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USG

NYSE:USG
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
USG
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide. The last earnings update was 68 days ago. More info.


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USG Share Price and Events
7 Day Returns
0.2%
NYSE:USG
-0.5%
US Building
-0.1%
US Market
1 Year Returns
8.5%
NYSE:USG
-0%
US Building
7.6%
US Market
USG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
USG (USG) 0.2% 0.9% 0.8% 8.5% 53.7% 44.1%
US Building -0.5% 6.7% 13.5% -0% 9.1% 21.3%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • USG outperformed the Building industry which returned -0% over the past year.
Price Volatility
USG
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of USG to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for USG.

NYSE:USG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:USG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.17
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.173 (1 + (1- 21%) (17.71%))
1.226
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.226 * 5.96%)
10.04%

Discounted Cash Flow Calculation for NYSE:USG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for USG is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:USG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.04%)
2019 316.17 Analyst x3 287.33
2020 296.00 Analyst x2 244.47
2021 390.50 Analyst x2 293.10
2022 261.00 Analyst x1 178.04
2023 303.00 Analyst x1 187.84
2024 298.12 Est @ -1.61% 167.95
2025 297.19 Est @ -0.31% 152.16
2026 298.98 Est @ 0.6% 139.12
2027 302.69 Est @ 1.24% 128.00
2028 307.80 Est @ 1.69% 118.29
Present value of next 10 years cash flows $1,896.30
NYSE:USG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $307.80 × (1 + 2.73%) ÷ (10.04% – 2.73%)
$4,328.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,328.26 ÷ (1 + 10.04%)10
$1,663.35
NYSE:USG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,896.30 + $1,663.35
$3,559.64
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,559.64 / 140.10
$25.41
NYSE:USG Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.41
Current discount Discount to share price of $43.48
= -1 x ($43.48 - $25.41) / $25.41
-71.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of USG is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for USG's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are USG's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:USG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.38
NYSE:USG Share Price ** NYSE (2019-04-23) in USD $43.48
United States of America Building Industry PE Ratio Median Figure of 29 Publicly-Listed Building Companies 18.69x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of USG.

NYSE:USG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:USG Share Price ÷ EPS (both in USD)

= 43.48 ÷ 1.38

31.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • USG is overvalued based on earnings compared to the US Building industry average.
  • USG is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does USG's expected growth come at a high price?
Raw Data
NYSE:USG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
9.4%per year
United States of America Building Industry PEG Ratio Median Figure of 27 Publicly-Listed Building Companies 1.3x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:USG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.6x ÷ 9.4%

3.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • USG is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on USG's assets?
Raw Data
NYSE:USG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.70
NYSE:USG Share Price * NYSE (2019-04-23) in USD $43.48
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.15x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:USG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:USG Share Price ÷ Book Value per Share (both in USD)

= 43.48 ÷ 13.70

3.17x

* Primary Listing of USG.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • USG is overvalued based on assets compared to the US Building industry average.
X
Value checks
We assess USG's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. USG has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is USG expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is USG expected to grow at an attractive rate?
  • USG's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • USG's earnings growth is positive but not above the United States of America market average.
  • USG's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:USG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:USG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 9.4%
NYSE:USG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.2%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 7.4%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:USG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:USG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,913 496 314 1
2022-12-31 3,749 446 271 1
2021-12-31 3,740 487 271 2
2020-12-31 3,593 444 232 4
2019-12-31 3,479 417 213 5
NYSE:USG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,336 284 193
2018-09-30 3,348 329 82
2018-06-30 3,292 273 90
2018-03-31 3,223 397 78
2017-12-31 3,204 382 97
2017-09-30 3,107 278 195
2017-06-30 3,079 337 185
2017-03-31 3,037 373 206
2016-12-31 3,017 373 211
2016-09-30 3,001 475 1,002
2016-06-30 2,981 461 1,014
2016-03-31 2,751 343 1,012

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • USG's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
  • USG's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:USG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from USG Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:USG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.19 2.19 2.19 1.00
2022-12-31 1.89 1.89 1.89 1.00
2021-12-31 1.91 2.21 1.60 2.00
2020-12-31 1.63 1.84 1.30 3.00
2019-12-31 1.50 1.60 1.45 4.00
NYSE:USG Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.38
2018-09-30 0.58
2018-06-30 0.63
2018-03-31 0.54
2017-12-31 0.67
2017-09-30 1.34
2017-06-30 1.27
2017-03-31 1.41
2016-12-31 1.45
2016-09-30 6.87
2016-06-30 6.96
2016-03-31 6.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • USG is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess USG's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
USG has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has USG performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare USG's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • USG's year on year earnings growth rate has been positive over the past 5 years.
  • USG's 1-year earnings growth exceeds its 5-year average (99% vs 3.2%)
  • USG's earnings growth has exceeded the US Building industry average in the past year (99% vs 33.8%).
Earnings and Revenue History
USG's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from USG Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:USG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,336.00 193.00 326.00
2018-09-30 3,348.00 82.00 330.00
2018-06-30 3,292.00 90.00 332.00
2018-03-31 3,223.00 78.00 307.00
2017-12-31 3,204.00 97.00 277.00
2017-09-30 3,107.00 195.00 300.00
2017-06-30 3,079.00 185.00 313.00
2017-03-31 3,037.00 206.00 311.00
2016-12-31 3,017.00 211.00 294.00
2016-09-30 3,001.00 1,002.00 281.00
2016-06-30 2,981.00 1,014.00 282.00
2016-03-31 2,751.00 1,012.00 284.00
2015-12-31 2,913.00 976.00 296.00
2015-09-30 3,149.00 104.00 336.00
2015-06-30 3,374.00 24.00 332.00
2015-03-31 3,783.00 17.00 341.00
2014-12-31 2,904.00 25.00 338.00
2014-09-30 3,685.00 89.00 321.00
2014-06-30 3,638.00 125.00 330.00
2014-03-31 3,606.00 92.00 324.00
2013-12-31 3,570.00 49.00 320.00
2013-09-30 3,470.00 -14.00 309.00
2013-06-30 3,373.00 -68.00 303.00
2013-03-31 3,255.00 -152.00 301.00
2012-12-31 3,224.00 -183.00 304.00
2012-09-30 3,135.00 -218.00 300.00
2012-06-30 3,070.00 -305.00 292.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • USG has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • USG used its assets less efficiently than the US Building industry average last year based on Return on Assets.
  • USG's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess USG's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
USG has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is USG's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up USG's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • USG is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • USG's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of USG's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from USG Company Filings, last reported 3 months ago.

NYSE:USG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,919.00 1,079.00 383.00
2018-09-30 1,863.00 1,079.00 390.00
2018-06-30 1,863.00 1,078.00 304.00
2018-03-31 1,839.00 1,078.00 323.00
2017-12-31 1,845.00 1,078.00 456.00
2017-09-30 1,982.00 1,077.00 408.00
2017-06-30 1,968.00 1,077.00 430.00
2017-03-31 1,976.00 1,084.00 410.00
2016-12-31 1,886.00 1,083.00 489.00
2016-09-30 1,629.00 1,977.00 736.00
2016-06-30 1,566.00 2,039.00 687.00
2016-03-31 1,518.00 2,114.00 553.00
2015-12-31 1,436.00 2,175.00 636.00
2015-09-30 516.00 2,188.00 422.00
2015-06-30 476.00 2,188.00 292.00
2015-03-31 403.00 2,206.00 214.00
2014-12-31 408.00 2,195.00 324.00
2014-09-30 766.00 2,210.00 304.00
2014-06-30 814.00 2,270.00 314.00
2014-03-31 679.00 2,343.00 246.00
2013-12-31 662.00 2,363.00 892.00
2013-09-30 72.00 2,325.50 552.00
2013-06-30 40.00 2,319.00 529.00
2013-03-31 40.00 2,315.00 494.00
2012-12-31 19.00 2,313.00 652.00
2012-09-30 122.00 2,313.00 526.00
2012-06-30 131.00 2,312.00 479.00
  • USG's level of debt (56.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (356.8% vs 56.2% today).
  • Debt is well covered by operating cash flow (26.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess USG's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. USG has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from USG dividends. Estimated to be 0% next year.
If you bought $2,000 of USG shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate USG's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate USG's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:USG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:USG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as USG has not reported any payouts.
  • Unable to verify if USG's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of USG's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as USG has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of USG's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess USG's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can USG afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. USG has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jenny Scanlon
COMPENSATION $6,230,823
AGE 51
TENURE AS CEO 2.4 years
CEO Bio

Ms. Jennifer F. Scanlon, also known as Jenny, has been a Director of Norfolk Southern Corporation since January 22, 2018. She has been the Chief Executive Officer and President of USG Corporation since November 01, 2016 and its Executive Vice President from March 7, 2016 to October 31, 2016 and served as its President of International since September 2010. Ms. Scanlon served as President of L&W Supply Corporation at USG Corporation since July 2015 until October 2016. She serves as Vice President of CGC, Inc. She leads USG's business in Canada, Europe, Mexico, Asia/Pacific and Latin America. She is accountable for the overall strategic planning within USG International. She served as Senior Vice President of USG Corporation since October 2013 until March 7, 2016. She served as Vice President of USG Corporation since February 2008. Ms. Scanlon served as Director of CRM/SCM Strategy and Implementation at USG Building Systems until May 2007. Her previous assignments include Chief Information Officer of USG Corporation since February 2008 until September 2010. She initially joined USG as the director of Supply Chain Management and Customer Relationship Management Strategy and Implementation in January 2003. At USG, she planned and managed LinX — a four-year project that positioned USG to improve customer satisfaction and increase operational efficiencies across manufacturing, supply-chain, customer service, sales and human resource functions. LinX implemented Oracle-based solutions across more than 70 North American sites. She served as a Senior Vice President of Bricker & Associates, Inc., which became Keane Consulting Group, an operations improvement consulting firm specializing in assisting Fortune 500 organizations dramatically increase profits through operational improvement. She serves as the Chairman of the Board at USG Boral Building Products Pte Limited. She has been a Director of USG Corporation since September 23, 2016. Ms. Scanlon serves on the board of directors of SHORE Community Services, Inc. and the board of governors of Lumity. Ms. Scanlon served as a Director of the National Association of Manufacturers and the Chicago Council on Global Affairs. She also served as the chairman of the board of USG Boral from its inception in February 2014 until October 2016. She is a member of the Executive Club of Chicago and the Mayor's Council of Technology Advisors. Ms. Scanlon graduated from the University of Notre Dame in 1988 with a B.A. in government and computer applications. She earned an MBA in finance and marketing from the University of Chicago in 1992.

CEO Compensation
  • Jenny's compensation has been consistent with company performance over the past year.
  • Jenny's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the USG management team in years:

3.2
Average Tenure
54
Average Age
  • The tenure for the USG management team is about average.
Management Team

Jenny Scanlon

TITLE
President
COMPENSATION
$6M
AGE
51
TENURE
2.4 yrs

Matthew Hilzinger

TITLE
Executive VP
COMPENSATION
$2M
AGE
54
TENURE
6.9 yrs

Michelle Warner

TITLE
Senior VP
COMPENSATION
$1M
AGE
51
TENURE
3.3 yrs

Dominic Dannessa

TITLE
Executive VP and Chief Customer & Innovation Officer
COMPENSATION
$1M
AGE
61
TENURE
13.3 yrs

Greg Salah

TITLE
Senior VP & President of Gypsum
COMPENSATION
$2M
AGE
55
TENURE
3.1 yrs

Joe Holmes

TITLE
Senior Vice President of Manufacturing
AGE
57
TENURE
1.4 yrs

Brian Cook

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$2M
AGE
60
TENURE
3.6 yrs

Bill Madsen

TITLE
Senior Director of Investor Relations

Srinivas Veeramasuneni

TITLE
VP & Chief Innovation Officer
AGE
53
TENURE
1.4 yrs

Chris Macey

TITLE
Senior VP & President of Ceilings
AGE
46
Board of Directors Tenure

Average tenure and age of the USG board of directors in years:

7.9
Average Tenure
61
Average Age
  • The tenure for the USG board of directors is about average.
Board of Directors

Steve Leer

TITLE
Non-Executive Chairman
COMPENSATION
$336K
AGE
65
TENURE
2.4 yrs

Jenny Scanlon

TITLE
President
COMPENSATION
$6M
AGE
51
TENURE
2.6 yrs

Bill Hernandez

TITLE
Director
COMPENSATION
$223K
AGE
70
TENURE
9.6 yrs

Richard Lavin

TITLE
Director
COMPENSATION
$215K
AGE
66
TENURE
9.4 yrs

José Armario

TITLE
Independent Director
COMPENSATION
$201K
AGE
58
TENURE
12.3 yrs

Brian Kenney

TITLE
Independent Director
COMPENSATION
$200K
AGE
59
TENURE
8.2 yrs

Gretchen Frances Haggerty

TITLE
Director
COMPENSATION
$200K
AGE
62
TENURE
7.9 yrs

Matt Carter

TITLE
Director
COMPENSATION
$200K
AGE
57
TENURE
6.6 yrs

Tom Burke

TITLE
Director
COMPENSATION
$200K
AGE
61
TENURE
5.6 yrs
Who owns this company?
Recent Insider Trading
  • USG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Feb 19 Sell Jeanette Press Individual 25. Feb 19 25. Feb 19 -3,500 $43.25 $-151,375
27. Nov 18 Sell Matthew Hilzinger Individual 27. Nov 18 27. Nov 18 -25,000 $43.01 $-1,075,143
06. Nov 18 Sell Jennifer Scanlon Individual 05. Nov 18 06. Nov 18 -32,652 $42.53 $-1,388,233
30. Jul 18 Sell Dominic Dannessa Individual 27. Jul 18 30. Jul 18 -10,000 $43.15 $-431,003
X
Management checks
We assess USG's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. USG has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Examining USG Corporation’s (NYSE:USG) Weak Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Did USG Corporation (NYSE:USG) Create Value For Investors Over The Past Year?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … How Do I Calculate Return On Equity … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What You Must Know About USG Corporation's (NYSE:USG) Financial Strength

Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Today we will look at USG’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

What USG Corporation’s (NYSE:USG) Insiders Know That You Don't

some insider selling over the past three months, with insiders divesting from. … It is widely considered that insider selling stock in their own companies is potentially a bearish signal. … The MIT Press (1998) published an article showing that stocks following insider selling underperformed the market by 2.7%

Simply Wall St -

USG Corporation (NYSE:USG): What Are Investors Earning On Their Capital?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Thus, to understand how your money can grow by investing in USG, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Does USG Corporation's (NYSE:USG) PE Ratio Signal A Selling Opportunity?

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between USG Corporation (NYSE:USG)’s fundamentals and stock market performance. … While this makes USG appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Calculating The Fair Value Of USG Corporation (NYSE:USG)

How far off is USG Corporation (NYSE:USG) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Why USG Corporation (NYSE:USG) Delivered An Inferior ROE Compared To The Industry

and want to better understand how you can grow your money by investing in USG Corporation (NYSE:USG). … USG Corporation (NYSE:USG) delivered a less impressive 4.24% ROE over the past year, compared to the 12.77% return generated by its industry. … Return on Equity (ROE) weighs USG’s profit against the level of its shareholders’ equity.

Simply Wall St -

How Financially Strong Is USG Corporation (NYSE:USG)?

At this constant level of debt, the current cash and short-term investment levels stands at US$456.00M for investing into the business. … Moreover, USG has produced cash from operations of US$382.00M over the same time period, resulting in an operating cash to total debt ratio of 35.44%, meaning that USG’s operating cash is sufficient to cover its debt. … Next Steps: USG’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Does USG Corporation's (NYSE:USG) Share Price Already Account For Its High Growth?

Is USG's share price justifiable by its earnings growth? … As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” USG is available at price-to-earnings ratio of 52.09x, showing us it is overvalued compared to the US market average ratio of 18.68x , and overvalued based on current earnings compared to the building industry average of 22.44x. … NYSE:USG PE PEG Gauge Mar 8th 18 We understand USG seems to be overvalued based on its current earnings, compared to its industry peers.

Simply Wall St -

Company Info

Description

USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide. The company’s Gypsum division manufactures and markets gypsum and related products to construct walls and ceilings of residential, nonresidential, and institutional buildings; and agricultural and industrial customers. This segment offers gypsum wallboards and compound portfolios, as well as corner beads, joint tapes, and plasters under the USG Sheetrock brand; glass mat sheathing portfolios under the Securock brand; construction plaster products under the Red Top, Imperial, Diamond, and Supremo brands; and lightweight gypsum panels under the USG Sheetrock brand, as well as ultralight panels, USG Sheetrock brand ecosmart panels, and industrial gypsum. Its Performance Materials division manufactures and markets products for interior and exterior building applications of residential and nonresidential buildings, as well as industrial applications. This segment provides cement boards, backer boards, shower systems, performance floorings, air barrier systems, roof board portfolios, and structural panels under the USG Durock, Fiberock, Levelrock, Securock, ExoAir, Securock, and USG brands. The company’s Ceilings division manufactures and markets ceiling tiles under the Radar, Eclipse, Mars, and Halcyon brands; ceiling grids under the Donn, DX, Fineline, Centricitee, and Identitee DXI brands; specialty ceilings under the Curvatura, Compasso, Radians, Illusions, Multiples, Runways, Barz, Planx, Mirra, Corniche, Wallforms, and Parti brands; and acoustical drywall ceilings under the Ensemble brand. Its USG Boral Building Products division manufactures, distributes, and sells building products, mines raw gypsum, and sells natural and synthetic gypsum under the USG Boral Sheetrock, USG Boral NextGen, Elephant, Jayaboard, Durock, and Donn DX brands. The company was founded in 1902 and is headquartered in Chicago, Illinois.

Details
Name: USG Corporation
USG
Exchange: NYSE
Founded: 1902
$6,091,524,955
140,099,470
Website: http://www.usg.com
Address: USG Corporation
550 West Adams Street,
Chicago,
Illinois, 60661,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE USG Common Stock New York Stock Exchange US USD 07. May 1993
DB US2 Common Stock Deutsche Boerse AG DE EUR 07. May 1993
LSE 0LI3 Common Stock London Stock Exchange GB USD 07. May 1993
Number of employees
Current staff
Staff numbers
7,300
USG employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:46
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.