Owens Corning
Market Cap
US$9.9b
Last Updated
2021/07/31 23:40 UTC
Data Sources
Company Financials +
Executive Summary
Owens Corning manufactures and markets a range of insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 0.9% per year for the next 3 years
Snowflake Analysis
Undervalued 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
Stable Share Price: OC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: OC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
2.1%
OC
1.5%
US Building
-0.5%
US Market
1 Year Return
59.0%
OC
68.0%
US Building
35.9%
US Market
Return vs Industry: OC underperformed the US Building industry which returned 68.1% over the past year.
Return vs Market: OC exceeded the US Market which returned 35.9% over the past year.
Shareholder returns
| OC | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 1.5% | -0.5% |
| 30 Day | -3.2% | 3.2% | 0.09% |
| 90 Day | -0.7% | 6.8% | 3.2% |
| 1 Year | 61.0%59.0% | 70.0%68.0% | 38.0%35.9% |
| 3 Year | 64.3%56.9% | 98.0%80.6% | 62.8%52.6% |
| 5 Year | 93.0%79.9% | 131.3%99.2% | 121.2%96.9% |
Long-Term 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
3 weeks ago | Simply Wall St
Owens Corning (NYSE:OC) Looks Like A Good Stock, And It's Going Ex-Dividend Soon1 month ago | Simply Wall St
Why Owens Corning (NYSE:OC) Could Be Worth Watching2 months ago | Simply Wall St
Did Business Growth Power Owens Corning's (NYSE:OC) Share Price Gain of 110%?Valuation
Is Owens Corning undervalued compared to its fair value and its price relative to the market?
47.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OC ($96.16) is trading below our estimate of fair value ($182.83)
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 (10.9x) compared to the US Building industry average (23.6x).
PE vs Market: OC is good value based on its PE Ratio (10.9x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: OC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: OC is good value based on its PB Ratio (2.4x) compared to the US Building industry average (2.7x).
Future Growth
How is Owens Corning forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
-0.9%
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 (-0.9% per year).
Earnings vs Market: OC's earnings are forecast to decline over the next 3 years (-0.9% per year).
High Growth Earnings: OC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: OC's revenue (3.6% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: OC's revenue (3.6% 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 (16.7%).
Past Performance
How has Owens Corning performed over the past 5 years?
-15.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OC has high quality earnings.
Growing Profit Margin: OC became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: OC's earnings have declined by 15.2% per year over the past 5 years.
Accelerating Growth: OC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: OC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Building industry (26.4%).
Return on Equity
High ROE: OC's Return on Equity (22.7%) is considered high.
Financial Health
How is Owens Corning's financial position?
Financial Position Analysis
Short Term Liabilities: OC's short term assets ($3.1B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: OC's short term assets ($3.1B) do not cover its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: OC's debt to equity ratio (73.8%) is considered high.
Reducing Debt: OC's debt to equity ratio has increased from 56.6% to 73.8% over the past 5 years.
Debt Coverage: OC's debt is well covered by operating cash flow (52.4%).
Interest Coverage: OC's interest payments on its debt are well covered by EBIT (9.1x coverage).
Balance Sheet
Dividend
What is Owens Corning current dividend yield, its reliability and sustainability?
1.08%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OC's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: OC's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (3.54%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (11.5%), OC's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OC's dividends in 3 years are forecast to be thoroughly covered by earnings (12.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Brian Chambers (54 yo)
2.17yrs
Tenure
US$7,549,789
Compensation
Mr. Brian D. Chambers has been Chief Executive Officer and Director of Owens Corning since April 18, 2019 and also serves as its President since August 1, 2018. He serves as Chairman of the Board at Owens ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD7.55M) is below average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: OC's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: OC's board of directors are considered experienced (4.8 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
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$9.917b
- Shares outstanding: 103.13m
- Website: https://www.owenscorning.com
Number of Employees
Location
- Owens Corning
- One Owens Corning Parkway
- Toledo
- Ohio
- 43659
- United States
Listings
Biography
Owens Corning manufactures and markets a range of insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally. It operates in three s...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 23:40 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.