DB:OIL

Stock Analysis Report

Executive Summary

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in Americas, Europe, and Asia Pacific.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

Risks

  • Owens-Illinois has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Owens-Illinois's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.0%

DB:OIL

-0.4%

DE Packaging

-0.7%

DE Market


1 Year Return

-36.7%

DB:OIL

-11.8%

DE Packaging

-10.8%

DE Market

OIL underperformed the Packaging industry which returned -11% over the past year.

OIL underperformed the Market in Germany which returned -10% over the past year.


Share holder returns

OILIndustryMarket
7 Day-4.0%-0.4%-0.7%
30 Day-35.7%-2.6%-3.9%
90 Day-37.1%-0.9%-4.3%
1 Year-36.3%-36.7%-9.2%-11.8%-8.0%-10.8%
3 Year-39.5%-39.9%18.0%6.6%9.8%0.3%
5 Year-58.5%-58.7%80.6%50.2%24.0%6.8%

Price Volatility Vs. Market

How volatile is Owens-Illinois's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Owens-Illinois undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Owens-Illinois's share price is below the future cash flow value, and at a moderate discount (> 20%).

Owens-Illinois's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Owens-Illinois is good value based on earnings compared to the Europe Packaging industry average.

Owens-Illinois is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Owens-Illinois is good value based on expected growth next year.


Price Based on Value of Assets

Owens-Illinois is overvalued based on assets compared to the Europe Packaging industry average.


Next Steps

Future Growth

How is Owens-Illinois expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Owens-Illinois's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

Owens-Illinois's earnings are expected to grow significantly at over 20% yearly.

Owens-Illinois's revenue growth is positive but not above the Germany market average.

Owens-Illinois's earnings growth is expected to exceed the Germany market average.

Owens-Illinois's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Owens-Illinois is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Owens-Illinois performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Owens-Illinois's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Owens-Illinois's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Owens-Illinois's 1-year earnings growth is negative, it can't be compared to the Europe Packaging industry average.


Return on Equity

Owens-Illinois has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Owens-Illinois used its assets less efficiently than the Europe Packaging industry average last year based on Return on Assets.


Return on Capital Employed

Owens-Illinois's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Owens-Illinois's financial position?


Financial Position Analysis

Owens-Illinois is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Owens-Illinois's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Owens-Illinois's level of debt (577.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (189.8% vs 577.1% today).

Debt is not well covered by operating cash flow (4.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Owens-Illinois's current dividend yield, its reliability and sustainability?

1.92%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Owens-Illinois before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Owens-Illinois's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.52%).

Owens-Illinois's dividend is below the markets top 25% of dividend payers in Germany (4.2%).

It is too early to tell whether Owens-Illinois has stable dividend payments.

Owens-Illinois only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (14.1x coverage).


Next Steps

Management

What is the CEO of Owens-Illinois's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Andres Lopez (56yo)

3.6yrs

Tenure

US$7,500,959

Compensation

Mr. Andres Alberto Lopez serves as the Chairman of the Board and Chief Executive Officer of Owens Illinois Group Inc. Mr. Lopez has been the Chief Executive Officer and President of Owens-Illinois, Inc. si ...


CEO Compensation Analysis

Andres's remuneration is higher than average for companies of similar size in Germany.

Andres's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

51yo

Average Age

The tenure for the Owens-Illinois management team is about average.


Board Age and Tenure

5.1yrs

Average Tenure

66yo

Average Age

The tenure for the Owens-Illinois board of directors is about average.


Insider Trading

More shares have been bought than sold by Owens-Illinois individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$109,14206 Aug 19
Carol Dudley-Williams
EntityIndividual
Shares10,000
Max PriceUS$10.91
BuyUS$54,31206 Aug 19
Peter Hellman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$10.86
SellUS$790,27611 Mar 19
Moyano Currarino
EntityIndividual
Role
Chief Technology Officer
Senior VP and Chief Technology & Supply Chain Officer
Shares45,161
Max PriceUS$17.90
SellUS$583,22311 Mar 19
Timothy Connors
EntityIndividual
Shares33,420
Max PriceUS$17.59
SellUS$22,480,42820 Dec 18
Atlantic Investment Management, Inc.
EntityCompany
Shares1,385,902
Max PriceUS$16.22
BuyUS$9,508,02020 Dec 18
Atlantic Investment Management, Inc.
EntityCompany
Shares620,100
Max PriceUS$15.33
SellUS$13,043,72031 Oct 18
Atlantic Investment Management, Inc.
EntityCompany
Shares788,550
Max PriceUS$16.75
BuyUS$2,941,72614 Sep 18
Atlantic Investment Management, Inc.
EntityCompany
Shares190,974
Max PriceUS$15.50
SellUS$3,186,65414 Sep 18
Atlantic Investment Management, Inc.
EntityCompany
Shares200,559
Max PriceUS$16.14

Ownership Breakdown


Management Team

  • John Haudrich (51yo)

    Senior VP & CFO

    • Tenure: 0.3yrs
    • Compensation: US$873.41k
  • Andres Lopez (56yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$7.50m
  • John Reynolds

    Vice President of Global Accounting

    • Tenure: 4.5yrs
  • Vitaliano Torno (60yo)

    President of O-I Europe

    • Tenure: 3.6yrs
    • Compensation: US$1.71m
  • Moyano Currarino (42yo)

    Senior VP and Chief Technology & Supply Chain Officer

    • Tenure: 7.4yrs
  • Dave Johnson

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Kristin Kelley

    Vice President of Global & Corporate Communications

    • Tenure: 0.0yrs
  • Miguel Alvarez (54yo)

    President of O-I North America

    • Tenure: 5.6yrs
    • Compensation: US$1.58m
  • Mary Wilkinson (46yo)

    Senior VP

    • Tenure: 2.6yrs
  • Arnaud Aujouannet (49yo)

    Senior VP and Chief Sales & Marketing Officer

    • Tenure: 1.8yrs

Board Members

  • Dennis Williams (73yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$237.50k
  • Stasia Kelly (70yo)

    Independent Director

    • Tenure: 17.6yrs
    • Compensation: US$237.50k
  • Alan Murray (65yo)

    Independent Non Executive Director

    • Tenure: 4.3yrs
    • Compensation: US$253.50k
  • Joe Rupp (69yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$294.47k
  • Peter Hellman (69yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$235.50k
  • Hari Nair (59yo)

    Independent Director

    • Tenure: 6.0yrs
    • Compensation: US$252.50k
  • Hugh Roberts (67yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$229.50k
  • Gordon Hardie (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$227.50k
  • Andres Lopez (56yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$7.50m
  • Carol Williams (61yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$369.50k

Company Information

Owens-Illinois, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Owens-Illinois, Inc.
  • Ticker: OIL
  • Exchange: DB
  • Founded: 1903
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: US$1.668b
  • Listing Market Cap: US$1.504b
  • Shares outstanding: 155.46m
  • Website: https://www.o-i.com

Number of Employees


Location

  • Owens-Illinois, Inc.
  • One Michael Owens Way
  • Perrysburg
  • Ohio
  • 43551
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OINYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1991
OILDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1991

Biography

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in Americas, Europe, and Asia Pacific. It produces glass containers for  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 21:29
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.