Norbord Inc. manufactures and sells wood-based panels for retail chains, contractor supply yards, and industrial manufacturers primarily in North America and Europe.
Reasonable growth potential and slightly overvalued.
Share Price & News
How has Norbord's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: OSB's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: OSB underperformed the Canadian Forestry industry which returned -55.9% over the past year.
Return vs Market: OSB underperformed the Canadian Market which returned -24.8% over the past year.
Price Volatility Vs. Market
How volatile is Norbord's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StHave Insiders Been Buying Norbord Inc. (TSE:OSB) Shares?
1 month ago | Simply Wall StUpdate: Norbord (TSE:OSB) Stock Gained 40% In The Last Five Years
1 month ago | Simply Wall StDoes Market Volatility Impact Norbord Inc.'s (TSE:OSB) Share Price?
Is Norbord undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OSB (CA$14.64) is trading below our estimate of fair value (CA$48.24)
Significantly Below Fair Value: OSB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OSB is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.
PE vs Market: OSB is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate OSB's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: OSB is overvalued based on its PB Ratio (1.2x) compared to the CA Forestry industry average (0.6x).
How is Norbord forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OSB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).
Earnings vs Market: OSB is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: OSB's is expected to become profitable in the next 3 years.
Revenue vs Market: OSB's revenue (7.1% per year) is forecast to grow faster than the Canadian market (3.4% per year).
High Growth Revenue: OSB's revenue (7.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OSB's Return on Equity is forecast to be low in 3 years time (18.3%).
How has Norbord performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OSB is currently unprofitable.
Growing Profit Margin: OSB is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: OSB is unprofitable, but has reduced losses over the past 5 years at a rate of 32.4% per year.
Accelerating Growth: Unable to compare OSB's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: OSB is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (4.5%).
Return on Equity
High ROE: OSB has a negative Return on Equity (-5.97%), as it is currently unprofitable.
How is Norbord's financial position?
Financial Position Analysis
Short Term Liabilities: OSB's short term assets ($462.0M) exceed its short term liabilities ($260.0M).
Long Term Liabilities: OSB's short term assets ($462.0M) do not cover its long term liabilities ($957.0M).
Debt to Equity History and Analysis
Debt Level: OSB's debt to equity ratio (103%) is considered high.
Reducing Debt: OSB's debt to equity ratio has reduced from 113.7% to 103% over the past 5 years.
Inventory Level: OSB has a high level of physical assets or inventory.
Debt Coverage by Assets: OSB's debt is not covered by short term assets (assets are 0.6x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: OSB has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: OSB has been profitable on average in the past, therefore cash runway is not a concern.
What is Norbord's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OSB's dividend (5.31%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).
High Dividend: OSB's dividend (5.31%) is low compared to the top 25% of dividend payers in the Canadian market (8.52%).
Stability and Growth of Payments
Stable Dividend: OSB has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: OSB has only been paying a dividend for 7 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: OSB is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: OSB's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Peter Wijnbergen (57yo)
Mr. Peter C. Wijnbergen has been the Chief Executive Officer and President of Norbord, Inc. since January 1, 2014. Mr. Wijnbergen served as Chief Operating Officer and Senior Vice President of Norbord, Inc ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD949.31K) is below average for companies of similar size in the Canadian market ($USD1.69M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
|Senior VP & CFO||12.17yrs||US$757.60k||0.033% $399.6k|
|Senior Vice President of Sales||1.33yrs||US$549.20k||0.0025% $30.2k|
|Senior Vice President of North American Operations||2.17yrs||US$698.85k||0.021% $254.1k|
|Senior Vice President of Europe||2yrs||US$642.19k||0.0086% $102.5k|
|Vice President of Technology & Engineering Services||no data||no data||no data|
|Vice President of Investor Relations & Corporate Development||no data||no data||no data|
|General Counsel & Corporate Secretary||no data||no data||no data|
|Vice President of Human Resources & Environment||0.25yr||no data||0.0011% $13.7k|
|Assistant Corporate Secretary||10.83yrs||no data||no data|
Experienced Management: OSB's management team is considered experienced (2.2 years average tenure).
|Lead Independent Director||4.92yrs||US$125.00k||0.12% $1.4m|
|Independent Director||5.25yrs||US$110.00k||0.00077% $9.2k|
|Non-Independent Chairman||no data||US$175.00k||no data|
|Independent Director||25.25yrs||US$130.00k||0.0013% $16.0k|
|Non-Independent Director||0.92yr||US$60.00k||no data|
|Independent Director||1.92yrs||US$110.00k||no data|
Experienced Board: OSB's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: OSB insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Norbord Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Norbord Inc.
- Ticker: OSB
- Exchange: TSX
- Founded: 1987
- Industry: Forest Products
- Sector: Materials
- Market Cap: CA$1.194b
- Shares outstanding: 81.53m
- Website: https://www.norbord.com
Number of Employees
- Norbord Inc.
- 1 Toronto Street
- Suite 600
- M5C 2W4
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OSB||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Jul 1987|
|QXP1||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jul 1987|
|OSB||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Jul 1987|
Norbord Inc. manufactures and sells wood-based panels for retail chains, contractor supply yards, and industrial manufacturers primarily in North America and Europe. The company offers oriented strand boards for use in sheathing, flooring, and roofing in home construction applications; particleboards that are used in flooring and other construction applications; and medium density fiberboards for use in cabinet doors, moldings, and interior wall paneling applications, as well as related value-added products for use in the construction of new homes, and renovation and repair of existing structures. It markets its products under the Durastrand pointSIX, Pinnacle, Stabledge, TruFlor pointSIX and TruFlor, Rimboard, SteadiTred, QuakeZone, Tallwall, Trubord and Windstorm, SolarBord, TruDeck, StableDec, SterlingOSB, Caberwood MDF, Conti, and Caberboard brand names. The company was formerly known as Nexfor Inc. and changed its name to Norbord Inc. in June 2004. Norbord Inc. was founded in 1987 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/05 04:01|
|End of Day Share Price||2020/04/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.