Owens Corning
Market Cap
US$3.8b
Last Updated
2020/04/04 05:30 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with mediocre balance sheet.
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
Stable Share Price: OC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-10.1%
OC
-6.1%
US Building
-2.0%
US Market
1 Year Return
-31.1%
OC
-24.6%
US Building
-15.1%
US Market
Return vs Industry: OC underperformed the US Building industry which returned -19.4% over the past year.
Return vs Market: OC underperformed the US Market which returned -13.6% over the past year.
Shareholder returns
| OC | Industry | Market | |
|---|---|---|---|
| 7 Day | -10.1% | -6.1% | -2.0% |
| 30 Day | -34.0% | -35.1% | -19.7% |
| 90 Day | -45.8% | -35.0% | -23.2% |
| 1 Year | -30.0%-31.1% | -23.4%-24.6% | -13.4%-15.1% |
| 3 Year | -39.5%-42.0% | -21.0%-24.6% | 10.9%3.7% |
| 5 Year | -12.2%-18.3% | -6.6%-18.6% | 28.4%14.4% |
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
1 day ago | Simply Wall St
How Does Owens Corning's (NYSE:OC) P/E Compare To Its Industry, After The Share Price Drop?2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Owens Corning's (NYSE:OC) P/E Ratio3 weeks ago | Simply Wall St
Interim CFO & VP Prithvi Gandhi Just Bought Shares In Owens Corning (NYSE:OC)Valuation
Is Owens Corning undervalued compared to its fair value and its price relative to the market?
36.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OC ($36.81) is trading below our estimate of fair value ($54.88)
Significantly Below Fair Value: OC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OC is good value based on its PE Ratio (9.9x) compared to the Building industry average (16.5x).
PE vs Market: OC is good value based on its PE Ratio (9.9x) compared to the US market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: OC is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: OC is good value based on its PB Ratio (0.9x) compared to the US Building industry average (1.2x).
Next Steps
Future Growth
How is Owens Corning forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OC's forecast earnings growth (5.9% per year) is above the savings rate (1.7%).
Earnings vs Market: OC's earnings (5.9% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: OC's earnings are forecast to grow, but not significantly.
Revenue vs Market: OC's revenue (0.4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: OC's revenue (0.4% 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 low in 3 years time (9.9%).
Next Steps
Past Performance
How has Owens Corning performed over the past 5 years?
13.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OC has high quality earnings.
Growing Profit Margin: OC's current net profit margins (5.7%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: OC's earnings have grown by 13.8% per year over the past 5 years.
Accelerating Growth: OC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OC had negative earnings growth (-25.7%) over the past year, making it difficult to compare to the Building industry average (-15.9%).
Return on Equity
High ROE: OC's Return on Equity (8.7%) is considered low.
Next Steps
Financial Health
How is Owens Corning's financial position?
Financial Position Analysis
Short Term Liabilities: OC's short term assets ($2.1B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: OC's short term assets ($2.1B) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: OC's debt to equity ratio (63.9%) is considered high.
Reducing Debt: OC's debt to equity ratio has increased from 52.6% to 63.9% over the past 5 years.
Debt Coverage: OC's debt is well covered by operating cash flow (34.7%).
Interest Coverage: OC's interest payments on its debt are well covered by EBIT (5.9x 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?
2.74%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OC's dividend (2.61%) is higher than the bottom 25% of dividend payers in the US market (2%).
High Dividend: OC's dividend (2.61%) is low compared to the top 25% of dividend payers in the US market (5.56%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.3%), 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 (16.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Brian Chambers (52yo)
1
Tenure
US$6,086,329
Compensation
Mr. Brian D. Chambers has been Chief Executive Officer and Director of Owens Corning since April 18, 2019 and serves as its President since August 1, 2018. Previously he served as Chief Operating Officer s ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD6.09M) is about average for companies of similar size in the US market ($USD5.63M).
Compensation vs Earnings: Brian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 18yrs | US$3.36m | 0.40% $15.0m | |
| CEO, President & Director | 1yr | US$6.09m | 0.072% $2.7m | |
| Interim CFO & VP | 0.50yr | US$1.06m | 0.042% $1.6m | |
| Senior VP | 4.92yrs | US$1.80m | 0.025% $964.4k | |
| Senior VP & Chief Growth Officer | 0.33yr | US$2.10m | 0.040% $1.5m | |
| President of Composites | 1.92yrs | US$1.80m | 0.019% $726.6k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP & Chief Human Resources Officer | 1yr | no data | no data | |
| Vice President of CSB Europe and Managing Director of CSB Europe | 16.08yrs | no data | no data | |
| Chief Sustainability Officer & VP | 19.25yrs | no data | no data |
1.0yrs
Average Tenure
53yo
Average Age
Experienced Management: OC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 18yrs | US$3.36m | 0.40% $15.0m | |
| CEO, President & Director | 1yr | US$6.09m | 0.072% $2.7m | |
| Independent Director | 13.58yrs | US$235.04k | 0.049% $1.9m | |
| Independent Director | 9.25yrs | US$244.97k | 0.062% $2.3m | |
| Lead Independent Director | 5yrs | US$275.02k | 0.034% $1.3m | |
| Independent Director | 7.58yrs | US$249.98k | 0.021% $804.6k | |
| Independent Director | 6.58yrs | US$250.02k | 0.029% $1.1m | |
| Independent Director | 13.25yrs | US$235.04k | 0.036% $1.3m | |
| Independent Director | 5.67yrs | US$245.01k | 0.014% $516.5k | |
| Independent Director | 2.17yrs | US$235.04k | 0.0051% $193.9k |
7.1yrs
Average Tenure
58.5yo
Average Age
Experienced Board: OC's board of directors are considered experienced (7.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: OC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$3.786b
- Shares outstanding: 108.24m
- Website: https://www.owenscorning.com
Number of Employees
Location
- Owens Corning
- One Owens Corning Parkway
- Toledo
- Ohio
- 43659
- United States
Listings
| 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 |
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 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 under the Thermafiber, FOAMGLAS, Paroc, Owens Corning PINK, and FIBERGLAS Insulation brand names. 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 05:30 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.