NYSE:OC

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Good value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

OC

1.4%

US Building

1.3%

US Market


1 Year Return

21.4%

OC

13.0%

US Building

5.9%

US Market

Return vs Industry: OC exceeded the US Building industry which returned 13% over the past year.

Return vs Market: OC exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

OCIndustryMarket
7 Day0.4%1.4%1.3%
30 Day1.3%-2.0%-1.9%
90 Day6.2%1.9%-1.8%
1 Year23.5%21.4%14.8%13.0%8.3%5.9%
3 Year22.5%17.4%26.6%16.0%45.6%36.2%
5 Year119.8%104.3%59.9%40.5%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Owens Corning undervalued compared to its fair value and its price relative to the market?

22.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OC ($60.97) is trading below our estimate of fair value ($78.96)

Significantly Undervalued: OC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OC is good value based on its PE Ratio (13x) compared to the Building industry average (20x).

PE vs Market: OC is good value based on its PE Ratio (13x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: OC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: OC is good value based on its PB Ratio (1.5x) compared to the US Building industry average (2.1x).


Next Steps

Future Growth

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

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OC's forecast earnings growth (11.7% per year) is above the savings rate (2.7%).

Earnings vs Market: OC's earnings (11.7% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: OC's earnings are forecast to grow, but not significantly.

Revenue vs Market: OC's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: OC's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OC's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Owens Corning performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OC's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: OC's earnings growth over the past year (68.5%) exceeds its 5-year average (14% per year).

Earnings vs Industry: OC earnings growth over the past year (68.5%) exceeded the Building industry 7.7%.


Return on Equity

High ROE: OC's Return on Equity (11.6%) is considered low.


Return on Assets

ROA vs Industry: OC's Return on Assets is below or equal to the Building industry average last year.


Return on Capital Employed

ROCE Improving: OC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Owens Corning's financial position?


Financial Position Analysis

Short Term Liabilities: OC's short term assets ($2.2B) exceeds its short term liabilities ($1.3B)

Long Term Liabilities: OC's short term assets (2.2B) do not cover its long term liabilities (4.4B)


Debt to Equity History and Analysis

Debt Level: OC's debt to equity ratio (76.5%) is considered high

Reducing Debt: OC's debt to equity ratio has increased from 57.3% to 76.5% over the past 5 years.

Debt Coverage: OC's debt is well covered by operating cash flow (23.1%).

Interest Coverage: OC's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: OC has a high level of physical assets or inventory.

Debt Coverage by Assets: OC's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.8%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OC's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: OC's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), OC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OC's dividends in 3 years are forecast to be well covered by earnings (18.1% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Brian Chambers (52yo)

0.5yrs

Tenure

US$2,650,390

Compensation

Mr. Brian D. Chambers has been Chief Executive Officer and Director of Owens Corning since April 18, 2019 and served as its President and Chief Operating Officer since August 1, 2018 until since April 18,  ...


CEO Compensation Analysis

Compensation vs. Market: Brian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

7.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: OC's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: OC's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$96,17416 Sep 19
Kelly Schmidt
EntityIndividual
Shares1,589
Max PriceUS$60.53
SellUS$1,712,40022 Aug 19
Michael Thaman
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceUS$57.08
SellUS$151,64715 Aug 19
W. Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,773
Max PriceUS$54.69
SellUS$109,67415 Aug 19
Ava Harter
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares2,000
Max PriceUS$54.84
SellUS$129,29210 Jun 19
Kelly Schmidt
EntityIndividual
Shares2,438
Max PriceUS$53.03
SellUS$96,14110 Jun 19
Ava Harter
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,856
Max PriceUS$51.80
SellUS$1,544,64006 Jun 19
Michael Thaman
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceUS$51.49
SellUS$409,14108 May 19
Gunner Smith
EntityIndividual
Shares7,900
Max PriceUS$51.79
SellUS$30,90301 May 19
Julian Francis
EntityIndividual
Shares600
Max PriceUS$51.51
SellUS$173,93718 Mar 19
Marcio Sandri
EntityIndividual
Shares3,700
Max PriceUS$47.01
SellUS$948,07126 Feb 19
Daniel Smith
EntityIndividual
Role
Chief Administrative Officer
Senior Vice President of Organization & Administration
Shares18,681
Max PriceUS$50.76

Ownership Breakdown


Management Team

  • Mike Thaman (55yo)

    Executive Chairman

    • Tenure: 17.5yrs
    • Compensation: US$8.74m
  • Dan Smith (54yo)

    Senior Vice President of Organization & Administration

    • Tenure: 4.9yrs
    • Compensation: US$2.53m
  • Brian Chambers (52yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: US$2.65m
  • Frank O'Brien-Bernini (62yo)

    Chief Sustainability Officer & VP

    • Tenure: 18.8yrs
  • William LeBaron (63yo)

    Vice President and President of Owens Corning Construction Services

    • Tenure: 13.1yrs
  • Daniel Zhang (56yo)

    Vice President and Managing Director of Asia-Pacific Building Materials Group

    • Tenure: 10.6yrs
  • Michael McMurray (54yo)

    Senior VP & CFO

    • Tenure: 7.2yrs
    • Compensation: US$2.99m
  • Thierry Denis

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Raymund Trost

    Vice President of CSB Europe and Managing Director of CSB Europe

    • Tenure: 15.6yrs
  • Ava Harter (49yo)

    Senior VP

    • Tenure: 4.4yrs

Board Members

  • Mike Thaman (55yo)

    Executive Chairman

    • Tenure: 17.5yrs
    • Compensation: US$8.74m
  • Ralph Hake (70yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$235.00k
  • Cesar Conde (45yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$235.00k
  • James Ferguson (64yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$255.00k
  • John Williams (65yo)

    Lead Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$275.00k
  • Brian Chambers (52yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: US$2.65m
  • Suzanne Nimocks (60yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$250.00k
  • Ed Lonergan (59yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$250.00k
  • W. Morris (58yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$235.00k
  • Maryann Mannen (56yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$235.00k

Company Information

Owens Corning's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Owens Corning
  • Ticker: OC
  • Exchange: NYSE
  • Founded: 1938
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$6.633b
  • Shares outstanding: 108.79m
  • Website: https://www.owenscorning.com

Number of Employees


Location

  • Owens Corning
  • One Owens Corning Parkway
  • Toledo
  • Ohio
  • 43659
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2006
O5QDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2006

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:56
End of Day Share Price2019/10/14 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.