Owens Corning [NYSE:OC]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Owens Corning [OC] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give OC an Outperform rating. Its stock price has been found in the range of 11.30 to 52.43. This is compared to its latest closing price of $53.03.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Owens Corning [OC] is sitting at 2.42. This is compared to 1 month ago, when its average rating was 2.37.
For the quarter ending in Sep-18 Owens Corning [OC] generated $1.82 billion in sales. That’s 3.95% lower than the average estimate of $1.89 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 20 Feb (In 8 Days).
Fundamental Analysis of Owens Corning [OC]
Now let’s turn to look at profitability: with a current Operating Margin for Owens Corning [OC] sitting at +14.05 and its Gross Margin at +25.00, this company’s Net Margin is now 5.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 14.23, and its Return on Invested Capital has reached 7.30%. Its Return on Equity is 7.22, and its Return on Assets is 3.53. These metrics suggest that this Owens Corning does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Owens Corning [OC] has generated a Total Debt to Total Equity ratio of 57.90. Similarly, its Total Debt to Total Capital is 36.67, while its Total Debt to Total Assets stands at 27.92. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 57.78, and its Long-Term Debt to Total Capital is 36.59. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 6.18 and its Total Debt to EBITDA Value is 1.90. The Enterprise Value to Sales for this firm is now 1.13, and its Total Debt to Enterprise Value stands at 0.19. Owens Corning [OC] has a Price to Book Ratio of 2.46, a Price to Cash Flow Ratio of 10.24 and P/E Ratio of 16.48. These metrics all suggest that Owens Corning is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Owens Corning [OC] earns $375,529 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.60 and its Total Asset Turnover is 0.78. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.89 and its Current Ratio is 1.55. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Owens Corning [OC] has 109.26M shares outstanding, amounting to a total market cap of $5.79B. Its stock price has been found in the range of 40.64 to 88.57. At its current price, it has moved by -38.41% from its 52-week high, and it has moved 34.23% from its 52-week low.
This stock’s Beta value is currently 1.22, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 72.04. This RSI suggests that Owens Corning is currently Overbought.
Conclusion: Is Owens Corning [OC] a Reliable Buy?
Owens Corning [OC] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.