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 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

OCIndustryMarket
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

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

NamePositionTenureCompensationOwnership
Michael Thaman
Executive Chairman18yrsUS$3.36m0.40% $15.0m
Brian Chambers
CEO, President & Director1yrUS$6.09m0.072% $2.7m
Prithvi Gandhi
Interim CFO & VP0.50yrUS$1.06m0.042% $1.6m
Ava Harter
Senior VP4.92yrsUS$1.80m0.025% $964.4k
Daniel Smith
Senior VP & Chief Growth Officer0.33yrUS$2.10m0.040% $1.5m
Marcio Sandri
President of Composites1.92yrsUS$1.80m0.019% $726.6k
Scott Cripps
Vice President of Investor Relationsno datano datano data
Paula Russell
Senior VP & Chief Human Resources Officer1yrno datano data
Raymund Trost
Vice President of CSB Europe and Managing Director of CSB Europe16.08yrsno datano data
Frank O'Brien-Bernini
Chief Sustainability Officer & VP19.25yrsno datano 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

NamePositionTenureCompensationOwnership
Michael Thaman
Executive Chairman18yrsUS$3.36m0.40% $15.0m
Brian Chambers
CEO, President & Director1yrUS$6.09m0.072% $2.7m
Ralph Hake
Independent Director13.58yrsUS$235.04k0.049% $1.9m
James Ferguson
Independent Director9.25yrsUS$244.97k0.062% $2.3m
John Williams
Lead Independent Director5yrsUS$275.02k0.034% $1.3m
Suzanne Nimocks
Independent Director7.58yrsUS$249.98k0.021% $804.6k
Edward Lonergan
Independent Director6.58yrsUS$250.02k0.029% $1.1m
W. Morris
Independent Director13.25yrsUS$235.04k0.036% $1.3m
Maryann Mannen
Independent Director5.67yrsUS$245.01k0.014% $516.5k
Adrienne Elsner
Independent Director2.17yrsUS$235.04k0.0051% $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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 05:30
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.