Owens Corning (OC) AI Stock Analysis

• Market Cap: $12.20B
• Dividend Yield: 2.01%
• Average Volume (3M): 880.51K
• Price to Earnings (P/E): 51.5
• Beta (1Y): 1.32
• Revenue Growth: 16.16%
• EPS Growth: -77.11%
• Country: US
• Employees: 25,000
• Sector: Industrials
• Sector Strength: 87
• Industry: Construction
• EPS (TTM): 2.97
• Shares Outstanding: 85,052,530
• 10 Day Avg. Volume: 866,028
• 30 Day Avg. Volume: 880,512
• PEG Ratio: 0.20
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.27
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 1.31
• 1Y Price Target: $172.00
• Price Target Upside: 18.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: $153.00 ▲(5.10%Upside)

Owens Corning's strong financial performance and positive earnings call outlook are significant strengths, supporting a robust score. However, high valuation and technical analysis indicators suggest caution. The company's challenges in cost management and leverage also slightly temper the score.

Positive Factors

Market Strategy

Owens Corning's management demonstrates foresight by prioritizing shareholder returns and core business investments over expansion, which is viewed favorably by analysts.

Operational Efficiency

The company has exited lower-margin businesses and reduced its variable manufacturing cost per unit by 10% since 2019.

Shareholder Returns

Management has committed to returning $2 billion of cash back to shareholders, largely through buybacks.

Negative Factors

Insulation Segment Challenges

Some pressure on insulation prices, with insulation volumes falling 6% and sales falling 5%.

Investor Concerns

Investor concerns arise from the wide range of Owens Corning's EBITDA percentage targets in both Roofing and Insulation segments.

Tariff Impact

OC expects a gross tariff impact of $50 million, with a net impact after mitigation efforts mostly in the doors segment.

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 primarily through the manufacturing and sale of its insulation, roofing, and composite products. The Insulation segment offers a wide range of solutions for thermal and acoustical management in residential, commercial, and industrial buildings, contributing significantly to the company's revenue. The Roofing segment provides asphalt roofing shingles and related accessories, which are widely used in residential construction and renovation projects, making it another substantial revenue stream. The Composites segment manufactures glass fiber materials used in various applications, including building, transportation, and industrial sectors, thereby diversifying the company's income sources. Additionally, Owens Corning benefits from strategic partnerships, innovation in product development, and a focus on sustainable practices, which enhance its market position and drive earnings.

Owens Corning Financial Statement Overview

Summary

Owens Corning demonstrates strong revenue growth and operational efficiency. However, challenges in maintaining net profit margins and high leverage levels require attention.

Income Statement

Owens Corning shows strong revenue growth with a 2.1% increase in TTM compared to the previous year. The gross profit margin stands at 29.5%, indicating healthy profitability. However, the net profit margin has declined to 2.3% from the previous period's 5.9%, suggesting some challenges in cost management or extraordinary expenses impacting net income. The EBIT margin is solid at 11.3%, and the EBITDA margin is 14.7%, reflecting robust operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.23, which is relatively high, indicating significant leverage. However, the return on equity (ROE) is 5.2%, which is moderate, suggesting that shareholders are receiving a reasonable return on their investment. The equity ratio stands at 34.2%, showing a balanced approach to asset financing with equity.

Cash Flow

Owens Corning exhibits stable free cash flow generation, although there is a slight decrease in free cash flow growth compared to the previous year. The operating cash flow to net income ratio is strong at 7.1, highlighting effective cash generation from operations. The free cash flow to net income ratio is exceptionally high at 4.4, indicating robust cash conversion despite lower net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.21B	10.97B	9.68B	9.76B	8.50B	7.05B
Gross Profit	3.30B	3.25B	2.68B	2.62B	2.22B	1.61B
EBITDA	1.84B	1.80B	2.28B	2.25B	1.94B	369.00M
Net Income	255.00M	647.00M	1.20B	1.24B	995.00M	-383.00M
Balance Sheet
Total Assets	14.27B	14.07B	11.24B	10.75B	10.02B	9.48B
Cash, Cash Equivalents and Short-Term Investments	400.00M	361.00M	1.61B	1.10B	959.00M	717.00M
Total Debt	6.00B	5.62B	3.27B	3.20B	3.12B	3.23B
Total Liabilities	9.34B	8.96B	6.03B	6.13B	5.68B	5.54B
Stockholders Equity	4.88B	5.08B	5.17B	4.58B	4.30B	3.90B
Cash Flow
Free Cash Flow	1.12B	1.25B	1.19B	1.31B	1.09B	828.00M
Operating Cash Flow	1.82B	1.89B	1.72B	1.76B	1.50B	1.14B
Investing Cash Flow	-3.41B	-3.39B	-356.00M	-623.00M	-377.00M	-205.00M
Financing Cash Flow	832.00M	334.00M	-877.00M	-974.00M	-881.00M	-358.00M

Owens Corning Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.57
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 145.57 is above the 20-day moving average (MA) of 136.42, above the 50-day MA of 138.38, and below the 200-day MA of 163.20, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 60.37 is Neutral, neither overbought nor oversold. The STOCH value of 78.89 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
WMS	74 Outperform	$9.29B	20.78	31.26%	0.63%	1.04%	-10.78%
OC	72 Outperform	$12.20B	51.50	11.93%	2.01%	16.16%	-77.11%
BECN	72 Outperform	$7.72B	25.25	16.54%	―	4.93%	―
BLDR	72 Outperform	$12.93B	14.98	19.62%	―	-5.49%	-33.51%
CSL	72 Outperform	$16.88B	22.54	33.11%	1.07%	-0.14%	11.31%
Sector *	71 Outperform	¥255.26B	12.94	8.49%	3.09%	6.34%	12.95%
MAS	64 Neutral	$14.15B	18.34	-118.61%	1.93%	-2.67%	-10.72%

Owens Corning Corporate Events

Owens Corning Announces Strategic Shift with Reorganization

On February 13, 2025, Owens Corning announced a strategic shift by selling its glass reinforcements business and reorganizing its segments into Roofing, Insulation, and Doors, effective January 1, 2025. This reorganization aims to align with the new operating structure, and the company will report financial results under this new segmentation starting with the first quarter of 2025. The recast financial information for 2024 is provided to enhance investor understanding, though it does not affect previously reported financial metrics.