Owens Corning (OC) AI Stock Analysis

• Market Cap: $9.35B
• Dividend Yield: 2.43%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 3.47%
• EPS Growth: -148.53%
• Country: US
• Employees: 25,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 3.67
• Shares Outstanding: 82,191,740
• 10 Day Avg. Volume: 2,212,351
• 30 Day Avg. Volume: 1,787,418
• PEG Ratio: -0.52
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 11.90
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 17.29
• 1Y Price Target: $143.45
• Price Target Upside: 26.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 12.42
• Revenue Forecast (FY): $10.16B

• Rating: 52 Neutral
• Price Target: $115.00 ▲(1.14% Upside)

Owens Corning's overall stock score reflects significant challenges in financial performance, with declining revenues and profitability. Technical indicators suggest a bearish trend, and valuation concerns are present due to negative earnings. The earnings call provided some positive insights into cash flow and shareholder returns, but market pressures remain a concern.

Positive Factors

Cash Generation

Strong cash flow generation indicates efficient operations and provides the company with the flexibility to invest in growth opportunities and return capital to shareholders, supporting long-term financial health.

Operational Efficiency

Operational efficiencies and cost management improvements enhance profitability and competitiveness, enabling the company to better withstand market pressures and maintain margin sustainability.

Corporate Responsibility

Recognition for corporate responsibility strengthens brand reputation and aligns with increasing consumer and regulatory focus on sustainability, potentially driving customer loyalty and long-term growth.

Negative Factors

Revenue Decline

A decline in revenue reflects challenges in market demand and can impact the company's ability to invest in growth and innovation, potentially affecting its competitive position and long-term profitability.

Goodwill Impairment

Goodwill impairment indicates a reassessment of asset value, potentially reflecting challenges in the business environment or strategic missteps, which could affect future earnings and balance sheet strength.

Challenging Market Conditions

Challenging market conditions in the roofing segment due to external factors like weather can lead to reduced sales and profitability, impacting overall financial performance and strategic planning.

Owens Corning Business Overview & Revenue Model

Company Description

Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and other specialized products. Its products are used in building structures, roofing shingles, tubs and showers, pools, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades applications in the building and construction, renewable energy, and infrastructure markets. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The Insulation segment manufactures and sells insulation products for residential, commercial, industrial, and other markets for thermal and acoustical applications; and glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, cellular glass insulation, and foam insulation products used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors under the Thermafiber, FOAMULAR, FOAMGLAS, Paroc, Owens Corning PINK, and FIBERGLAS Insulation brand names. The Roofing segment manufactures and sells aminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials. This segment sells its products through distributors, home centers, lumberyards, retailers, and contractors, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. Owens Corning was incorporated in 1938 and is headquartered in Toledo, Ohio.

How the Company Makes Money

Owens Corning generates revenue through multiple key streams, primarily from its three business segments. The Insulation segment earns money by selling fiberglass insulation products for residential and commercial applications, capitalizing on the growing demand for energy-efficient building materials. The Roofing segment generates income through the sale of roofing shingles and related products, catering to both new construction and repair markets. The Composites segment profits by providing fiberglass reinforcements and other composite solutions to industries like automotive, aerospace, and wind energy. Significant partnerships with construction firms, contractors, and distributors enhance their market reach. Additionally, Owens Corning's focus on innovation and sustainability allows it to command premium pricing on advanced products, contributing to its overall profitability.

Owens Corning Financial Statement Overview

Summary

Owens Corning's financial performance is mixed. The company shows strong cash flow generation and a solid equity position, but faces challenges with declining revenue growth and profitability margins. Operational inefficiencies need to be addressed to improve financial performance.

Income Statement

Owens Corning's income statement shows a decline in revenue growth with a negative trend in net profit margin for the TTM period. The gross profit margin remains stable, but the EBIT and EBITDA margins have decreased significantly compared to previous years, indicating reduced operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio in the TTM period, suggesting improved financial stability. However, the return on equity has decreased, indicating less effective use of equity to generate profits.

Cash Flow

Cash flow analysis reveals a substantial growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, although the free cash flow to net income ratio suggests that cash flow is not fully translating into net income due to the negative net income in the TTM period.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.80B	10.97B	9.68B	9.76B	8.50B	7.05B
Gross Profit	3.16B	3.29B	2.84B	2.71B	2.22B	1.64B
EBITDA	992.00M	1.75B	2.17B	2.07B	1.91B	341.00M
Net Income	-482.00M	647.00M	1.20B	1.24B	995.00M	-383.00M
Balance Sheet
Total Assets	13.52B	14.07B	11.24B	10.75B	10.02B	9.48B
Cash, Cash Equivalents and Short-Term Investments	294.00M	361.00M	1.61B	1.10B	959.00M	717.00M
Total Debt	5.61B	5.62B	3.27B	3.22B	3.12B	3.28B
Total Liabilities	9.08B	8.96B	6.03B	6.13B	5.68B	5.54B
Stockholders Equity	4.40B	5.08B	5.17B	4.58B	4.30B	3.90B
Cash Flow
Free Cash Flow	1.11B	1.25B	1.19B	1.31B	1.09B	828.00M
Operating Cash Flow	1.87B	1.89B	1.72B	1.76B	1.50B	1.14B
Investing Cash Flow	-713.00M	-3.39B	-356.00M	-623.00M	-377.00M	-205.00M
Financing Cash Flow	-1.35B	334.00M	-877.00M	-974.00M	-881.00M	-358.00M

Owens Corning Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 113.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OC, the sentiment is Neutral. The current price of 113.7 is above the 20-day moving average (MA) of 106.69, below the 50-day MA of 122.08, and below the 200-day MA of 137.76, indicating a neutral trend. The MACD of -3.61 indicates Negative momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OC.

Owens Corning Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	78 Outperform	$8.16B	27.09	38.03%	0.67%	15.10%	23.35%
WMS	76 Outperform	$11.88B	26.05	27.09%	0.46%	2.48%	-6.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	63 Neutral	$12.52B	21.54	13.56%	―	-6.44%	-48.84%
MAS	53 Neutral	$13.08B	16.14	―	1.91%	-3.62%	3.41%
OC	52 Neutral	$9.35B	―	-3.27%	2.43%	3.47%	-148.53%

Owens Corning Corporate Events

Owens Corning’s Mixed Earnings Call Outlook

The recent earnings call for Owens Corning presented a mixed outlook for the company. While the call highlighted solid financial performance and strategic investments, it also underscored significant market challenges that have led to revenue declines and goodwill impairments. The near-term outlook remains cautious, with expectations of continued market pressures affecting the company’s performance.

Owens Corning Reports Strong Q2 2025 Earnings

Owens Corning is a global leader in building products, specializing in sustainable and energy-efficient solutions, with a strong presence in the construction materials sector. The company, headquartered in Toledo, Ohio, has a workforce of over 25,000 employees across 31 countries.

Owens Corning Shines in Earnings Call Amid Challenges

Owens Corning’s recent earnings call conveyed a generally positive sentiment, highlighting the company’s robust operational performance. The firm demonstrated significant achievements, particularly in maintaining high EBITDA margins and achieving revenue growth. However, challenges were noted in the insulation and doors segments, compounded by tariff impacts and a decrease in free cash flow.