NYSE:USG

Stock Analysis Report

Executive Summary

USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide.

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has USG's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

NYSE:USG

1.2%

US Building

-0.4%

US Market


1 Year Return

8.5%

NYSE:USG

3.0%

US Building

4.3%

US Market

USG outperformed the Building industry which returned -0% over the past year.

USG matched the United States of America Market (7.6%) over the past year.


Share holder returns

USGIndustryMarket
7 Day0.2%1.2%-0.4%
30 Day0.9%4.2%2.8%
90 Day0.8%9.0%2.7%
1 Year9.8%8.5%4.6%3.0%6.6%4.3%
3 Year55.5%53.7%24.5%14.0%50.9%40.9%
5 Year45.8%44.1%33.4%16.5%55.3%38.2%

Price Volatility Vs. Market

How volatile is USG's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

31.6x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

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

USG is poor value based on expected growth next year.


Price Based on Value of Assets

USG is overvalued based on assets compared to the US Building industry average.


Next Steps

Future Growth

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

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

USG's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

USG's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has USG performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is USG's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Jenny Scanlon (51yo)

2.4yrs

Tenure

US$6,230,823

Compensation

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 Nov ...


CEO Compensation Analysis

Jenny's remuneration is about average for companies of similar size in United States of America.

Jenny's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

54yo

Average Age

The tenure for the USG management team is about average.


Board Age and Tenure

7.9yrs

Average Tenure

61yo

Average Age

The tenure for the USG board of directors is about average.


Insider Trading

USG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$151,37527 Feb 19
Jeanette Press
EntityIndividual
Shares3,500
Max PriceUS$43.25
SellUS$1,075,14327 Nov 18
Matthew Hilzinger
EntityIndividual
Role
Executive VP
Shares25,000
Max PriceUS$43.01
SellUS$1,388,23306 Nov 18
Jennifer Scanlon
EntityIndividual
Role
President
Member of the Board of Directors
Shares32,652
Max PriceUS$42.53
SellUS$431,00330 Jul 18
Dominic Dannessa
EntityIndividual
Role
Executive VP and Chief Customer & Innovation Officer
Shares10,000
Max PriceUS$43.15

Ownership Breakdown


Management Team

  • Jenny Scanlon (51yo)

    President

    • Tenure: 2.4yrs
    • Compensation: $6.23m
  • Matthew Hilzinger (54yo)

    Executive VP

    • Tenure: 6.9yrs
    • Compensation: $2.33m
  • Srinivas Veeramasuneni (53yo)

    VP & Chief Innovation Officer

    • Tenure: 1.4yrs
  • Chris Macey (46yo)

    Senior VP & President of Ceilings

  • Michelle Warner (51yo)

    Senior VP

    • Tenure: 3.3yrs
    • Compensation: $1.37m
  • Greg Salah (55yo)

    Senior VP & President of Gypsum

    • Tenure: 3.1yrs
    • Compensation: $1.70m
  • Brian Cook (60yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 3.6yrs
    • Compensation: $2.37m
  • Bill Madsen

    Senior Director of Investor Relations

  • Dominic Dannessa (61yo)

    Executive VP and Chief Customer & Innovation Officer

    • Tenure: 13.3yrs
    • Compensation: $1.34m
  • Joe Holmes (57yo)

    Senior Vice President of Manufacturing

    • Tenure: 1.4yrs

Board Members

  • Jenny Scanlon (51yo)

    President

    • Tenure: 2.6yrs
    • Compensation: $6.23m
  • Tom Burke (61yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: $200.00k
  • Gretchen Frances Haggerty (62yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: $200.03k
  • Steve Leer (65yo)

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: $336.00k
  • Bill Hernandez (70yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: $222.50k
  • Richard Lavin (66yo)

    Director

    • Tenure: 9.4yrs
    • Compensation: $215.00k
  • José Armario (58yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: $200.53k
  • Matt Carter (57yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: $200.00k
  • Brian Kenney (59yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: $200.03k

Company Information

USG Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: USG Corporation
  • Ticker: USG
  • Exchange: NYSE
  • Founded: 1902
  • Industry: building products
  • Sector: capital goods
  • Market Cap: US$6.092b
  • Shares outstanding: 140.10m
  • Website: Click here

Number of Employees


Location

  • USG Corporation
  • 550 West Adams Street
  • Chicago
  • Illinois
  • 60661
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USGNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1993
US2DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1993
0LI3LSE (London Stock Exchange)YesCommon StockGBUSDMay 1993

Biography

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 cei ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/04/23 23:46
End of Day Share Price2019/04/23 00:00
Earnings2018/12/31
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.