NYSE:OI

Stock Analysis Report

Executive Summary

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in Americas, Europe, and Asia Pacific.

Rewards

Trading at 58.9% below its fair value

Earnings are forecast to grow 104.35% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 1.93% is not well covered by earnings



Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Owens-Illinois's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.9%

OI

-0.07%

US Packaging

0.3%

US Market


1 Year Return

-41.2%

OI

17.9%

US Packaging

18.5%

US Market

Return vs Industry: OI underperformed the US Packaging industry which returned 17.9% over the past year.

Return vs Market: OI underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

OIIndustryMarket
7 Day4.9%-0.07%0.3%
30 Day12.9%1.2%1.5%
90 Day-4.9%5.6%5.7%
1 Year-40.3%-41.2%20.8%17.9%21.1%18.5%
3 Year-43.2%-44.1%26.6%18.3%45.9%36.4%
5 Year-56.4%-57.1%49.1%30.4%71.4%52.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Owens-Illinois undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OI ($10.36) is trading below our estimate of fair value ($25.2)

Significantly Below Fair Value: OI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OI is unprofitable, so we can't compare its PE Ratio to the Packaging industry average.

PE vs Market: OI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OI is overvalued based on its PB Ratio (4.8x) compared to the US Packaging industry average (3.4x).


Next Steps

Future Growth

How is Owens-Illinois forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

104.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: OI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OI's is expected to become profitable in the next 3 years.

Revenue vs Market: OI's revenue (2.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: OI's revenue (2.1% 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 very high in 3 years time (40.8%).


Next Steps

Past Performance

How has Owens-Illinois performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OI is currently unprofitable.

Growing Profit Margin: OI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OI is unprofitable, and losses have increased over the past 5 years at a rate of -17.4% per year.

Accelerating Growth: Unable to compare OI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OI is unprofitable, making it difficult to compare its past year earnings growth to the Packaging industry (-18.5%).


Return on Equity

High ROE: OI has a negative Return on Equity (-121.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Owens-Illinois's financial position?


Financial Position Analysis

Short Term Liabilities: OI's short term assets ($2.5B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: OI's short term assets ($2.5B) do not cover its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: OI's debt to equity ratio (1340.6%) is considered high.

Reducing Debt: OI's debt to equity ratio has increased from 193.2% to 1340.6% over the past 5 years.

Debt Coverage: OI's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: OI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: OI has a high level of physical assets or inventory.

Debt Coverage by Assets: OI's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

1.93%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: OI's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: OI's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether OI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if OI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: OI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: OI's dividends in 3 years are forecast to be thoroughly covered by earnings (8.6% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Andres Lopez (56yo)

3.9yrs

Tenure

US$7,500,959

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 Owens-Illinois, Inc. si ...


CEO Compensation Analysis

Compensation vs Market: Andres's total compensation ($USD7.50M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Andres's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

51yo

Average Age

Experienced Management: OI's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

66yo

Average Age

Experienced Board: OI's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,653,26431 Oct 19
Atlantic Investment Management, Inc.
EntityCompany
Shares160,000
Max PriceUS$10.33
BuyUS$18,777,76631 Oct 19
Atlantic Investment Management, Inc.
EntityCompany
Shares1,714,160
Max PriceUS$10.95
BuyUS$122,11006 Aug 19
Carol Dudley-Williams
EntityIndividual
Shares10,000
Max PriceUS$12.21
BuyUS$60,76606 Aug 19
Peter Hellman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$12.15
SellUS$887,15311 Mar 19
Moyano Currarino
EntityIndividual
Role
Chief Technology Officer
Senior VP and Chief Technology & Supply Chain Officer
Shares45,161
Max PriceUS$20.10
SellUS$654,71811 Mar 19
Timothy Connors
EntityIndividual
Shares33,420
Max PriceUS$19.74
SellUS$25,665,51920 Dec 18
Atlantic Investment Management, Inc.
EntityCompany
Shares1,385,902
Max PriceUS$18.52

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Haudrich (51yo)

    Senior VP & CFO

    • Tenure: 0.7yrs
    • Compensation: US$873.41k
  • Andres Lopez (56yo)

    CEO, President & Director

    • Tenure: 3.9yrs
    • Compensation: US$7.50m
  • John Reynolds

    Vice President of Global Accounting

    • Tenure: 4.8yrs
  • Vitaliano Torno (60yo)

    President of O-I Europe

    • Tenure: 3.9yrs
    • Compensation: US$1.71m
  • Moyano Currarino (42yo)

    Senior VP and Chief Technology & Supply Chain Officer

    • Tenure: 7.8yrs
  • Dave Johnson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Kristin Kelley

    Vice President of Global & Corporate Communications

    • Tenure: 0yrs
  • Miguel Alvarez (54yo)

    President of O-I North America

    • Tenure: 5.9yrs
    • Compensation: US$1.58m
  • Mary Wilkinson (46yo)

    Senior VP

    • Tenure: 2.9yrs
  • Arnaud Aujouannet (49yo)

    Senior VP and Chief Sales & Marketing Officer

    • Tenure: 2.2yrs

Board Members

  • Dennis Williams (73yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$237.50k
  • Stasia Kelly (70yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$237.50k
  • Alan Murray (65yo)

    Independent Non Executive Director

    • Tenure: 4.6yrs
    • Compensation: US$253.50k
  • Joe Rupp (69yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$294.47k
  • Peter Hellman (69yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$235.50k
  • Hari Nair (59yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$252.50k
  • Hugh Roberts (67yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$229.50k
  • Gordon Hardie (55yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$227.50k
  • Andres Lopez (56yo)

    CEO, President & Director

    • Tenure: 3.9yrs
    • Compensation: US$7.50m
  • Carol Williams (61yo)

    Independent Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$369.50k

Company Information

Owens-Illinois, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Owens-Illinois, Inc.
  • Ticker: OI
  • Exchange: NYSE
  • Founded: 1903
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: US$1.499b
  • Shares outstanding: 155.63m
  • Website: https://www.o-i.com

Number of Employees


Location

  • Owens-Illinois, Inc.
  • One Michael Owens Way
  • Perrysburg
  • Ohio
  • 43551
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OINYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1991
OILDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1991
OI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1991

Biography

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in Americas, Europe, and Asia Pacific. It produces glass containers for  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:40
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.