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

Sonoco Products Co.

Amcor Plc

Ball Corp.

Avery Dennison Corp.

Crown Holdings, Inc.

Owens Corning

AptarGroup, Inc.

WestRock Co.

International Paper Co.

Graphic Packaging Holding Co.

Packaging Corporation of America

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

-27.68%

-0.91

37.47%

S&P 500

13.68%

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)

9.63%

EBIT Growth (5y)

20.00%

EBIT to Interest (avg)

14.25

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.09

Tax Ratio

31.50%

Dividend Payout Ratio

33.79%

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

2.80

EV to EBIT

8.82

EV to EBITDA

6.62

EV to Capital Employed

1.85

EV to Sales

1.60

PEG Ratio

Dividend Yield

2.01%

ROCE (Latest)

20.96%

ROE (Latest)

26.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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 7.16

-11What is not working for the Company

INTEREST(9M)

At USD 192 MM has Grown at 27.15%

ROCE(HY)

Lowest at -3.27%

DEBT-EQUITY RATIO (HY)

Highest at 120.8 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 6.41% (YoY

CASH AND EQV(HY)

Lowest at USD 532 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.05 times

EPS(Q)

Lowest at USD -5.92

Here's what is working for Owens Corning

Dividend per share

Highest at USD 7.16 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Owens Corning

Debt-Equity Ratio

Highest at 120.8 % 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

Interest

At USD 192 MM has Grown at 27.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD -5.92

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 532 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 5.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 6.41% (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