Owens Corning (OC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Amcor Plc

Avery Dennison Corp.

International Paper Co.

Ball Corp.

Sonoco Products Co.

Packaging Corporation of America

AptarGroup, Inc.

Crown Holdings, Inc.

WestRock Co.

Owens Corning

Graphic Packaging Holding Co.

Why is Owens Corning ?

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At USD 127 MM has Grown at 56.79%
ROCE(HY) Lowest at 12.26%
CASH AND EQV(HY) Lowest at USD 646 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -41.38%, its profits have fallen by -10%

Below par performance in long term as well as near term

Along with generating -41.38% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Owens Corning for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Owens Corning

13.06%

-0.91

37.47%

S&P 500

20.53%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.45%

EBIT Growth (5y)

13.94%

EBIT to Interest (avg)

14.25

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.07

Tax Ratio

31.50%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

22.16%

ROE (avg)

24.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.10

EV to EBIT

9.64

EV to EBITDA

7.11

EV to Capital Employed

1.95

EV to Sales

1.64

PEG Ratio

Dividend Yield

2.07%

ROCE (Latest)

20.27%

ROE (Latest)

27.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.76

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,681 MM

ROCE(HY)

Lowest at -9.5%

DEBT-EQUITY RATIO (HY)

Highest at 157.6 %

RAW MATERIAL COST(Y)

Grown by 20.82% (YoY

CASH AND EQV(HY)

Lowest at USD 633 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.94 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.76 times

PRE-TAX PROFIT(Q)

Lowest at USD 116 MM

NET PROFIT(Q)

Lowest at USD 82.78 MM

Here's what is working for Owens Corning

Dividend per share

Highest at USD 6.76 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

At USD 174 MM has Grown at 72.28%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Owens Corning

Pre-Tax Profit

At USD 116 MM has Fallen at -66.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 82.78 MM has Fallen at -67.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 1,681 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 157.6 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Pre-Tax Profit

Lowest at USD 116 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 82.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 633 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.94 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 20.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales