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

Fair 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

0.5%

OC

-0.6%

US Building

-0.2%

US Market


1 Year Return

3.8%

OC

4.4%

US Building

1.1%

US Market

OC matched the Building industry (3.8%) over the past year.

OC outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

OCIndustryMarket
7 Day0.5%-0.6%-0.2%
30 Day6.0%4.2%2.5%
90 Day17.7%5.8%1.6%
1 Year5.7%3.8%6.1%4.4%3.4%1.1%
3 Year18.2%13.4%25.6%15.1%45.2%35.8%
5 Year101.6%87.0%55.4%36.1%62.6%44.8%

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

Taking A Look At Owens Corning's (NYSE:OC) ROE

Valuation

Is Owens Corning undervalued based on future cash flows and its price relative to the stock market?

12.88x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Owens Corning's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Owens Corning's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Owens Corning is good value based on earnings compared to the US Building industry average.

Owens Corning is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Owens Corning is poor value based on expected growth next year.


Price Based on Value of Assets

Owens Corning is good value based on assets compared to the US Building industry average.


Next Steps

Future Growth

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

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Owens Corning's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Owens Corning's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Owens Corning's revenue growth is positive but not above the United States of America market average.

Owens Corning's earnings growth is positive but not above the United States of America market average.

Owens Corning's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Owens Corning is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Owens Corning's year on year earnings growth rate has been positive over the past 5 years.

Owens Corning's 1-year earnings growth exceeds its 5-year average (68.5% vs 14%)

Owens Corning's earnings growth has exceeded the US Building industry average in the past year (68.5% vs 7.7%).


Return on Equity

Owens Corning has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Owens Corning used its assets less efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Owens Corning's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Owens Corning's financial position?


Financial Position Analysis

Owens Corning is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Owens Corning's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Owens Corning's level of debt (76.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (57.3% vs 76.5% today).

Debt is well covered by operating cash flow (23.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.51%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Owens Corning's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Owens Corning's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Owens Corning has been paying a dividend for less than 10 years.

Dividend payments have increased, but Owens Corning only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Brian Chambers (52yo)

0.4yrs

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

Brian's remuneration is lower than average for companies of similar size in United States of America.

Brian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.1yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Owens Corning management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.5yrs

Average Tenure

58.5yo

Average Age

The tenure for the Owens Corning board of directors is about average.


Insider Trading

Owens Corning individual 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
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: 17.4yrs
    • Compensation: US$8.74m
  • Dan Smith (54yo)

    Senior Vice President of Organization & Administration

    • Tenure: 4.8yrs
    • Compensation: US$2.53m
  • Brian Chambers (52yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: US$2.65m
  • Frank O'Brien-Bernini (62yo)

    Chief Sustainability Officer & VP

    • Tenure: 18.7yrs
  • William LeBaron (63yo)

    Vice President and President of Owens Corning Construction Services

    • Tenure: 13yrs
  • Daniel Zhang (56yo)

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

    • Tenure: 10.5yrs
  • Michael McMurray (54yo)

    Senior VP & CFO

    • Tenure: 7.1yrs
    • 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: 15.5yrs
  • Ava Harter (49yo)

    Senior VP

    • Tenure: 4.3yrs

Board Members

  • Mike Thaman (55yo)

    Executive Chairman

    • Tenure: 17.4yrs
    • Compensation: US$8.74m
  • Ralph Hake (70yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$235.00k
  • Cesar Conde (45yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$235.00k
  • James Ferguson (64yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: US$255.00k
  • John Williams (65yo)

    Lead Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$275.00k
  • Brian Chambers (52yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: US$2.65m
  • Suzanne Nimocks (60yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$250.00k
  • Ed Lonergan (59yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$250.00k
  • W. Morris (58yo)

    Director

    • Tenure: 12.7yrs
    • Compensation: US$235.00k
  • Maryann Mannen (56yo)

    Director

    • Tenure: 5.1yrs
    • 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$6.579b
  • 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 Analysis2019/09/20 00:38
End of Day Share Price2019/09/19 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.