Owens Corning (OC) AI Stock Analysis

• Market Cap: $8.56B
• Dividend Yield: 2.68%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• 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: 1,708,292
• 30 Day Avg. Volume: 1,378,381
• 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: 2.00
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 17.29
• 1Y Price Target: $143.45
• Price Target Upside: 39.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $112.00 ▲(8.73% Upside)

Owens Corning's overall stock score reflects a combination of strong cash flow and shareholder returns, offset by declining revenue growth, high valuation, and bearish technical indicators. The company's cautious outlook and market challenges further weigh on the score.

Positive Factors

Strong Cash Flow

The company's ability to generate strong cash flow supports its financial flexibility and capacity to invest in growth opportunities, enhancing long-term business sustainability.

Operational Efficiency

Enhancing operational efficiency and cost management strengthens the company's competitive position and improves profitability, ensuring resilience against market fluctuations.

Recognition for Corporate Responsibility

Recognition for corporate responsibility enhances brand reputation and aligns with consumer preferences for sustainable practices, supporting long-term customer loyalty and market position.

Negative Factors

Rising Leverage

Increased leverage can strain financial resources and limit the company's ability to invest in growth, posing risks to long-term financial stability if not managed effectively.

Revenue Decline

A decline in revenue indicates challenges in market demand and competition, which could affect the company's ability to maintain growth and profitability over time.

Goodwill Impairment

Goodwill impairment reflects potential overvaluation of acquired assets, impacting financial statements and indicating challenges in realizing expected business synergies.

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'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	1.68B	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: Negative
• Last Price: 103.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OC, the sentiment is Negative. The current price of 103.01 is below the 20-day moving average (MA) of 121.25, below the 50-day MA of 133.96, and below the 200-day MA of 142.65, indicating a bearish trend. The MACD of -7.91 indicates Positive momentum. The RSI at 18.27 is Positive, neither overbought nor oversold. The STOCH value of 2.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$11.51B	25.25	27.09%	0.50%	2.48%	-6.92%
AWI	73 Outperform	$8.19B	27.20	38.03%	0.67%	15.10%	23.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	61 Neutral	$12.10B	20.37	13.56%	―	-6.44%	-48.84%
MAS	53 Neutral	$13.08B	16.14	―	2.00%	-3.62%	3.41%
OC	51 Neutral	$8.56B	―	-3.27%	2.68%	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.