Owens Corning (OC) AI Stock Analysis

• Market Cap: $9.85B
• Dividend Yield: 2.43%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• 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: 1,266,548
• 30 Day Avg. Volume: 1,059,563
• 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: 1.58
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: 15.71
• 1Y Price Target: $137.00
• Price Target Upside: 12.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 10.53
• Revenue Forecast (FY): $9.79B

• Rating: 52 Neutral
• Price Target: $127.00 ▲(3.95% 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

Free cash flow & shareholder returns

Owens Corning's strong cash generation (FCF growth 21.23% TTM; operating cash flow to net income 0.70; FCF to net income 0.89) and >$700M returned YTD demonstrate durable internal funding. This gives sustained flexibility for capex, dividends, buybacks, and recession resilience.

Diversified market leadership

Owens Corning's three-segment footprint (Insulation, Roofing, Composites) spreads exposure across residential, commercial, and industrial end markets. Diversification and exposure to energy-efficiency and composites for automotive/wind provide structural demand support and reduce single-market risk.

Operational efficiency & margin resilience

The company achieved an adjusted EBITDA margin of 24% and segment margins (Roofing 34%, Insulation 23%) through structural improvements and cost management. Sustained ability to lift margins under weak volumes indicates lasting operational leverage and durability of profitability enhancements.

Negative Factors

Declining revenue and negative profitability

Revenue contraction (TTM revenue growth -3.24%) alongside a negative net profit margin (-4.46%) and negative ROE (-9.88%) signals persistent earnings pressure. Prolonged top-line decline and losses can erode reinvestment capacity and challenge long-term growth and competitiveness.

Significant goodwill impairment

A $780M goodwill write-down reflects weakened expectations for the Doors business and suggests prior overpayment or deteriorating cash flow assumptions. Large impairments reduce equity cushions and constrain future M&A, dividend policy, and balance-sheet flexibility over the medium term.

Cyclicality and weather-driven demand exposure

Roofing and insulation revenues are materially exposed to residential construction cycles and storm activity; insulation down 7% and shingle volumes fell sharply. This structural demand volatility pressures capacity utilization, pricing, and long-term margin predictability across business cycles.

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 faces challenges with declining revenues and profitability, as evidenced by negative net income and shrinking margins. The balance sheet remains stable with manageable leverage, but the negative return on equity is concerning. Cash flow generation is a bright spot, showing resilience and efficiency in cash management. The company needs to address profitability issues to improve its financial health.

Income Statement

Owens Corning's income statement shows a decline in revenue growth with a negative revenue growth rate of -3.24% in the TTM period. The company also experienced a negative net profit margin of -4.46%, indicating a loss. While the gross profit margin remains relatively stable at 29.22%, the EBIT and EBITDA margins have decreased significantly compared to previous years, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.21 in the TTM period, suggesting manageable leverage. However, the return on equity is negative at -9.88%, indicating inefficiencies in generating returns for shareholders. The equity ratio stands at 32.53%, reflecting a stable capital structure but highlighting potential risks due to the negative ROE.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 21.23% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.70, suggesting strong cash flow relative to earnings. The free cash flow to net income ratio is high at 0.89, reflecting efficient cash conversion despite the net loss.

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: Positive
• Last Price: 122.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OC, the sentiment is Positive. The current price of 122.17 is above the 20-day moving average (MA) of 121.02, above the 50-day MA of 115.10, and below the 200-day MA of 130.89, indicating a neutral trend. The MACD of 1.71 indicates Positive momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OC.

Owens Corning Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	79 Outperform	$7.92B	26.31	38.03%	0.66%	15.10%	23.35%
WMS	74 Outperform	$11.82B	25.94	27.09%	0.47%	2.48%	-6.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	63 Neutral	$12.65B	21.56	13.56%	―	-6.44%	-48.84%
MAS	53 Neutral	$13.73B	16.93	―	1.94%	-3.62%	3.41%
OC	52 Neutral	$9.85B	―	-3.27%	2.43%	3.47%	-148.53%