O-I Glass (OI) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -3.36%
• EPS Growth: 11.88%
• Country: US
• Employees: 21,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.53
• Shares Outstanding: 154,073,260
• 10 Day Avg. Volume: 1,380,378
• 30 Day Avg. Volume: 1,407,079
• PEG Ratio: -5.30
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -13.09
• Enterprise Value/Market Cap: 3.48
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 10.73
• 1Y Price Target: $17.17
• Price Target Upside: 30.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 52 Neutral
• Price Target: $13.50 ▲(2.66% Upside)

O-I Glass's overall stock score is primarily influenced by its financial performance, which shows significant challenges with declining revenues and net losses. Technical analysis indicates weak momentum, while valuation metrics suggest potential overvaluation due to negative earnings. The earnings call provided some optimism with increased guidance and cost savings, but these factors were not included in the score calculation due to weight redistribution.

Positive Factors

Cost Savings Initiatives

The Fit to Win program's success in achieving significant cost savings enhances operational efficiency, potentially improving margins and profitability over the long term.

Americas Segment Growth

Growth in the Americas segment, driven by a rebound in key categories like beer and spirits, indicates strong market demand and potential for sustained revenue growth in this region.

Improved Inventory Management

Effective inventory management reduces costs and improves cash flow, contributing to better financial health and operational efficiency over the long term.

Negative Factors

European Market Challenges

Declining shipments in Europe due to supplier delays and economic uncertainties pose risks to revenue and profitability in this key market.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Halted MAGMA Development

Halting MAGMA development suggests challenges in innovation and could impact future growth prospects if new technologies are not effectively developed or implemented.

O-I Glass Business Overview & Revenue Model

Company Description

O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. The company was founded in 1903 and is headquartered in Perrysburg, Ohio.

How the Company Makes Money

O-I Glass generates revenue primarily through the sale of glass containers to clients in the food, beverage, and pharmaceutical sectors. The company operates under a business-to-business (B2B) model, where it enters into contracts with customers for the supply of customized glass packaging solutions. Key revenue streams include direct sales of glass containers, as well as related services such as design and engineering support. Additionally, O-I Glass benefits from long-term partnerships with major global brands, which provide a stable demand for its products. The company also emphasizes sustainability, which enhances its brand value and can lead to increased sales as consumers and businesses increasingly prioritize eco-friendly packaging options. Factors contributing to earnings include operational efficiency, cost management, and innovations in glass manufacturing technology that reduce production costs and improve product quality.

O-I Glass Financial Statement Overview

Summary

O-I Glass faces significant challenges with declining revenues and persistent net losses impacting profitability. The balance sheet shows high leverage, although there are signs of strengthening equity. Cash flow from operations remains a strong point, but overall financial performance requires careful management to improve profitability and reduce debt levels.

Income Statement

O-I Glass has experienced a decline in revenue from the previous year, with the TTM showing a negative revenue growth rate of -0.77%. The gross profit margin stands at 15.46%, which is relatively modest and indicates challenges in maintaining high profitability. Both EBIT and EBITDA margins have decreased, with TTM EBIT and EBITDA margins at 7.65% and 2.62%, respectively. The net profit margin is negative due to a net loss, reflecting ongoing profitability issues.

Balance Sheet

The company's debt-to-equity ratio stands at 2.36, indicating a high level of leverage. However, there has been an improvement in stockholders' equity, which now makes up 23.75% of total assets, suggesting some strengthening of the balance sheet. The return on equity is negative, reflecting the net income losses and indicating challenges in generating returns for shareholders.

Cash Flow

O-I Glass has shown some improvement in cash flow metrics, with positive free cash flow in the TTM, translating to a free cash flow growth rate from the previous year. The operating cash flow to net income ratio is positive, reflecting effective cash conversion despite net losses. However, the free cash flow to net income ratio is negative due to ongoing net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.48B	6.53B	7.11B	6.86B	6.36B	6.09B
Gross Profit	1.00B	1.04B	1.50B	1.21B	1.09B	972.00M
EBITDA	657.00M	859.00M	892.00M	1.44B	949.00M	1.03B
Net Income	-255.00M	-106.00M	-103.00M	584.00M	149.00M	249.00M
Balance Sheet
Total Assets	9.18B	8.65B	9.67B	9.06B	8.83B	8.88B
Cash, Cash Equivalents and Short-Term Investments	487.00M	734.00M	913.00M	773.00M	725.00M	563.00M
Total Debt	5.13B	5.18B	5.17B	4.72B	4.83B	5.14B
Total Liabilities	7.00B	7.45B	7.92B	7.53B	8.01B	8.48B
Stockholders Equity	2.18B	1.08B	1.61B	1.53B	827.00M	401.00M
Cash Flow
Free Cash Flow	114.00M	-128.00M	130.00M	-385.00M	289.00M	146.00M
Operating Cash Flow	493.00M	489.00M	818.00M	154.00M	687.00M	457.00M
Investing Cash Flow	-461.00M	-620.00M	-683.00M	-97.00M	-220.00M	93.00M
Financing Cash Flow	-235.00M	-8.00M	-27.00M	35.00M	-273.00M	-557.00M

O-I Glass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OI, the sentiment is Positive. The current price of 13.15 is above the 20-day moving average (MA) of 12.90, below the 50-day MA of 13.27, and above the 200-day MA of 12.47, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OI.

O-I Glass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRS	72 Outperform	$1.56B	42.14	5.22%	0.42%	6.72%	-6.68%
MYE	68 Neutral	$624.74M	63.31	3.49%	3.23%	1.11%	-74.94%
SON	66 Neutral	$4.33B	-61.77	17.18%	4.78%	0.90%	-118.86%
GEF	63 Neutral	$2.87B	21.81	8.66%	3.67%	-2.55%	-40.81%
SLGN	61 Neutral	$4.55B	15.09	13.59%	1.86%	5.49%	-1.01%
OI	52 Neutral	$2.03B	―	-18.69%	―	-3.36%	11.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%