| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
OI Stock Overview
O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific.
O-I Glass Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$13.53 |
| 52 Week High | US$17.94 |
| 52 Week Low | US$10.64 |
| Beta | 1.42 |
| 1 Month Change | 0.30% |
| 3 Month Change | 4.40% |
| 1 Year Change | -10.69% |
| 3 Year Change | 17.24% |
| 5 Year Change | -43.48% |
| Change since IPO | 28.86% |
Recent News & Updates
Is O-I Glass (NYSE:OI) A Risky Investment?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
O-I Glass: Executing According To Plan - Ignore The Panic Selling
O-I Glass is one of the largest producers of glass containers in the world. The market appears rattled by the weak Q4 guidance, although a very strong Q4 2021 makes it difficult to compare. The cash flow guidance was increased and the capex (including growth) is fully funded by the incoming cash flows. The thesis remains standing, and the net debt should continue to move down even including growth investments. Introduction Sometimes it's difficult to please everyone. O-I Glass (OI) beat the Q2 EPS consensus, raised its full-year guidance but was rewarded by the market with a high single-digit percentage drop. Why? I think a comment on the Q4 EPS caused some worries, but I think these are unfounded. OI data by YCharts So far, so good: the cash flow is pouring in, and the balance sheet is getting safer In my previous article I made the argument we wouldn't see the net debt decrease as O-I was planning on funding the Paddock asbestos scheme. This only occurred in July so the balance sheet as of the end of Q2 still reflects the Paddock liability of $625M and I will just add this to the financial debt. The company reported an excellent net income result in the second quarter of the year, but investors were warned the $1.62 net income per share is not representative as it was boosted by a $168M 'other income' (mainly caused by a sale and leaseback transaction) which basically doubled the pre-tax income. On an adjusted basis, O-I Glass reported an EPS of $0.73. OI Investor Relations The income statement above is just to show where the starting point in the cash flow statement is coming from as my entire investment thesis for O-I Glass is based on free cash flow. And as you can see below, a total of $182M was deducted from the net earnings as that was a non-cash income. The reported operating cash flow was $193M and approximately $194M after isolating the changes in the working capital position, pension payments and cash restructuring payments. OI Investor Relations As you can see above, there also is a $26M payment to non-controlling interests. This is not a normal quarterly payment so it wouldn't be correct to take 100% of this payment into consideration in the Q2 cash flows. If I would use an average cash outflow of $10M per quarter related to this, the adjusted operating cash flow would come in at $184M. With a total capex of $103M (excluding contributions to JVs), the free cash flow was $81M. With approximately 155.6M shares outstanding, the free cash flow result was approximately $0.52. Keep in mind O-I will ramp up its capex in the second semester as the company is still guiding for a total capex of approximately $600M. $225M of this amount is an investment in growth (new production lines will come online in H1 2023 while O-I is kicking off the development of the MAGMA process with a Kentucky-based investment). This means the sustaining capex is only $375M. The full-year guidance calls for a reported free cash flow of $175M and a sustaining free cash flow of $400M after adding back the growth-related capex. OI Investor Relations The $225M in growth investments is part of a bigger plan to spend $630M on growth capex in the 2022-2024 era, which works out to be approximately $210M per year. That's a lower amount than originally guided for as it looks like the MAGMA greenfield additions have been scaled back from 'up to 11' to just two. I'm not too worried about that at this point as it is likely the additional MAGMA-related investments will just fall outside of the 2022-2024 scope. The first MAGMA Generation 2 site will only start up in the summer of 2024 and I think the reduction from 'up to 11' to 2 is just a timing issue. Meanwhile, it will give O-I Glass more time to fully repair its balance sheet. OI Investor Relations As of the end of June, O-I had $661M in cash, $65M in short-term debt and $5.05B in long-term debt (including the Paddock liability). The total net financial debt is approximately $4.45B and $4.6B including the unfunded pension liabilities. With an LTM EBITDA of $1.16B, the debt ratio currently stands at 4 times EBITDA and this should enable O-I to indeed end the year with a net debt versus EBITDA ratio in the 'high three' range. OI Investor Relations So why did the market panic despite the guidance increase? Although the press release only contained a Q3 EPS guidance, investors were able to put 1 and 1 together. If the adjusted EPS was $0.56 in Q1 and $0.73 for Q2 and assuming a Q3 EPS of $0.55, the implied adjusted EPS in the first three quarters of the year already is $1.84. So even though the full-year guidance was hiked to $2.05-2.20 per share, this implies the Q4 EPS was estimated at $0.21-0.36 per share. A typo? Not really. On the Q2 conference call, management confirmed it expects a Q4 adjusted EPS of $0.20-0.30 per share. There are two reasons for this. First of all, Q4 is a seasonal low. That's not new. The majority of the demand and deliveries in North America and Europe occur in Q2 and Q3. Q4 is a good quarter in South America but that is only a relatively small market for O-I Glass.
O-I Glass to build new glass plant in Kentucky to serve its premium spirits category
O-I Glass (NYSE:OI) on Thursday said it would build a new glass plant in Bowling Green, Kentucky that would serve its premium spirits category. OI said it had plans to invest up to $240M in multiple expansion waves over time and create about 140 new jobs in the region. Perrysburg, Ohio-based O-I (OI) is a manufacturer of glass jars and bottles for a wide category of products including vials used in healthcare and glass containers for alcoholic beverages. Start of the first production line at the new Kentucky plant is expected in mid-2024, followed by up to two more production lines, OI said. OI stock earlier closed +1.1% at $14.19.
Slowing Rates Of Return At O-I Glass (NYSE:OI) Leave Little Room For Excitement
What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...
Shareholder Returns
| OI | US Packaging | US Market | |
|---|---|---|---|
| 7D | -6.9% | -4.0% | 0.3% |
| 1Y | -10.7% | -16.9% | -13.5% |
Return vs Industry: OI exceeded the US Packaging industry which returned -15.4% over the past year.
Return vs Market: OI exceeded the US Market which returned -13% over the past year.
Price Volatility
| OI volatility | |
|---|---|
| OI Average Weekly Movement | 7.9% |
| Packaging Industry Average Movement | 5.2% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.2% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: OI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: OI's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1903 | 24,000 | Andres Lopez | https://www.o-i.com |
O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals.
O-I Glass Fundamentals Summary
| OI fundamental statistics | |
|---|---|
| Market Cap | US$2.11b |
| Earnings (TTM) | US$461.00m |
| Revenue (TTM) | US$6.67b |
4.6x
P/E Ratio0.3x
P/S RatioIs OI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OI income statement (TTM) | |
|---|---|
| Revenue | US$6.67b |
| Cost of Revenue | US$5.50b |
| Gross Profit | US$1.17b |
| Other Expenses | US$706.00m |
| Earnings | US$461.00m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.96 |
| Gross Margin | 17.51% |
| Net Profit Margin | 6.92% |
| Debt/Equity Ratio | 348.5% |
How did OI perform over the long term?
See historical performance and comparisonValuation
Is OI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for OI?
Other financial metrics that can be useful for relative valuation.
| What is OI's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$2.11b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.9x |
| Enterprise Value/EBITDA | 5.7x |
| PEG Ratio | -0.4x |
Price to Earnings Ratio vs Peers
How does OI's PE Ratio compare to its peers?
| OI PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 17.8x | ||
GEF Greif | 9.7x | 13.6% | US$3.4b |
TRS TriMas | 18x | 26.2% | US$1.2b |
SLGN Silgan Holdings | 13.3x | 8.7% | US$4.9b |
ATR AptarGroup | 30.4x | 13.8% | US$7.0b |
OI O-I Glass | 4.6x | -12.7% | US$2.1b |
Price-To-Earnings vs Peers: OI is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (17.8x).
Price to Earnings Ratio vs Industry
How does OI's PE Ratio compare vs other companies in the North American Packaging Industry?
Price-To-Earnings vs Industry: OI is good value based on its Price-To-Earnings Ratio (4.6x) compared to the US Packaging industry average (14x)
Price to Earnings Ratio vs Fair Ratio
What is OI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 4.6x |
| Fair PE Ratio | 9.3x |
Price-To-Earnings vs Fair Ratio: OI is good value based on its Price-To-Earnings Ratio (4.6x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).
Share Price vs Fair Value
What is the Fair Price of OI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: OI ($13.53) is trading below our estimate of fair value ($24.32)
Significantly Below Fair Value: OI is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Future Growth
How is O-I Glass forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-12.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OI's earnings are forecast to decline over the next 3 years (-12.7% per year).
Earnings vs Market: OI's earnings are forecast to decline over the next 3 years (-12.7% per year).
High Growth Earnings: OI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: OI's revenue (2.2% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: OI's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OI's Return on Equity is forecast to be high in 3 years time (25.7%)
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Past Performance
How has O-I Glass performed over the past 5 years?
Past Performance Score
5/6Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
4.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OI has high quality earnings.
Growing Profit Margin: OI's current net profit margins (6.9%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: OI's earnings have grown by 4.2% per year over the past 5 years.
Accelerating Growth: OI's earnings growth over the past year (43.6%) exceeds its 5-year average (4.2% per year).
Earnings vs Industry: OI earnings growth over the past year (43.6%) exceeded the Packaging industry 9.3%.
Return on Equity
High ROE: Whilst OI's Return on Equity (40.51%) is outstanding, this metric is skewed due to their high level of debt.
Discover strong past performing companies
Financial Health
How is O-I Glass's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: OI's short term assets ($2.6B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: OI's short term assets ($2.6B) do not cover its long term liabilities ($5.8B).
Debt to Equity History and Analysis
Debt Level: OI's net debt to equity ratio (295.9%) is considered high.
Reducing Debt: OI's debt to equity ratio has reduced from 735.3% to 348.5% over the past 5 years.
Debt Coverage: OI's debt is not well covered by operating cash flow (15.1%).
Interest Coverage: OI's interest payments on its debt are well covered by EBIT (3.5x coverage).
Balance Sheet
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Dividend
What is O-I Glass's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
0.42%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate OI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate OI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if OI's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if OI's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: OI is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as OI has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Andres Lopez (59 yo)
6.58yrs
Tenure
US$10,794,495
Compensation
Mr. Andres Alberto Lopez serves as the Chairman of the Board and Chief Executive Officer of Owens Illinois Group Inc. Mr. Lopez has been the Chief Executive Officer and President of O-I Glass, Inc. (former...
CEO Compensation Analysis
Compensation vs Market: Andres's total compensation ($USD10.79M) is above average for companies of similar size in the US market ($USD5.45M).
Compensation vs Earnings: Andres's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: OI's management team is considered experienced (4.2 years average tenure).
Board Members
Experienced Board: OI's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
O-I Glass, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: O-I Glass, Inc.
- Ticker: OI
- Exchange: NYSE
- Founded: 1903
- Industry: Metal and Glass Containers
- Sector: Materials
- Implied Market Cap: US$2.107b
- Shares outstanding: 155.72m
- Website: https://www.o-i.com
Number of Employees
Location
- O-I Glass, Inc.
- One Michael Owens Way
- Plaza 2
- Perrysburg
- Ohio
- 43551-2999
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/09 00:00 |
| End of Day Share Price | 2022/08/09 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.