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Owens Corning (OC)
NYSE:OC
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Owens Corning
(NYSE:OC)
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Rating:52Neutral
Price Target:
$115.00
▼(-6.50% Downside)
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 (OC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.06B
Dividend Yield2.43%
Average Volume (3M)1.15M
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth3.47%
EPS Growth-148.53%
CountryUS
Employees25,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)3.67
Shares Outstanding82,191,740
10 Day Avg. Volume870,966
30 Day Avg. Volume1,148,996
Financial Highlights & Ratios
PEG Ratio-0.52
Price to Book (P/B)2.92
Price to Sales (P/S)1.35
P/FCF Ratio11.90
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit5.43
Enterprise Value/Ebitda17.29
Forecast
1Y Price Target
$135.42Price Target Upside10.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Owens Corning Business Overview & Revenue Model
Company DescriptionOwens 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 MoneyOwens 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook for Owens Corning, with solid financial performance and strategic investments highlighted, but also significant challenges in the market leading to revenue declines and goodwill impairments. The near-term outlook remains cautious, with expectations of continued market pressures.Q3-2025 Updates
Positive Updates
Resilient Financial Performance
Owens Corning delivered $2.7 billion in revenue and $638 million in adjusted EBITDA in Q3 2025, maintaining an adjusted EBITDA margin of 24% despite challenging market conditions.
Strong Cash Flow and Shareholder Returns
The company generated $752 million in free cash flow and returned over $700 million to shareholders through dividends and share repurchases in the first three quarters of 2025.
Operational Efficiency and Cost Management
Owens Corning achieved operational efficiencies and structural improvements, leading to improved margins by over 500 basis points in Roofing and Insulation compared to similar market conditions over the past 10 years.
Recognition for Corporate Responsibility
Owens Corning was named to the 100 Best Corporate Citizens list, ranking third, marking the eighth consecutive year in the top 10 for environmental, social, and governance performance and transparency.
Negative Updates
Revenue Decline
Revenue decreased by 3% year-over-year in Q3 2025 due to lower volumes, with a significant impact from weaker market conditions and lower demand for residential products in North America.
Goodwill Impairment in Doors Business
A non-cash goodwill impairment charge of $780 million was recorded due to updates in macro assumptions affecting the Doors business, despite no change in the long-term view of its earnings potential.
Challenging Roofing Market Conditions
Roofing market demand was impacted by a quiet storm season, leading to no named storms making landfall in the U.S. in Q3, resulting in a significant volume decline expected in Q4.
Insulation Market Pressures
The Insulation business faced a 7% revenue decline in Q3 due to lower demand and the sale of its building materials business in China, with ongoing cost inflation resulting in negative price cost.
Company Guidance
During the Owens Corning third-quarter 2025 earnings call, the company provided detailed guidance highlighting various financial metrics. Owens Corning reported $2.7 billion in revenue and an adjusted EBITDA of $638 million, achieving an adjusted EBITDA margin of 24%. The company also emphasized its strong cash flow, with over $700 million returned to shareholders through dividends and share repurchases in the first three quarters, aligning with its commitment to return $2 billion over this year and next. The roofing segment faced a 2% increase in sales, with a 34% EBITDA margin, despite a 20% decline in the U.S. asphalt shingle market volume due to a quiet storm season. The insulation segment saw a 7% revenue decrease, maintaining a 23% EBITDA margin, impacted by lower North American residential demand. Meanwhile, the doors segment experienced a 5% revenue drop with a 10% EBITDA margin, affected by weaker new construction activity and discretionary spending. Looking ahead, Owens Corning anticipates fourth-quarter revenue in the range of $2.1 billion to $2.2 billion, with an adjusted EBITDA margin of 16% to 18%. The company remains focused on strategic investments to enhance efficiency and growth, maintaining disciplined capital allocation while navigating near-term market challenges.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
Neutral
123.00
Price Trends
111.15
Positive
125.15
Negative
131.75
Negative
Market Momentum
2.07
Negative
64.25
Neutral
91.32
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 123 is above the 20-day moving average (MA) of 114.81, above the 50-day MA of 111.15, and below the 200-day MA of 131.75, indicating a neutral trend. The MACD of 2.07 indicates Negative momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 91.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OC.
Owens Corning Risk Analysis
Owens Corning disclosed 33 risk factors in its most recent earnings report. Owens Corning reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Owens Corning Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.65B | 28.71 | 38.03% | 0.66% | 15.10% | 23.35% | |
74 Outperform | $12.35B | 27.09 | 27.09% | 0.47% | 2.48% | -6.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $13.78B | 23.61 | 13.56% | ― | -6.44% | -48.84% | |
53 Neutral | $14.40B | 17.76 | ― | 1.94% | -3.62% | 3.41% | |
52 Neutral | $10.06B | -21.27 | -3.27% | 2.43% | 3.47% | -148.53% |
* Industrials Sector Average
OC
Owens Corning
122.01
-48.77
-28.56%
AWI
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BLDR
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MAS
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69.85
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WMS
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157.16
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32.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.