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

-1.0%

NYSE:OC

-1.3%

US Building

-0.3%

US Market


1 Year Return

-15.7%

NYSE:OC

0.9%

US Building

3.9%

US Market

OC underperformed the Building industry which returned 1.3% over the past year.

OC underperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

OCIndustryMarket
7 Day-1.0%-1.3%-0.3%
30 Day14.6%2.6%2.3%
90 Day2.6%4.5%2.3%
1 Year-14.2%-15.7%2.5%0.9%6.2%3.9%
3 Year6.3%2.0%17.7%7.8%46.4%36.7%
5 Year69.0%56.8%42.4%24.3%59.6%41.8%

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

Valuation

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

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Owens Corning's share price is below the future cash flow value, but not 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?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Owens Corning's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

Owens Corning's earnings are expected to grow by 10.7% 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

Unable to establish if Owens Corning will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Owens Corning performed over the past 5 years?

12.2%

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 (77.5% vs 12.2%)

Owens Corning's earnings growth has exceeded the US Building industry average in the past year (77.5% vs 24.3%).


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 (86.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (61.2% vs 86.9% today).

Debt is not well covered by operating cash flow (19.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

1.61%

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 (1.43%).

Owens Corning's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).

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 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.9x coverage).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Brian Chambers (52yo)

0.3yrs

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

5.8yrs

Average Tenure

54yo

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

6.3yrs

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$129,29210 Jun 19
Kelly Schmidt
EntityIndividual
Shares2,438
Max PriceUS$53.03
SellUS$96,14110 Jun 19
Ava Harter
EntityIndividual
Role
Senior VP
Shares1,856
Max PriceUS$51.80
SellUS$1,544,64006 Jun 19
Michael Thaman
EntityIndividual
Role
Executive Chairman
Chairman of the Board
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
Senior Vice President of Organization & Administration
Shares18,681
Max PriceUS$50.76
SellUS$88,52427 Aug 18
W. Morris
EntityIndividual
Role
Member of the Board of Directors
Shares1,514
Max PriceUS$58.47

Ownership Breakdown


Management Team

  • Mike Thaman (55yo)

    Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: $8.74m
  • Ava Harter (49yo)

    Senior VP

    • Tenure: 4.2yrs
  • Thierry Denis

    Vice President of Investor Relations

  • Julian Francis (52yo)

    • Compensation: $2.88m
  • Raymund Trost

    Vice President of CSB Europe and Managing Director of CSB Europe

    • Tenure: 15.3yrs
  • William LeBaron (63yo)

    Vice President and President of Owens Corning Construction Services

    • Tenure: 12.8yrs
  • Frank O'Brien-Bernini (62yo)

    Chief Sustainability Officer & VP

    • Tenure: 18.5yrs
  • Dan Smith (54yo)

    Senior Vice President of Organization & Administration

    • Tenure: 4.7yrs
    • Compensation: $2.53m
  • Michael McMurray (54yo)

    Senior VP & CFO

    • Tenure: 6.9yrs
    • Compensation: $2.99m
  • Brian Chambers (52yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: $2.65m

Board Members

  • Mike Thaman (55yo)

    Executive Chairman

    • Tenure: 17.3yrs
    • Compensation: $8.74m
  • Cesar Conde (45yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: $235.00k
  • Ed Lonergan (59yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: $250.00k
  • James Ferguson (64yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: $255.00k
  • Maryann Mannen (56yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: $235.00k
  • Brian Chambers (52yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: $2.65m
  • Ralph Hake (70yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: $235.00k
  • Suzanne Nimocks (60yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: $250.00k
  • John Williams (65yo)

    Lead Independent Director

    • Tenure: 4.3yrs
    • Compensation: $275.00k
  • W. Morris (58yo)

    Director

    • Tenure: 12.5yrs
    • Compensation: $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$6.046b
  • Shares outstanding: 108.57m
  • Website: Click here

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 Analysis2019/07/19 00:07
End of Day Share Price2019/07/18 00:00
Earnings2019/03/31
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.