O-I GLASS INC (OI) Stock Fundamental Analysis
NYSE:OI - New York Stock Exchange, Inc. - US67098H1041 - Common Stock - Currency: USD
OI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. Both the profitability and financial health of OI have multiple concerns. OI has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
OI had a positive operating cash flow in each of the past 5 years.
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.
The Average Return On Invested Capital over the past 3 years for OI is in line with the industry average of 7.52%.
| 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
With a Operating Margin value of 7.58%, OI perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
In the last couple of years the Operating Margin of OI has declined.
With a Gross Margin value of 15.68%, OI is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
OI's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for OI remains at a similar level compared to 1 year ago.
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 1.26, we must say that OI is in the distress zone and has some risk of bankruptcy.
OI has a worse Altman-Z score (1.26) than 72.73% of its industry peers.
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.
The Debt to FCF ratio of OI (102.29) is worse than 63.64% of its industry peers.
A Debt/Equity ratio of 4.41 is on the high side and indicates that OI has dependencies on debt financing.
With a Debt to Equity ratio value of 4.41, OI is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.41 | ||
| Debt/FCF | 102.29 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.71
WACC7.92%
2.3 Liquidity
OI has a Current Ratio of 1.24. This is a normal value and indicates that OI is financially healthy and should not expect problems in meeting 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.
OI has a Quick ratio (0.73) which is comparable to the rest of the 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
The Revenue has decreased by -5.29% in the past year.
The Revenue has been decreasing by -0.48% on average over the past years.
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
OI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.98% yearly.
OI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y76.75%
EPS Next 2Y53.53%
EPS Next 3Y42.83%
EPS Next 5Y31.98%
Revenue Next Year-2.02%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.49%
Revenue Next 5Y1.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.39, the valuation of OI can be described as rather expensive.
OI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.46, OI is valued a bit cheaper.
OI is valuated cheaply with a Price/Forward Earnings ratio of 6.92.
OI's Price/Forward Earnings ratio is rather cheap when compared to the industry. OI is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, OI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
OI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.16 | ||
| EV/EBITDA | 6.65 |
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 42.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y53.53%
EPS Next 3Y42.83%
5. Dividend
5.1 Amount
No dividends for OI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.04
+0.09 (+0.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners100.62%
Inst Owner Change0.34%
Ins Owners1.04%
Ins Owner Change11.72%
Market Cap2.02B
Analysts78.89
Price Target15.3 (17.33%)
Short Float %3.35%
Short Ratio3.56
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)4.65%
PT rev (3m)0.75%
EPS NQ rev (1m)4.37%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)5.83%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 6.92 | ||
| P/S | 0.31 | ||
| P/FCF | 41.16 | ||
| P/OCF | 3.43 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.65 |
EPS(TTM)0.75
EY5.75%
EPS(NY)1.89
Fwd EY14.46%
FCF(TTM)0.32
FCFY2.43%
OCF(TTM)3.8
OCFY29.15%
SpS42.05
BVpS7.2
TBVpS-2.87
PEG (NY)0.23
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 | 1.26 |
F-Score6
WACC7.92%
ROIC/WACC0.71
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 Y76.75%
EPS Next 2Y53.53%
EPS Next 3Y42.83%
EPS Next 5Y31.98%
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 5Y1.73%
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%