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OI

O-I Glass NYSE:OI Stock Report

Last Price

US$13.53

Market Cap

US$2.1b

7D

-6.9%

1Y

-10.7%

Updated

09 Aug, 2022

Data

Company Financials +
OI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends0/6

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

Summary of all time highs, changes and price drops for O-I Glass
Historical stock prices
Current Share PriceUS$13.53
52 Week HighUS$17.94
52 Week LowUS$10.64
Beta1.42
1 Month Change0.30%
3 Month Change4.40%
1 Year Change-10.69%
3 Year Change17.24%
5 Year Change-43.48%
Change since IPO28.86%

Recent News & Updates

Aug 07
Is O-I Glass (NYSE:OI) A Risky Investment?

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...

Aug 03

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.

Jul 28

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.

Jul 22
Slowing Rates Of Return At O-I Glass (NYSE:OI) Leave Little Room For Excitement

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

OIUS PackagingUS 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

Is OI's price volatile compared to industry and market?
OI volatility
OI Average Weekly Movement7.9%
Packaging Industry Average Movement5.2%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
190324,000Andres Lopezhttps://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

How do O-I Glass's earnings and revenue compare to its market cap?
OI fundamental statistics
Market CapUS$2.11b
Earnings (TTM)US$461.00m
Revenue (TTM)US$6.67b

4.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OI income statement (TTM)
RevenueUS$6.67b
Cost of RevenueUS$5.50b
Gross ProfitUS$1.17b
Other ExpensesUS$706.00m
EarningsUS$461.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.96
Gross Margin17.51%
Net Profit Margin6.92%
Debt/Equity Ratio348.5%

How did OI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is OI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation 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.

OI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA5.7x
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
The above table shows the PE ratio for OI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.8x
GEF Greif
9.7x13.6%US$3.4b
TRS TriMas
18x26.2%US$1.2b
SLGN Silgan Holdings
13.3x8.7%US$4.9b
ATR AptarGroup
30.4x13.8%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.

OI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.6x
Fair PE Ratio9.3x

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.


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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

1/6

Future 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

5/6

Past 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.


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Financial Health

How is O-I Glass's financial position?

Financial Health Score

3/6

Financial 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

0/6

Dividend 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.


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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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.