Owens Corning (NYSE:OC) - Share price, News & Analysis

Q: What is the Fair Price of OC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

OC ($80.89) is trading below our estimate of [[fair value]] ($398.17)

OC fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	4/6
Dividends	3/6

OC Stock Overview

Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally.

Rewards

Trading at 79.7% below our estimate of its fair value

Earnings have grown 17.5% per year over the past 5 years

Trading at good value vs. peer average Price-To-Earnings ratio

Trading at good value vs. industry average Price-To-Earnings ratio

Trading below our calculated fair Price-To-Earnings ratio

Risk Analysis

Earnings are forecast to decline by an average of 3.4% per year for the next 3 years

Has a high level of debt

Unstable dividend track record

Significant insider selling over the past 3 months

Owens Corning Competitors

A. O. Smith

NYSE:AOS

US$7.8b

Fortune Brands Home & Security

NYSE:FBHS

US$7.3b

Lennox International

NYSE:LII

US$8.2b

Allegion

NYSE:ALLE

US$8.1b

Price History & Performance

Summary of all time highs, changes and price drops for Owens Corning
Historical stock prices
Current Share Price	US$80.89
52 Week High	US$101.12
52 Week Low	US$72.97
Beta	1.53
1 Month Change	-3.82%
3 Month Change	8.86%
1 Year Change	-8.21%
3 Year Change	33.75%
5 Year Change	2.26%
Change since IPO	202.39%

Recent News & Updates

Sep 15

Owens Corning declares $0.35 dividend

Owens Corning (NYSE:OC) declares $0.35/share quarterly dividend, in line with previous. Forward yield 1.67% Payable Nov. 3; for shareholders of record Oct. 17; ex-div Oct. 14. See OC Dividend Scorecard, Yield Chart, & Dividend Growth.

Sep 13

Owens Corning (NYSE:OC) Seems To Use Debt Rather Sparingly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 30

We Ran A Stock Scan For Earnings Growth And Owens Corning (NYSE:OC) Passed With Ease

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

	OC	US Building	US Market
7D	2.1%	-1.6%	-2.0%
1Y	-8.2%	-23.2%	-20.3%

Return vs Industry: OC exceeded the US Building industry which returned -25.6% over the past year.

Return vs Market: OC exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is OC's price volatile compared to industry and market?
OC volatility
OC Average Weekly Movement	5.0%
Building Industry Average Movement	5.2%
Market Average Movement	6.9%
10% most volatile stocks in US Market	15.8%
10% least volatile stocks in US Market	2.8%

Stable Share Price: OC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1938	20,000	Brian Chambers	https://www.owenscorning.com

Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and other specialized products.

Owens Corning Fundamentals Summary

How do Owens Corning's earnings and revenue compare to its market cap?
OC fundamental statistics
Market Cap	US$7.78b
Earnings (TTM)	US$1.13b
Revenue (TTM)	US$9.29b

6.9x

P/E Ratio

0.8x

P/S Ratio

Is OC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OC income statement (TTM)
Revenue	US$9.29b
Cost of Revenue	US$6.76b
Gross Profit	US$2.53b
Other Expenses	US$1.40b
Earnings	US$1.13b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	11.78
Gross Margin	27.27%
Net Profit Margin	12.21%
Debt/Equity Ratio	62.9%

How did OC perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

12%

Payout Ratio

Does OC pay a reliable dividends?

See OC dividend history and benchmarks

When do you need to buy OC by to receive an upcoming dividend?
Owens Corning dividend dates
Ex Dividend Date	Oct 14 2022
Dividend Pay Date	Nov 03 2022
Days until Ex dividend	15 days
Days until Dividend pay date	35 days

Does OC pay a reliable dividends?

See OC dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is OC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for OC. This is calculated by dividing OC's market cap by their current preferred multiple.
What is OC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$7.78b

OC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	4.8x
PEG Ratio	-2x

Price to Earnings Ratio vs Peers

How does OC's PE Ratio compare to its peers?

OC PE Ratio vs Peers

The above table shows the PE ratio for OC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.9x
AOS A. O. Smith	15.1x	4.7%	US$7.8b
FBHS Fortune Brands Home & Security	9.7x	4.5%	US$7.3b
LII Lennox International	17.4x	9.1%	US$8.2b
ALLE Allegion	17.4x	13.2%	US$8.1b
OC Owens Corning	6.9x	-3.4%	US$7.8b

Price-To-Earnings vs Peers: OC is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (14.9x).

Price to Earnings Ratio vs Industry

How does OC's PE Ratio compare vs other companies in the US Building Industry?

Price-To-Earnings vs Industry: OC is good value based on its Price-To-Earnings Ratio (6.9x) compared to the US Building industry average (14.4x)

Price to Earnings Ratio vs Fair Ratio

What is OC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.9x
Fair PE Ratio	15.8x

Price-To-Earnings vs Fair Ratio: OC is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).

Share Price vs Fair Value

What is the Fair Price of OC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OC ($80.89) is trading below our estimate of fair value ($398.17)

Significantly Below Fair Value: OC is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Owens Corning forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-3.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OC's earnings are forecast to decline over the next 3 years (-3.4% per year).

Earnings vs Market: OC's earnings are forecast to decline over the next 3 years (-3.4% per year).

High Growth Earnings: OC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OC's revenue (1.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OC's revenue (1.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: OC's Return on Equity is forecast to be high in 3 years time (21.5%)

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Past Performance

How has Owens Corning performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OC has high quality earnings.

Growing Profit Margin: OC's current net profit margins (12.2%) are higher than last year (11.9%).

Past Earnings Growth Analysis

Earnings Trend: OC's earnings have grown by 17.5% per year over the past 5 years.

Accelerating Growth: OC's earnings growth over the past year (19.9%) exceeds its 5-year average (17.5% per year).

Earnings vs Industry: OC earnings growth over the past year (19.9%) underperformed the Building industry 32.2%.

Return on Equity

High ROE: OC's Return on Equity (24.8%) is considered high.

Discover strong past performing companies

Financial Health

How is Owens Corning's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: OC's short term assets ($3.7B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: OC's short term assets ($3.7B) do not cover its long term liabilities ($4.0B).

Debt to Equity History and Analysis

Debt Level: OC's net debt to equity ratio (44.6%) is considered high.

Reducing Debt: OC's debt to equity ratio has reduced from 66.9% to 62.9% over the past 5 years.

Debt Coverage: OC's debt is well covered by operating cash flow (49.4%).

Interest Coverage: OC's interest payments on its debt are well covered by EBIT (14.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.73%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Owens Corning Dividend Yield vs Market

How does Owens Corning dividend yield compare to the market?
Segment	Dividend Yield
Company (Owens Corning)	1.7%
Market Bottom 25% (US)	1.6%
Market Top 25% (US)	4.6%
Industry Average (Building)	1.7%
Analyst forecast in 3 Years (Owens Corning)	1.8%

Notable Dividend: OC's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: OC's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (4.69%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OC has been paying a dividend for less than 10 years.

Growing Dividend: OC's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.6%), OC's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (13.8%), OC's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure

CEO

Brian Chambers (55 yo)

3.42yrs

Tenure

US$9,782,143

Compensation

Mr. Brian D. Chambers has been Chief Executive Officer and Director of Owens Corning since April 18, 2019 and serves as its President since August 1, 2018. He serves as Chair at Owens Corning since April 2...

CEO Compensation Analysis

Brian Chambers's Compensation vs Owens Corning Earnings

How has Brian Chambers's remuneration changed compared to Owens Corning's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	US$1b
Mar 31 2022	n/a	n/a	US$1b
Dec 31 2021	US$10m	US$1m	US$995m
Sep 30 2021	n/a	n/a	US$1b
Jun 30 2021	n/a	n/a	US$946m
Mar 31 2021	n/a	n/a	US$744m
Dec 31 2020	US$8m	US$1m	-US$383m
Sep 30 2020	n/a	n/a	-US$542m
Jun 30 2020	n/a	n/a	-US$598m
Mar 31 2020	n/a	n/a	-US$556m
Dec 31 2019	US$6m	US$918k	US$405m
Sep 30 2019	n/a	n/a	US$503m
Jun 30 2019	n/a	n/a	US$514m
Mar 31 2019	n/a	n/a	US$497m
Dec 31 2018	US$3m	US$588k	US$545m
Sep 30 2018	n/a	n/a	US$370m
Jun 30 2018	n/a	n/a	US$305m
Mar 31 2018	n/a	n/a	US$280m
Dec 31 2017	US$2m	US$493k	US$289m
Sep 30 2017	n/a	n/a	US$379m
Jun 30 2017	n/a	n/a	US$395m
Mar 31 2017	n/a	n/a	US$437m
Dec 31 2016	US$2m	US$450k	US$393m
Sep 30 2016	n/a	n/a	US$416m
Jun 30 2016	n/a	n/a	US$416m
Mar 31 2016	n/a	n/a	US$369m
Dec 31 2015	US$2m	US$400k	US$330m

Compensation vs Market: Brian's total compensation ($USD9.78M) is about average for companies of similar size in the US market ($USD8.63M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: OC's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: OC's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: OC insiders have only sold shares in the past 3 months.

Recent Insider Transactions

NYSE:OC Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
29 Aug 22	SellUS$33,688	W. Morris	Individual	401	US$84.01
29 Jul 22	SellUS$178,346	Kelly Schmidt	Individual	1,940	US$91.93
06 Dec 21	SellUS$781,601	Gunner Smith	Individual	8,500	US$91.95

Ownership Breakdown

What is the ownership structure of OC?
Owner Type	Number of Shares	Ownership Percentage
State or Government	40,991	0.04%
Individual Insiders	721,081	0.7%
Institutions	95,954,623	99.2%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 61.49% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
12.43%	BlackRock, Inc.	11,964,475	$967.8m	2.34%	0.02%
10.07%	The Vanguard Group, Inc.	9,693,797	$784.1m	-0.42%	0.02%
4.31%	State Street Global Advisors, Inc.	4,146,517	$335.4m	-6.82%	0.02%
3.53%	Davis Selected Advisers LP	3,395,504	$274.7m	409.61%	1.53%
3.1%	Victory Capital Management Inc.	2,986,184	$241.6m	-4.01%	0.26%
2.95%	AllianceBernstein L.P.	2,838,538	$229.6m	1.64%	0.09%
2.36%	Dimensional Fund Advisors LP	2,270,876	$183.7m	1.25%	0.04%
2.12%	FMR LLC	2,038,015	$164.9m	-5.03%	0.01%
2.08%	Nordea Investment Management AB	1,999,081	$161.7m	-47.81%	0.14%
1.94%	AQR Capital Management, LLC	1,863,471	$150.7m	26.23%	0.32%
1.93%	LSV Asset Management	1,860,795	$150.5m	4.57%	0.29%
1.42%	Geode Capital Management, LLC	1,367,742	$110.6m	-3.53%	0.01%
1.37%	Deutsche Asset & Wealth Management	1,317,891	$106.6m	22.88%	0.04%
1.24%	BNY Mellon Asset Management	1,192,378	$96.5m	-2.9%	0.02%
1.21%	Managed Account Advisors LLC	1,162,429	$94.0m	-2.08%	0.03%
1.18%	Northern Trust Global Investments	1,137,022	$92.0m	6.87%	0.02%
1.14%	Amundi Asset Management	1,093,520	$88.5m	13.24%	0.03%
1.09%	Norges Bank Investment Management	1,050,880	$85.0m	0%	0.01%
0.93%	PGGM	892,190	$72.2m	0%	0.4%
0.92%	Morgan Stanley, Investment Banking and Brokerage Investments	888,012	$71.8m	79.04%	0.01%
0.87%	Schroder Investment Management Limited	841,029	$68.0m	-33.29%	0.05%
0.86%	Eurizon Capital SGR S.p.A.	825,454	$66.8m	-0.8%	0.27%
0.84%	Citadel Advisors LLC	809,867	$65.5m	517.71%	0.1%
0.82%	Numeric Investors LLC	786,864	$63.6m	-11.71%	0.37%
0.78%	Candriam Luxembourg S.A.	750,405	$60.7m	0.42%	0.21%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
OC	NYSE (New York Stock Exchange)	Yes	Common Stock	US	USD	Oct 2006
O5Q	DB (Deutsche Boerse AG)	Yes	Common Stock	DE	EUR	Oct 2006

Data	Last Updated (UTC time)
Company Analysis	2022/09/28 00:00
End of Day Share Price	2022/09/28 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31