Loading...

Owens Corning

NYSE:OC
Snowflake Description

Very undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OC
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composites; and residential, commercial, and industrial building materials worldwide. The last earnings update was 22 days ago. More info.


Add to Portfolio Compare Print
OC Share Price and Events
7 Day Returns
-2.5%
NYSE:OC
-2.7%
US Building
-3.9%
US Market
1 Year Returns
-25.3%
NYSE:OC
-0.6%
US Building
1.4%
US Market
OC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Owens Corning (OC) -2.5% -8.2% -10.5% -25.3% -2% 18.8%
US Building -2.7% 1.4% 4.2% -0.6% 10.8% 20.4%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • OC underperformed the Building industry which returned -0.6% over the past year.
  • OC underperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
OC
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Owens Corning to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Owens Corning.

NYSE:OC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:OC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.16 (1 + (1- 21%) (74.76%))
1.566
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.57
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.566 * 5.96%)
12.06%

Discounted Cash Flow Calculation for NYSE:OC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Owens Corning is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:OC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.06%)
2019 636.65 Analyst x4 568.11
2020 642.93 Analyst x6 511.95
2021 763.00 Analyst x1 542.15
2022 860.53 Est @ 12.78% 545.62
2023 944.58 Est @ 9.77% 534.44
2024 1,016.90 Est @ 7.66% 513.41
2025 1,079.72 Est @ 6.18% 486.44
2026 1,135.26 Est @ 5.14% 456.40
2027 1,185.44 Est @ 4.42% 425.27
2028 1,231.82 Est @ 3.91% 394.33
Present value of next 10 years cash flows $4,978.13
NYSE:OC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,231.82 × (1 + 2.73%) ÷ (12.06% – 2.73%)
$13,556.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,556.48 ÷ (1 + 12.06%)10
$4,339.71
NYSE:OC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,978.13 + $4,339.71
$9,317.84
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,317.84 / 108.57
$85.82
NYSE:OC Discount to Share Price
Calculation Result
Value per share (USD) From above. $85.82
Current discount Discount to share price of $48.96
= -1 x ($48.96 - $85.82) / $85.82
43%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Owens Corning is available for.
Intrinsic value
43%
Share price is $48.96 vs Future cash flow value of $85.82
Current Discount Checks
For Owens Corning to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Owens Corning's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Owens Corning's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Owens Corning's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Owens Corning's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:OC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.52
NYSE:OC Share Price ** NYSE (2019-05-15) in USD $48.96
United States of America Building Industry PE Ratio Median Figure of 30 Publicly-Listed Building Companies 18.94x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Owens Corning.

NYSE:OC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:OC Share Price ÷ EPS (both in USD)

= 48.96 ÷ 4.52

10.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Owens Corning is good value based on earnings compared to the US Building industry average.
  • Owens Corning is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Owens Corning's expected growth come at a high price?
Raw Data
NYSE:OC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
15.2%per year
United States of America Building Industry PEG Ratio Median Figure of 27 Publicly-Listed Building Companies 1.27x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:OC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.83x ÷ 15.2%

0.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Owens Corning is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Owens Corning's assets?
Raw Data
NYSE:OC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $39.24
NYSE:OC Share Price * NYSE (2019-05-15) in USD $48.96
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.24x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:OC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:OC Share Price ÷ Book Value per Share (both in USD)

= 48.96 ÷ 39.24

1.25x

* Primary Listing of Owens Corning.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Owens Corning is good value based on assets compared to the US Building industry average.
X
Value checks
We assess Owens Corning's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Owens Corning has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Owens Corning expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Owens Corning expected to grow at an attractive rate?
  • Owens Corning's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Owens Corning's earnings growth is expected to exceed the United States of America market average.
  • Owens Corning's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:OC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:OC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 15.2%
NYSE:OC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 3.1%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:OC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:OC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 7,581 1,228 707 2
2020-12-31 7,396 1,061 594 16
2019-12-31 7,151 1,022 499 17
NYSE:OC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,033 742 497
2018-12-31 7,057 803 545
2018-09-30 6,939 828 370
2018-06-30 6,824 930 305
2018-03-31 6,597 919 280
2017-12-31 6,384 1,016 289
2017-09-30 6,161 958 379
2017-06-30 5,976 1,009 395
2017-03-31 5,924 887 437
2016-12-31 5,677 943 393
2016-09-30 5,591 1,011 416
2016-06-30 5,520 962 416

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Owens Corning's earnings are expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
  • Owens Corning's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:OC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Owens Corning Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:OC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 6.01 6.01 6.01 1.00
2020-12-31 5.52 6.12 5.12 9.00
2019-12-31 4.55 4.72 4.31 8.00
NYSE:OC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.52
2018-12-31 4.94
2018-09-30 3.34
2018-06-30 2.75
2018-03-31 2.52
2017-12-31 2.59
2017-09-30 3.39
2017-06-30 3.50
2017-03-31 3.85
2016-12-31 3.44
2016-09-30 3.61
2016-06-30 3.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Owens Corning is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Owens Corning's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Owens Corning has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Owens Corning performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Owens Corning's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Owens Corning's year on year earnings growth rate has been positive over the past 5 years.
  • Owens Corning's 1-year earnings growth exceeds its 5-year average (77.5% vs 12.2%)
  • Owens Corning's earnings growth has exceeded the US Building industry average in the past year (77.5% vs 24.3%).
Earnings and Revenue History
Owens Corning's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Owens Corning Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:OC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,033.00 497.00 682.00 88.00
2018-12-31 7,057.00 545.00 680.00 89.00
2018-09-30 6,939.00 370.00 655.00 87.00
2018-06-30 6,824.00 305.00 685.00 88.00
2018-03-31 6,597.00 280.00 713.00 87.00
2017-12-31 6,384.00 289.00 674.00 85.00
2017-09-30 6,161.00 379.00 632.00 86.00
2017-06-30 5,976.00 395.00 592.00 84.00
2017-03-31 5,924.00 437.00 587.00 84.00
2016-12-31 5,677.00 393.00 576.00 82.00
2016-09-30 5,591.00 416.00 557.00 80.00
2016-06-30 5,520.00 416.00 547.00 78.00
2016-03-31 5,378.00 369.00 528.00 75.00
2015-12-31 5,350.00 330.00 525.00 73.00
2015-09-30 5,298.00 254.00 504.00 72.00
2015-06-30 5,233.00 194.00 484.00 72.00
2015-03-31 5,185.00 124.00 484.00 74.00
2014-12-31 5,260.00 226.00 487.00 76.00
2014-09-30 5,293.00 275.00 507.00 77.00
2014-06-30 5,231.00 274.00 525.00 78.00
2014-03-31 5,223.00 302.00 529.00 78.00
2013-12-31 5,295.00 204.00 530.00 77.00
2013-09-30 5,176.00 66.00 524.00 76.00
2013-06-30 5,132.00 59.00 511.00 77.00
2013-03-31 5,176.00 49.00 505.00 78.00
2012-12-31 5,172.00 -19.00 509.00 79.00
2012-09-30 5,209.00 87.00 510.00 79.00
2012-06-30 5,383.00 167.00 514.00 79.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Owens Corning has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Owens Corning used its assets less efficiently than the US Building industry average last year based on Return on Assets.
  • Owens Corning's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Owens Corning's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Owens Corning has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Owens Corning's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Owens Corning's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Owens Corning is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Owens Corning's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Owens Corning's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Owens Corning Company Filings, last reported 1 month ago.

NYSE:OC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,302.00 3,974.00 82.00
2018-12-31 4,324.00 3,387.00 78.00
2018-09-30 4,206.00 3,674.00 136.00
2018-06-30 4,167.00 3,641.00 149.00
2018-03-31 4,141.00 3,767.00 140.00
2017-12-31 4,204.00 2,410.00 246.00
2017-09-30 4,114.00 2,544.00 168.00
2017-06-30 4,015.00 2,689.00 199.00
2017-03-31 3,946.00 2,259.00 101.00
2016-12-31 3,889.00 2,102.00 112.00
2016-09-30 3,935.00 2,164.00 110.00
2016-06-30 3,905.00 2,278.00 67.00
2016-03-31 3,828.00 1,951.00 54.00
2015-12-31 3,779.00 1,871.00 96.00
2015-09-30 3,774.00 2,000.00 63.00
2015-06-30 3,748.00 2,177.00 80.00
2015-03-31 3,683.00 2,291.00 77.00
2014-12-31 3,730.00 2,009.00 67.00
2014-09-30 3,897.00 2,197.00 51.00
2014-06-30 3,911.00 2,292.00 81.00
2014-03-31 3,899.00 2,388.00 65.00
2013-12-31 3,830.00 2,031.00 57.00
2013-09-30 3,651.00 2,187.00 53.00
2013-06-30 3,629.00 2,274.00 73.00
2013-03-31 3,594.00 2,315.00 62.00
2012-12-31 3,575.00 2,085.00 55.00
2012-09-30 3,680.00 2,216.00 51.00
2012-06-30 3,651.00 2,237.00 54.00
  • Owens Corning's level of debt (92.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (61.2% vs 92.4% today).
  • Debt is not well covered by operating cash flow (18.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).
X
Financial health checks
We assess Owens Corning's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Owens Corning has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.8%
Current annual income from Owens Corning dividends. Estimated to be 1.84% next year.
If you bought $2,000 of Owens Corning shares you are expected to receive $36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Owens Corning's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Owens Corning's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:OC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:OC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.90 2.00
2020-12-31 0.93 6.00
2019-12-31 0.88 6.00
NYSE:OC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-07 0.880 1.754
2018-12-06 0.880 1.891
2018-09-20 0.840 1.662
2018-06-21 0.840 1.378
2018-02-01 0.840 1.134
2017-12-07 0.840 0.910
2017-09-21 0.800 0.980
2017-06-15 0.800 1.167
2017-02-03 0.800 1.318
2016-12-02 0.800 1.496
2016-09-16 0.720 1.401
2016-06-16 0.720 1.353
2016-02-10 0.720 1.518
2015-12-04 0.680 1.499
2015-09-17 0.680 1.506
2015-06-18 0.680 1.559
2015-04-22 0.680 1.684
2015-02-11 0.680 1.657
2014-12-05 0.640 1.733
2014-09-19 0.640 1.962
2014-06-12 0.640 1.762
2014-04-23 0.640 1.559
2014-02-12 0.640 1.477

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Owens Corning has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Owens Corning only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Owens Corning's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.9x coverage).
X
Income/ dividend checks
We assess Owens Corning's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Owens Corning afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Owens Corning has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Thaman
COMPENSATION $8,737,460
AGE 54
TENURE AS CEO 11.4 years
CEO Bio

Mr. Michael H. Thaman, also known as Mike, serves as Chairman and Chief Executive Officer of Owens Corning Canada LP. Mr. Thaman served as the Chief Executive Officer of Owens Corning since December 6, 2007 until April 18, 2019 and was its President since December 6, 2007 until 2018. Mr. Thaman serves as the Chief Executive Officer and President at Owens Corning Fabwel, LLC. joined Owens in 1992 and served as its Chief Financial Officer from 2000 to September 2007. Previously, he served as President of the Exterior Systems Business beginning in 1999 and President of the Engineered Pipe Systems Business beginning January 1997 to December 1998. Mr. Thaman served as Vice President at Mercer Management Consulting. He has been Executive Chairman of Owens Corning since April 18, 2019 and served as its Chairman of the Board since April 2002 until April 18, 2019 and has been its Director since January 2002. He serves as the Chairman of Owens Corning Fabwel, LLC. He serves as Chairman of the Policy Advisory Board of the Harvard Joint Center for Housing Studies of Harvard University. He has been a Director of The Sherwin-Williams Company since April 2017. He serves as a Member of the Board of Directors of Kohler Company. He serves as a Member of the Advisory Board of Marble Harbor Investment Counsel, LLC. He served as Director of Florida Power & Light Company. He served as Director of AGY Holding Corp., since April 2000. He served as Independent Director of NextEra Energy, Inc., since July 2003 to May 22, 2014 and served as its Lead Independent Director. He is a member of Business Roundtable, where he previously chaired the Energy Efficiency Task Force. Mr. Thaman earned a Bachelor's degree in Electrical Engineering and Computer Science from Princeton University in 1986.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year.
  • Mike's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Owens Corning management team in years:

6.8
Average Tenure
53
Average Age
  • The average tenure for the Owens Corning management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Thaman

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
54
TENURE
11.4 yrs

Brian Chambers

TITLE
CEO & Director
COMPENSATION
$3M
AGE
51
TENURE
0.1 yrs

Michael McMurray

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
53
TENURE
6.8 yrs

Dan Smith

TITLE
Senior Vice President of Organization & Administration
COMPENSATION
$3M
AGE
53
TENURE
4.5 yrs

Julian Francis

TITLE
President of Insulation Business
COMPENSATION
$3M
AGE
51
TENURE
4.6 yrs

Thierry Denis

TITLE
Vice President of Investor Relations

Ava Harter

TITLE
Senior VP
AGE
48
TENURE
4 yrs

Raymund Trost

TITLE
Vice President of CSB Europe and Managing Director of CSB Europe
TENURE
15.2 yrs

Frank O'Brien-Bernini

TITLE
Chief Sustainability Officer & VP
AGE
61
TENURE
18.3 yrs

William LeBaron

TITLE
Vice President and President of Owens Corning Construction Services
AGE
62
TENURE
12.7 yrs
Board of Directors Tenure

Average tenure and age of the Owens Corning board of directors in years:

6.2
Average Tenure
57.5
Average Age
  • The tenure for the Owens Corning board of directors is about average.
Board of Directors

Brian Chambers

TITLE
CEO & Director
COMPENSATION
$3M
AGE
51
TENURE
0.1 yrs

James Ferguson

TITLE
Director
COMPENSATION
$255K
AGE
63
TENURE
8.3 yrs

Mike Thaman

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
54
TENURE
17.1 yrs

John Williams

TITLE
Lead Independent Director
COMPENSATION
$275K
AGE
64
TENURE
4.1 yrs

Suzanne Nimocks

TITLE
Director
COMPENSATION
$250K
AGE
59
TENURE
6.7 yrs

Ed Lonergan

TITLE
Director
COMPENSATION
$250K
AGE
58
TENURE
5.7 yrs

Ralph Hake

TITLE
Independent Director
COMPENSATION
$235K
AGE
69
TENURE
12.7 yrs

W. Morris

TITLE
Director
COMPENSATION
$235K
AGE
57
TENURE
12.3 yrs

Cesar Conde

TITLE
Director
COMPENSATION
$235K
AGE
44
TENURE
4.8 yrs

Maryann Mannen

TITLE
Director
COMPENSATION
$235K
AGE
55
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • Owens Corning insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. May 19 Sell Gunner Smith Individual 07. May 19 07. May 19 -7,900 $51.79 $-409,141
01. May 19 Sell Julian Francis Individual 30. Apr 19 30. Apr 19 -600 $51.51 $-30,903
18. Mar 19 Sell Marcio Sandri Individual 15. Mar 19 15. Mar 19 -3,700 $47.01 $-173,937
26. Feb 19 Sell Daniel Smith Individual 22. Feb 19 22. Feb 19 -18,681 $50.76 $-948,071
27. Aug 18 Sell W. Morris Individual 23. Aug 18 23. Aug 18 -1,514 $58.47 $-88,524
X
Management checks
We assess Owens Corning's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Owens Corning has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Owens Corning (NYSE:OC) Trading At A 44% Discount?

Today we will run through one way of estimating the intrinsic value of Owens Corning (NYSE:OC) by taking the expected future cash flows and discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $636.65 $642.93 $763.00 $860.53 $944.58 $1.02k $1.08k $1.14k $1.19k $1.23k Growth Rate Estimate Source Analyst x4 Analyst x6 Analyst x1 Est @ 12.78% Est @ 9.77% Est @ 7.66% Est @ 6.18% Est @ 5.14% Est @ 4.42% Est @ 3.91% Present Value ($, Millions) Discounted @ 11.99% $568.48 $512.62 $543.21 $547.05 $536.18 $515.42 $488.66 $458.78 $427.76 $396.91 Present Value of 10-year Cash Flow (PVCF)= $5.00b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NYSE:OC Intrinsic value, May 14th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Why Dividend Hunters Love Owens Corning (NYSE:OC)

Today we'll take a closer look at Owens Corning (NYSE:OC) from a dividend investor's perspective. Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth.. … With a 1.7% yield and a five-year payment history, investors probably think Owens Corning looks like a reliable dividend stock.! … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Does Owens Corning's (NYSE:OC) P/E Ratio Signal A Buying Opportunity?

We'll look at Owens Corning's (NYSE:OC) P/E ratio and reflect on what it tells us about the company's share price. … Looking at earnings over the last twelve months, Owens Corning has a P/E ratio of 11.26. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Those Who Purchased Owens Corning (NYSE:OC) Shares A Year Ago Have A 36% Loss To Show For It

While not a mind-blowing move, it is good to see that the Owens Corning (NYSE:OC) share price has gained 13% in the last three months. … But that is minimal compensation for the share price under-performance over the last year. … Even though the Owens Corning share price is down over the year, its EPS actually improved.

Simply Wall St -

Is Owens Corning's (NYSE:OC) 13% ROE Strong Compared To Its Industry?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Owens Corning has a return on equity of 13% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Investigate Owens Corning (NYSE:OC) At US$47.12?

saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Owens Corning’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Does Owens Corning's (NYSE:OC) CEO Pay Reflect Performance?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Mike Thaman's Compensation Compare With Similar Sized Companies. … Our data indicates that Owens Corning is worth US$5.2b, and total annual CEO compensation is US$10m.

Simply Wall St -

What Should Investors Know About Owens Corning's (NYSE:OC) Long Term Outlook?

Owens Corning's (NYSE:OC) most recent earnings announcement in December 2018a … revealed … company

Simply Wall St -

Only 4 Days Left To Cash In On Owens Corning (NYSE:OC) Dividend

On the 02 April 2019, Owens Corning (NYSE:OC) will be paying shareholders an upcoming dividend amount of US$0.22 per share. … Below, I will explain how holding Owens Corning can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

Is Owens Corning's (NYSE:OC) Future Growth Already Accounted For In Today's Price?

Looking at Owens Corning’s (NYSE:OC) fundamentals some investors are wondering if its last closing price of $52.61 represents a good value for money for this high growth stock. … What can we expect from Owens Corning in the future. … Investors in Owens Corning have been patiently waiting for the uptick in earnings.

Simply Wall St -

Company Info

Description

Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composites; and residential, commercial, and industrial building materials worldwide. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, non-wovens, and other specialized products. Its products are used in pipe, roofing shingles, sporting goods, consumer electronics, telecommunications cables, boats, aviation, defense, automotive, industrial containers, and wind-energy applications in the building and construction, transportation, consumer, industrial, and power and energy markets. The Insulation segment manufactures and sells fiberglass insulation into residential, commercial, industrial, and other markets for thermal and acoustical applications; and manufactures and sells glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, cellular glass insulation, and foam insulation used in above- and below-grade construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Roofing segment manufactures and sells residential roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials. This segment sells its products through distributors, home centers, lumberyards, retailers, and contractors, as well as to roofing contractors for built-up roofing asphalt systems and to manufacturers in automotive, chemical, rubber, and construction industries. Owens Corning was founded in 1938 and is headquartered in Toledo, Ohio.

Details
Name: Owens Corning
OC
Exchange: NYSE
Founded: 1938
$5,315,564,384
108,569,534
Website: http://www.owenscorning.com
Address: Owens Corning
One Owens Corning Parkway,
Toledo,
Ohio, 43659,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE OC Common Stock New York Stock Exchange US USD 09. Oct 2006
DB O5Q Common Stock Deutsche Boerse AG DE EUR 09. Oct 2006
Number of employees
Current staff
Staff numbers
20,000
Owens Corning employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:53
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.