Owens Corning (OC) AI Stock Analysis

• Market Cap: $13.01B
• Dividend Yield: 1.72%
• Average Volume (3M): 908.21K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 1.34
• Revenue Growth: 13.08%
• EPS Growth: -67.65%
• Country: US
• Employees: 25,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Construction
• EPS (TTM): 4.21
• Shares Outstanding: 83,627,556
• 10 Day Avg. Volume: 1,046,715
• 30 Day Avg. Volume: 908,206
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 5.30
• Enterprise Value/Ebitda: 9.57
• 1Y Price Target: $175.71
• Price Target Upside: 12.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $170.00 ▲(9.26% Upside)

Owens Corning's overall stock score reflects strong earnings performance and positive technical indicators. The company's strategic focus and consistent high margins are significant strengths. However, high valuation and challenges in revenue growth and profitability margins are notable risks.

Positive Factors

Earnings

Owens Corning reported adjusted EPS of $4.21, surpassing the Street consensus of $3.82.

Market Position

Owens Corning is leveraging its shared enterprise playbook and premier contractor engagement model to build upon its market presence.

Shareholder Returns

Management is committed to returning $2 billion or 100% of its free cash flow from 2025 to 2026 to shareholders, viewing its stock as undervalued.

Negative Factors

Insulation Segment

Insulation remains challenged with price cost expected to deteriorate.

Tariffs

Door is Owens Corning's most tariff impacted segment, facing retaliatory tariffs from Canada on U.S.-manufactured products.

Weather Impact

Management sees weather-driven roofing demand as a headwind looking forward to the third quarter.

Owens Corning Business Overview & Revenue Model

Company Description

Owens Corning (OC) is a global leader in insulation, roofing, and fiberglass composite materials. The company operates through three primary business segments: Insulation, Roofing, and Composites. It offers a wide range of products including insulation solutions for residential and commercial buildings, roofing materials, and advanced composite materials used in various industries such as automotive and construction. Owens Corning is dedicated to sustainability and innovation, focusing on energy-efficient products and systems.

How the Company Makes Money

Owens Corning generates revenue primarily through the sale of its core products across the three business segments. The Insulation segment earns revenue from the manufacturing and sale of fiberglass insulation and related products, which are used in both residential and commercial construction. The Roofing segment contributes significantly through the sales of roofing shingles and accessories, catering to the residential market and commercial roofing applications. The Composites segment makes money by providing fiberglass reinforcements and other composite materials for various industrial applications. Additionally, Owens Corning benefits from strategic partnerships with construction and manufacturing companies, enhancing its market reach and product offerings. The company's commitment to sustainable practices and energy-efficient solutions also resonates with environmentally conscious consumers, driving demand and contributing to its overall earnings.

Owens Corning Financial Statement Overview

Summary

Owens Corning shows a stable financial position with strong cash flow generation and a solid equity base. However, challenges in revenue growth and profitability margins, along with increased leverage, highlight areas for improvement.

Income Statement

Owens Corning's income statement shows a mixed performance. The company has maintained a stable gross profit margin around 29%, which is decent for the construction industry. However, the net profit margin has significantly decreased to 2.28% in the TTM, indicating challenges in converting revenue into profit. Revenue growth has been negative recently, with a -3.75% decline in the TTM, which is concerning. EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of approximately 35.65%, indicating a solid financial foundation. However, the debt-to-equity ratio has increased to 1.23 in the TTM, suggesting rising leverage, which could pose risks if not managed carefully. Return on equity has decreased to 6.42%, showing reduced efficiency in generating returns from equity.

Cash Flow

Owens Corning's cash flow statement shows positive trends with a 17.31% growth in free cash flow in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.67, suggesting strong cash conversion. The free cash flow to net income ratio is 0.62, reflecting efficient cash utilization despite a decline in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.16B	10.97B	9.68B	9.76B	8.50B	7.05B
Gross Profit	3.31B	3.29B	2.84B	2.71B	2.22B	1.64B
EBITDA	1.83B	1.75B	2.17B	2.07B	1.91B	341.00M
Net Income	333.00M	647.00M	1.20B	1.24B	995.00M	-383.00M
Balance Sheet
Total Assets	14.48B	14.07B	11.24B	10.75B	10.02B	9.48B
Cash, Cash Equivalents and Short-Term Investments	230.00M	361.00M	1.61B	1.10B	959.00M	717.00M
Total Debt	5.98B	5.62B	3.27B	3.22B	3.12B	3.28B
Total Liabilities	9.28B	8.96B	6.03B	6.13B	5.68B	5.54B
Stockholders Equity	5.16B	5.08B	5.17B	4.58B	4.30B	3.90B
Cash Flow
Free Cash Flow	914.00M	1.25B	1.19B	1.31B	1.09B	828.00M
Operating Cash Flow	1.65B	1.89B	1.72B	1.76B	1.50B	1.14B
Investing Cash Flow	-586.00M	-3.39B	-356.00M	-623.00M	-377.00M	-205.00M
Financing Cash Flow	-1.10B	334.00M	-877.00M	-974.00M	-881.00M	-358.00M

Owens Corning Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 155.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 155.59 is above the 20-day moving average (MA) of 150.77, above the 50-day MA of 145.72, and above the 200-day MA of 155.26, indicating a bullish trend. The MACD of 2.11 indicates Positive momentum. The RSI at 60.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.53 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	80 Outperform	$8.58B	29.37	39.29%	0.62%	15.59%	23.46%
WMS	75 Outperform	$11.54B	26.79	27.68%	0.46%	0.24%	-12.68%
OC	74 Outperform	$13.01B	41.03	12.26%	1.72%	13.08%	-67.65%
MAS	73 Outperform	$15.93B	20.20	-118.61%	1.60%	-2.73%	-8.31%
BLDR	67 Neutral	$16.49B	22.65	17.83%	―	-6.39%	-42.36%
GMS	65 Neutral	$4.20B	42.37	6.97%	―	-1.10%	-57.18%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%

Owens Corning Corporate Events

Owens Corning Roofing President Resigns for New Opportunity

On July 16, 2025, Gunner Smith, President of Roofing at Owens Corning, announced his resignation to pursue another opportunity. He will transition to an executive consultant role on July 21, 2025, and his employment will end on August 8, 2025.