Owens Corning (OC) AI Stock Analysis

• Market Cap: $11.89B
• Dividend Yield: 1.97%
• Average Volume (3M): 950.68K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 1.31
• Revenue Growth: 16.16%
• EPS Growth: -77.11%
• Country: US
• Employees: 25,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Construction
• EPS (TTM): 2.97
• Shares Outstanding: 85,052,530
• 10 Day Avg. Volume: 1,046,389
• 30 Day Avg. Volume: 950,684
• 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: 0.87
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 1.31
• 1Y Price Target: $173.10
• Price Target Upside: 25.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $151.00 ▲(9.64%Upside)

Owens Corning's strong financial performance and positive earnings call outlook drive the stock's appeal. However, overvaluation concerns and technical indicators suggest caution. Strategic investments and sustainability recognition are significant positives, yet challenges in residential insulation and market conditions temper expectations.

Positive Factors

Growth Opportunities

OC is seeing share gain opportunities in Doors as it improves service while its largest competitor is under stress.

Operational Efficiency

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

Shareholder Returns

Management has committed to returning $2 billion of cash back to shareholders largely through buybacks, indicating strong commitment to shareholder value.

Negative Factors

Market Skepticism

Some of the goals will be viewed as 'show me' by the Street until proven in a variety of markets, indicating potential skepticism from investors.

Price Fluctuations

Some pressure on insulation prices, with insulation volumes falling 6% and sales falling 5%, could negatively impact financial performance.

Tariff Impact

OC expects a gross tariff impact of $50 million in 2Q, with a net impact after mitigation efforts mostly in the doors segment, potentially impacting profitability.

Owens Corning Business Overview & Revenue Model

Company Description

Owens Corning (OC) is a global leader in the building and construction materials industry, specializing in the production of composite materials, insulation, and roofing products. The company operates through three key segments: Insulation, Roofing, and Composites. Owens Corning provides high-quality materials that improve energy efficiency, offer durability, and enhance aesthetics in residential, commercial, and industrial applications. With a strong commitment to sustainability and innovation, the company serves a diverse customer base across various sectors worldwide.

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
	EBIT
1.13B	1.13B	1.81B	1.71B	1.44B	-138.00M
	EBITDA
1.84B	1.80B	2.28B	2.25B	1.94B	369.00M
	Net Income Common Stockholders
255.00M	647.00M	1.20B	1.24B	995.00M	-383.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
400.00M	361.00M	1.61B	1.10B	959.00M	717.00M
	Total Assets
14.27B	14.07B	11.24B	10.75B	10.02B	9.48B
	Total Debt
6.00B	5.62B	3.27B	3.20B	3.12B	3.23B
	Net Debt
5.60B	5.25B	1.66B	2.10B	2.16B	2.51B
	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: 137.72
• 50DMA: Negative
• 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 137.72 is above the 20-day moving average (MA) of 137.40, below the 50-day MA of 138.69, and below the 200-day MA of 164.83, indicating a neutral trend. The MACD of -0.92 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 77.79 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
CSL	78 Outperform	$16.36B	10.33	33.11%	1.06%	-0.14%	135.52%
OC	70 Outperform	$11.89B	50.18	11.93%	1.97%	16.16%	-77.11%
WMS	70 Neutral	$9.17B	20.53	31.26%	0.61%	1.04%	-10.78%
BLDR	67 Neutral	$12.97B	15.06	19.62%	―	-5.49%	-33.51%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
MAS	65 Neutral	$13.78B	17.85	-118.61%	1.90%	-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.