OCF growth 3Y-10.58%
OCF growth 5Y3.84%