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Owens-Illinois

NYSE:OI
Snowflake Description

Moderate growth potential and slightly overvalued.

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

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in Americas, Europe, and Asia Pacific. The last earnings update was 78 days ago. More info.


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OI Share Price and Events
7 Day Returns
1.1%
NYSE:OI
-1.1%
US Packaging
-0.3%
US Market
1 Year Returns
3%
NYSE:OI
5%
US Packaging
3.9%
US Market
OI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Owens-Illinois (OI) 1.1% -1.2% -9.8% 3% -6.2% -48.4%
US Packaging -1.1% 2% 4.3% 5% 24% 25.6%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • OI underperformed the Packaging industry which returned 5% over the past year.
  • OI matched the United States of America Market (3.9%) over the past year.
Price Volatility
OI
Industry
5yr Volatility vs Market

Value

 Is Owens-Illinois 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 Owens-Illinois 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 Owens-Illinois.

NYSE:OI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
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:OI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Packaging Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.817 (1 + (1- 21%) (230.45%))
1.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.874 * 5.96%)
13.9%

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

The calculations below outline how an intrinsic value for Owens-Illinois 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:OI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 13.9%)
2020 335.14 Analyst x9 294.25
2021 388.50 Analyst x4 299.47
2022 431.81 Est @ 11.15% 292.23
2023 469.05 Est @ 8.62% 278.70
2024 501.20 Est @ 6.85% 261.46
2025 529.35 Est @ 5.62% 242.45
2026 554.50 Est @ 4.75% 222.97
2027 577.49 Est @ 4.14% 203.88
2028 598.97 Est @ 3.72% 185.66
2029 619.48 Est @ 3.42% 168.58
Present value of next 10 years cash flows $2,449.64
NYSE:OI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $619.48 × (1 + 2.73%) ÷ (13.9% – 2.73%)
$5,697.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,697.62 ÷ (1 + 13.9%)10
$1,550.53
NYSE:OI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,449.64 + $1,550.53
$4,000.17
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,000.17 / 155.23
$25.77
NYSE:OI Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.77
Current discount Discount to share price of $17.08
= -1 x ($17.08 - $25.77) / $25.77
33.7%

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

Current Discount
Amount off the current price Owens-Illinois is available for.
Intrinsic value
34%
Share price is $17.08 vs Future cash flow value of $25.77
Current Discount Checks
For Owens-Illinois to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Owens-Illinois's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Owens-Illinois's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Owens-Illinois's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Owens-Illinois's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:OI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.79
NYSE:OI Share Price ** NYSE (2019-07-19) in USD $17.08
United States of America Packaging Industry PE Ratio Median Figure of 15 Publicly-Listed Packaging Companies 17.67x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

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

** Primary Listing of Owens-Illinois.

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

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

= 17.08 ÷ 0.79

21.59x

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

  • Owens-Illinois is overvalued based on earnings compared to the US Packaging industry average.
  • Owens-Illinois is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Owens-Illinois's expected growth come at a high price?
Raw Data
NYSE:OI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
18.4%per year
United States of America Packaging Industry PEG Ratio Median Figure of 15 Publicly-Listed Packaging Companies 1.38x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.59x ÷ 18.4%

1.17x

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

  • Owens-Illinois is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Owens-Illinois's assets?
Raw Data
NYSE:OI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.72
NYSE:OI Share Price * NYSE (2019-07-19) in USD $17.08
United States of America Packaging Industry PB Ratio Median Figure of 20 Publicly-Listed Packaging Companies 3.82x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NYSE:OI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 17.08 ÷ 5.72

2.99x

* Primary Listing of Owens-Illinois.

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

  • Owens-Illinois is good value based on assets compared to the US Packaging industry average.
X
Value checks
We assess Owens-Illinois'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 Packaging 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 Packaging industry average (and greater than 0)? (1 check)
  5. Owens-Illinois has a total score of 2/6, 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 Owens-Illinois expected to perform in the next 1 to 3 years based on estimates from 12 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
18.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Owens-Illinois expected to grow at an attractive rate?
  • Owens-Illinois's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Owens-Illinois's earnings growth is expected to exceed the United States of America market average.
  • Owens-Illinois's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:OI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:OI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 18.4%
NYSE:OI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 2%
United States of America Packaging Industry Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Packaging Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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:OI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:OI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,535 1
2022-12-31 7,424 1
2021-12-31 7,101 872 449 6
2020-12-31 7,021 763 428 12
2019-12-31 6,889 782 409 12
NYSE:OI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 6,779 566 125
2018-12-31 6,877 791 144
2018-09-30 6,954 782 135
2018-06-30 7,011 726 143
2018-03-31 6,990 688 232
2017-12-31 6,869 721 183
2017-09-30 6,799 568 246
2017-06-30 6,720 705 229
2017-03-31 6,729 716 197
2016-12-31 6,702 751 216
2016-09-30 6,686 725 294
2016-06-30 6,540 610 201

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Owens-Illinois's earnings are expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).
  • Owens-Illinois's revenue is expected to grow by 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:OI 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 12 Analyst Estimates (S&P Global) See Below

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

NYSE:OI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 3.19 3.40 2.98 2.00
2020-12-31 2.90 3.20 2.43 5.00
2019-12-31 2.65 2.85 2.21 5.00
NYSE:OI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.79
2018-12-31 0.90
2018-09-30 0.84
2018-06-30 0.88
2018-03-31 1.42
2017-12-31 1.12
2017-09-30 1.51
2017-06-30 1.41
2017-03-31 1.21
2016-12-31 1.33
2016-09-30 1.82
2016-06-30 1.25

*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.
  • Owens-Illinois is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Owens-Illinois'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.
Owens-Illinois has a total score of 3/6, 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 Owens-Illinois 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 Owens-Illinois's growth in the last year to its industry (Packaging).
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.
  • Owens-Illinois's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Owens-Illinois's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Owens-Illinois's 1-year earnings growth is negative, it can't be compared to the US Packaging industry average.
Earnings and Revenue History
Owens-Illinois'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 Owens-Illinois Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:OI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 6,779.00 125.00 546.00 70.00
2018-12-31 6,877.00 144.00 557.00 70.00
2018-09-30 6,954.00 135.00 507.00 64.00
2018-06-30 7,011.00 143.00 512.00 62.00
2018-03-31 6,990.00 232.00 709.00 61.00
2017-12-31 6,869.00 183.00 702.00 60.00
2017-09-30 6,799.00 246.00 490.00 63.00
2017-06-30 6,720.00 229.00 491.00 64.00
2017-03-31 6,729.00 197.00 493.00 65.00
2016-12-31 6,702.00 216.00 601.00 65.00
2016-09-30 6,686.00 294.00 500.00 66.00
2016-06-30 6,540.00 201.00 488.00 65.00
2016-03-31 6,323.00 136.00 481.00 64.00
2015-12-31 6,156.00 139.00 476.00 64.00
2015-09-30 6,133.00 21.00 492.00 62.00
2015-06-30 6,312.00 64.00 501.00 62.00
2015-03-31 6,566.00 156.00 514.00 63.00
2014-12-31 6,784.00 187.00 523.00 63.00
2014-09-30 6,942.00 153.00 511.00 64.00
2014-06-30 6,981.00 224.00 512.00 64.00
2014-03-31 6,965.00 225.00 510.00 62.00
2013-12-31 6,967.00 335.00 506.00 62.00
2013-09-30 6,954.00 184.00 522.00 62.00
2013-06-30 6,917.00 144.00 534.00 60.00
2013-03-31 6,902.00 143.00 544.00 62.00
2012-12-31 7,000.00 186.00 555.00 62.00
2012-09-30 7,070.00 -426.00 540.00 64.00

*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.
  • Owens-Illinois has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Owens-Illinois used its assets less efficiently than the US Packaging industry average last year based on Return on Assets.
  • Owens-Illinois's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Owens-Illinois'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 Packaging 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.
Owens-Illinois has a total score of 1/6, 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 Owens-Illinois'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 Owens-Illinois's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Owens-Illinois is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Owens-Illinois's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Owens-Illinois'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 0.4x 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 Owens-Illinois Company Filings, last reported 3 months ago.

NYSE:OI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,010.00 5,868.00 326.00
2018-12-31 900.00 5,296.00 512.00
2018-09-30 1,067.00 5,650.00 440.00
2018-06-30 899.00 5,676.00 365.00
2018-03-31 1,119.00 5,849.00 418.00
2017-12-31 927.00 5,293.00 492.00
2017-09-30 939.00 5,626.00 339.00
2017-06-30 779.00 5,742.00 335.00
2017-03-31 616.00 5,627.00 312.00
2016-12-31 363.00 5,328.00 492.00
2016-09-30 515.00 5,595.00 294.00
2016-06-30 458.00 5,854.00 334.00
2016-03-31 416.00 5,901.00 239.00
2015-12-31 279.00 5,573.00 399.00
2015-09-30 878.00 5,859.00 270.00
2015-06-30 1,095.00 3,772.00 378.00
2015-03-31 1,028.00 3,621.00 257.00
2014-12-31 771.00 3,445.00 512.00
2014-09-30 1,823.00 3,501.00 264.00
2014-06-30 1,922.00 3,647.00 194.00
2014-03-31 1,760.00 3,702.00 201.00
2013-12-31 1,603.00 3,567.00 383.00
2013-09-30 1,377.00 3,664.00 219.00
2013-06-30 1,194.00 3,773.00 249.00
2013-03-31 1,155.00 3,897.00 359.00
2012-12-31 1,055.00 3,773.00 431.00
2012-09-30 1,436.00 3,893.00 336.00
  • Owens-Illinois's level of debt (585.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (210.1% vs 585.2% today).
  • Debt is not well covered by operating cash flow (9.6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Owens-Illinois'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. Owens-Illinois has a total score of 1/6, 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 Owens-Illinois'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
1.17%
Current annual income from Owens-Illinois dividends. Estimated to be 1.2% next year.
If you bought $2,000 of Owens-Illinois shares you are expected to receive $23 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?
  • Owens-Illinois's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Owens-Illinois's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).
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:OI 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 12 Analyst Estimates (S&P Global) See Below
United States of America Packaging Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 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 3.7%

Industry and Market average data is calculated daily.

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

NYSE:OI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.21 4.00
2020-12-31 0.20 6.00
2019-12-31 0.20 6.00
NYSE:OI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 0.200 1.170
2018-11-14 0.200 1.067

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

  • It is too early to tell whether Owens-Illinois has stable dividend payments.
  • Owens-Illinois only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Owens-Illinois's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (15.7x coverage).
X
Income/ dividend checks
We assess Owens-Illinois'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 Owens-Illinois afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Owens-Illinois has a total score of 2/6, 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 Owens-Illinois'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
Andres Lopez
COMPENSATION $7,500,959
AGE 56
TENURE AS CEO 3.5 years
CEO Bio

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. since January 1, 2016. He served as the Chief Operating Officer and President of Glass Containers at Owens-Illinois, Inc. from February 1, 2015 to December 31, 2015. He has been with the Owens Illinois Group since 1986. Mr. Lopez served as the President of O-I America at Owens-Illinois, Inc. from August 2014 to February 1, 2015. He served as Vice President and President of O-I South America at Owens-Illinois, Inc. from April 21, 2009 to 2014. He has also served as President of O-I’s Latin America operations from 2009 to 2015. He served as a Vice President of O-I's global manufacturing and engineering (GMEC) business unit since 2006 until 2009. In 1999, he served as a General Manager of O-I Peru, he led a successful acquisition and consolidation of that country's glass container business. He began his career with Owens-Illinois as a manufacturing engineer. In 2004, he moved to the Company’s headquarters in Ohio to serve as Vice President of Finance and Administration for the North America region, becoming Vice President of Manufacturing for North America in 2005. Mr. Lopez held a number of other manufacturing assignments before 2005. He has more than 30 years’ experience in the global markets for food, beverage and pharmaceutical packaging. He is a leader with a proven track record and deep global expertise and understanding of customer needs in the packaging industry. He has been an Independent Director of Avery Dennison Corporation since February 1, 2017. In 1996, he moved to Brazil, first serving as Plant Manager for the Rio de Janeiro plant, and then for the São Paulo plant. Mr. Lopez began his career at Owens-Illinois as an Engineer at one of the Colombian plants. Mr. Lopez has been Director of Owens-Illinois, Inc. since May 26, 2016. He holds a Bachelor of Science degree in Production Engineering from Colombia’s Universidad EAFIT and completed the Executive Education Program at Stanford University. He speaks English and Portuguese.

CEO Compensation
  • Andres's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andres's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Owens-Illinois management team in years:

3.5
Average Tenure
51
Average Age
  • The tenure for the Owens-Illinois management team is about average.
Management Team

Andres Lopez

TITLE
CEO, President & Director
COMPENSATION
$8M
AGE
56
TENURE
3.5 yrs

Vitaliano Torno

TITLE
President of O-I Europe
COMPENSATION
$2M
AGE
60
TENURE
3.5 yrs

Miguel Alvarez

TITLE
President of O-I North America
COMPENSATION
$2M
AGE
54
TENURE
5.5 yrs

John Haudrich

TITLE
Senior VP & CFO
COMPENSATION
$873K
AGE
51
TENURE
0.3 yrs

John Reynolds

TITLE
Vice President of Global Accounting
TENURE
4.4 yrs

Moyano Currarino

TITLE
Senior VP and Chief Technology & Supply Chain Officer
AGE
42
TENURE
7.3 yrs

Dave Johnson

TITLE
Vice President of Investor Relations

Mary Wilkinson

TITLE
Senior VP
AGE
46
TENURE
2.5 yrs

Kristin Kelley

TITLE
Vice President of Global & Corporate Communications

Arnaud Aujouannet

TITLE
Senior VP and Chief Sales & Marketing Officer
AGE
49
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Owens-Illinois board of directors in years:

5
Average Tenure
66
Average Age
  • The tenure for the Owens-Illinois board of directors is about average.
Board of Directors

Carol Williams

TITLE
Chairman of the Board
COMPENSATION
$370K
AGE
61
TENURE
3.2 yrs

Andres Lopez

TITLE
CEO, President & Director
COMPENSATION
$8M
AGE
56
TENURE
3.2 yrs

Stasia Kelly

TITLE
Independent Director
COMPENSATION
$238K
AGE
70
TENURE
17.5 yrs

Hari Nair

TITLE
Independent Director
COMPENSATION
$253K
AGE
59
TENURE
5.9 yrs

Gordon Hardie

TITLE
Independent Director
COMPENSATION
$228K
AGE
55
TENURE
4.2 yrs

Alan Murray

TITLE
Independent Non Executive Director
COMPENSATION
$254K
AGE
65
TENURE
4.2 yrs

Joe Rupp

TITLE
Director
COMPENSATION
$294K
AGE
69
TENURE
1.8 yrs

Dennis Williams

TITLE
Independent Director
COMPENSATION
$238K
AGE
73
TENURE
13.8 yrs

Peter Hellman

TITLE
Independent Director
COMPENSATION
$236K
AGE
69
TENURE
12.3 yrs

Hugh Roberts

TITLE
Independent Director
COMPENSATION
$230K
AGE
67
TENURE
11.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 19 Sell Moyano Currarino Individual 07. Mar 19 07. Mar 19 -45,161 $20.10 $-887,153
11. Mar 19 Sell Timothy Connors Individual 07. Mar 19 07. Mar 19 -33,420 $19.74 $-654,718
20. Dec 18 Sell Atlantic Investment Management, Inc. Company 07. Nov 18 20. Dec 18 -1,385,902 $18.52 $-25,665,519
20. Dec 18 Buy Atlantic Investment Management, Inc. Company 31. Oct 18 06. Dec 18 620,100 $17.44 $10,811,940
31. Oct 18 Sell Atlantic Investment Management, Inc. Company 01. Oct 18 17. Oct 18 -788,550 $19.33 $-15,051,604
14. Sep 18 Sell Atlantic Investment Management, Inc. Company 25. Jul 18 24. Aug 18 -200,559 $18.75 $-3,703,258
14. Sep 18 Buy Atlantic Investment Management, Inc. Company 23. Aug 18 30. Aug 18 190,974 $18.05 $3,426,189
X
Management checks
We assess Owens-Illinois'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. Owens-Illinois 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

Should You Be Tempted To Sell Owens-Illinois, Inc. (NYSE:OI) Because Of Its P/E Ratio?

Check out our latest analysis for Owens-Illinois How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Owens-Illinois: P/E of 21.44 = $16.96 ÷ $0.79 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Why Owens-Illinois, Inc.’s (NYSE:OI) Return On Capital Employed Looks Uninspiring

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Owens-Illinois: 0.077 = US$640m ÷ (US$10b - US$1.9b) (Based on the trailing twelve months to March 2019.) So, Owens-Illinois has an ROCE of 7.7%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Could Owens-Illinois, Inc. (NYSE:OI) Have The Makings Of Another Dividend Aristocrat?

(NYSE:OI) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. Owens-Illinois has only been paying a dividend for a year or so, so investors might be curious about its 1.2% yield. The company also bought back stock during the year, equivalent to approximately 6.0% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Are Investors Undervaluing Owens-Illinois, Inc. (NYSE:OI) By 40%?

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $298.75 $319.04 $404.33 $474.44 $535.90 $588.89 $634.48 $674.05 $709.00 $740.54 Growth Rate Estimate Source Analyst x8 Analyst x8 Analyst x3 Est @ 17.34% Est @ 12.96% Est @ 9.89% Est @ 7.74% Est @ 6.24% Est @ 5.19% Est @ 4.45% Present Value ($, Millions) Discounted @ 13.85% $262.40 $246.13 $273.98 $282.37 $280.15 $270.39 $255.88 $238.77 $220.59 $202.37 Present Value of 10-year Cash Flow (PVCF)= $2.53b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … NYSE:OI Intrinsic value, June 15th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Did You Manage To Avoid Owens-Illinois's (NYSE:OI) Painful 52% Share Price Drop?

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). … Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Simply Wall St -

Does Owens-Illinois, Inc. (NYSE:OI) Have A Particularly Volatile Share Price?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … It's notable when large companies to have high beta values, because it usually takes substantial capital flows to move their share prices. … What this means for you: Since Owens-Illinois has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Should You Worry About Owens-Illinois, Inc.'s (NYSE:OI) CEO Pay?

In 2016 Andres Lopez was appointed CEO of Owens-Illinois, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Andres Lopez's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Owens-Illinois, Inc. (NYSE:OI) Potentially Undervalued?

saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Owens-Illinois’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Don't Sell Owens-Illinois, Inc. (NYSE:OI) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Owens-Illinois, Inc.'s (NYSE:OI) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Do Owens-Illinois, Inc.’s (NYSE:OI) Returns Compare To Its Industry?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Company Info

Description

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 alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. The company is also involved in the production of glass packaging for various food items, soft drinks, teas, juices, and pharmaceuticals. It offers glass containers in a range of sizes, shapes, and colors. The company sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. Owens-Illinois, Inc. was founded in 1903 and is headquartered in Perrysburg, Ohio.

Details
Name: Owens-Illinois, Inc.
OI
Exchange: NYSE
Founded: 1903
$2,651,337,964
155,230,560
Website: http://www.o-i.com
Address: Owens-Illinois, Inc.
One Michael Owens Way,
Perrysburg,
Ohio, 43551,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE OI Common Stock New York Stock Exchange US USD 11. Dec 1991
DB OIL Common Stock Deutsche Boerse AG DE EUR 11. Dec 1991
Number of employees
Current staff
Staff numbers
26,500
Owens-Illinois employees.
Industry
Metal and Glass Containers
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:44
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
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.